Californians FA'd. Now They're FO'ing at the Drive Thru.

Consumers picking up burgers, burritos and chicken sandwiches at chains in the Golden State are grappling with prices that for months have been rising at a faster clip than in other states, according to market-research firm Datassential. 

Advertisement

Since September, when California moved to require large fast-food chains to bump up their minimum hourly pay to $20 in April, fast-food and fast-casual restaurants in California have increased prices by 10% overall, outpacing all other states, the firm found in an analysis of thousands of restaurants across 70 large chains. 

Ed Morrissey

Well ... duh. When you artificially inflate business costs, those will get passed along to consumers and workers in one form or another. Either prices go up, jobs get destroyed, or a combination of the two. Casual food stores are now shifting rapidly to kiosks for ordering and payment, only keeping cooks employed, in order to limit exposure. The artificial wage increase also means that these employers will be much less likely to take chances with teenagers or applicants with a spotty employment record. 

Every single one of these outcomes was not only predictable, but predicted. Raising minimum wage levels is inflationary and does nothing to increase overall buying power or wealth. 

Join the conversation as a VIP Member

Trending on HotAir Videos

Advertisement
Advertisement
Advertisement