Part 10/12:
The Broader Economic Impact: A Case Study in California
California exemplifies the consequences of aggressive minimum wage policies. The automation trend has led to:
Significant reductions in workforce numbers at fast-food outlets.
Increased prices for consumers, placing additional financial burdens on low-income households.
Reduced work hours for existing employees due to cost-cutting measures.
Challenges for small, local restaurants, some of which are forced to shut down.
While some supporters tout higher wages as a route to economic justice, the observable effects suggest otherwise. Instead of uplifting workers, policies like these risk creating a paradox where workers, especially the youth and unskilled laborers, face unemployment or underemployment.