Econ 101 in the California Fast Food Industry

California recently made headlines by raising its state minimum wage for fast-food workers to $20 per hour. Intended as a benefit, however, it is having unintended consequences. Despite that, the CA government is contemplating increasing it still further. The results of the minimum wage increase are increased automation and lost jobs – 180 degrees off the intended target. Those who still have jobs will be making more – but paying more taxes.