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News Link • Minimum Wage

California's Minimum Wage Backfire

• Wall Street Journal

The laws of economics continue to exist even when politicians ignore them. The latest illustration is the unfolding damage from California's increase in the fast-food minimum wage to $20 an hour.

We recently reported on the employment impact, but California Gov. Gavin Newsom's office claimed we were "pushing a false narrative." Now others in the press are catching on to the reality.

An Associated Press dispatch last week reported that California fast-food franchises have been cutting worker hours after the wage mandate took effect in April, a 25% increase from the statewide $16 an hour minimum. A Wendy's franchise owner said he used to schedule nearly a dozen workers for an afternoon shift. Now only seven. He also raised prices 8%.


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