Everybody wants to make money. I do. Everybody wants to make as much money as they can. Again, I do. However, what businesses and workers do not need is the government mandating how much a certain segment, or any segment of the job market will be paid. Starting April 1, 2024, all “fast food restaurant employees” in California must be paid at least $20.00 per hour. What could possibly go wrong with this?

Consumers of food, which is everybody under the sun, will eventually and perhaps very quickly be paying much more for a fast food meal than they are right now. How does the thought of paying $15 for one fast food hamburger sound? It sounds absurd doesn’t it? This is what Californians are likely to experience very soon.

Traditionally a job in the fast food industry was a “starter job” for teenagers. After graduating from baby sitting and mowing the neighborhood lawns, teens secured jobs in the fast food industry. It was there that they earned money, but more importantly they acquired the needed working skills necessary for their life and advancement based on merit. Fast food jobs shouldn’t be jobs for people who need to raise a family.

Economist Christopher Thornberg of Beacon Economics, said that in a competitive market, increasing minimum wages for the lowest-paid workers will lead to higher prices for consumers. For example, McDonald’s and Chipotle executives have already said they plan to raise prices next year to offset increased labor costs. Welcome to Progressive Economics 101.

Rest assured, dear readers, most employers will be cutting hours or laying off workers in order to maintain their the profit margins. Also, not surprisingly there will be less customers frequenting their businesses. Everybody will eventually lose under this legislation. The idea for higher minimum wage across all industries will now gain momentum. This idea will spread across the nation and prices will again rise for everything that consumers buy.

And that is Progressive Economics 101. Everybody loses.

Yea!

Copyright © Marc Stockwell-Moniz