Business groups claim hard-fought $20 hourly wage victory will cause reduced hours, layoffs and price hikes – critics say otherwise
As fast-food workers celebrated a pivotal wage increase to $20 an hour in California last week, an old economic debate was awakened by business groups and others claiming the increase will wind up hurting workers through reduced hours and layoffs, hurt customers with price hikes, and harm the franchise owners of fast food restaurants.
Their critics are not so sure.
The hard-fought wage increase to $20 an hour from California’s current minimum wage, $16 an hour, was a compromise to initial demands of $22 an hour with annual wage increases. Representatives of fast-food workers and the fast food industry came to a deal to avoid what would have been a costly ballot initiative over the passage and signing of the California fast food sector bill last year.
“Frontline workers like me organized, went on strike, and fought to pass a historic law that raises our wages and gives us a seat at table with some of the biggest fast food corporations in the world,” said Anjelica Hernandez, a McDonald’s worker in Los Angeles for nearly 20 years. “Even though we are the engine of a billion-dollar industry, too many of us struggle to keep with rent, our bills and the rising cost of living.”
Dredging up an old article because this argument is also old:
https://www.newsweek.com/minimum-wage-15-denmark-big-mac-mcdonalds-1573414
Big Macs are $10 in the northeast U.S.
I wouldn’t say they cost $10, but they’re definitely charging $10 for them.
8.29 big mac. 12.19 for the meal. 3.49 hashbrowns.
No deals no sales. Been this way since at least covid.
Now then again the local diners burger is 13 bucks and one step nicer the burgers hit 15-18 and any nicer you lose sides at that cost.
But that said every news and economy article talking about big macs and mcdonalds prices, even as recent at January 2024 say Big Macs are $5-6.
So prices are legitimately up, but we are being lied to as to how much and why. The measurements appear to be intentionally off.
I’ve been out of the loop on fast food prices for a while. Didn’t realize it had gotten that bad.
After covid, I realized I hadn’t eaten fast food for about a year and decided to keep that trend going. The one time I had to stop somewhere to eat (late 2021 I think?), it was more expensive than I remembered and also kind of gross. Not sure if it was always gross and I just didn’t notice or if something changed, but it definitely wasn’t worth it.
You’re not missing much. I recently had to eat fast food after years of not, by poor planning in a road trip. What do you do when rest areas only serve junk and you’re traveling late when the local places are closed? It seems like I paid about $50 for two McDonalds meals. Way over priced and horrible food, definitely not worth it
The last time I ended up at McDonald’s with my kids it cost as much as a real restaurant.
This argument has always been absolutely ridiculous. McDonald’s doesn’t set prices based on their costs. McDonald’s sets their prices based on what people are willing to pay. Why would they charge $4.80 when people would be willing to pay $5.15? That would be an extra $.35 profit if they charged more with no increase in costs.
While this means that there will be less profits, the worst case scenario is that fast food places determine that they can’t make profits and will shut down. They’ll use this as an excuse to bump their prices to more than compensate for their lost profits.