The goal of California’s audacious decision to raise the minimum wage for fast-food employees to $20 hourly was to close the disparity in salaries. 

Regrettably, it’s also leading to major hikes and job losses, negatively affecting many Californians’ lives.

Inhabitants of the Golden State are leaving due to the state’s high living expenses and also high taxes.

A total of 1.2 million individuals have gone in the space of three years. Surprisingly, this surpassed even New York in the number of departures.

California’s electricity prices are among the most expensive in the country. This is due to the state’s dedication to renewable or “green” energy.

Due to this, the working class is bearing a heavy financial burden from increased costs that cost extra no matter the exact amount of energy consumed.

California’s extensive spending, taxes, and regulations also play a part.

A significant number of people have left in the past three years, which indicates their dissatisfaction with how the government has managed the economy.

The purpose of the most current hike in the minimum wage was to guarantee that workers at companies receive fair compensation.

On the contrary, due to these fresh financial strains, fast-food chains are being forced to stop hiring and begin layoffs.

Automation is becoming more and more popular among large fast-food businesses as labor costs rise.

In California, this sector is losing much of its original employment due to the technological revolution.

Just at Pizza Hut and Round Table Pizza, there have been approximately 1,100 job cuts.

This led to a rise in the use of meal delivery apps, which has created further legal problems and has added to the complications.

Legislators who are advocating for higher pay are raising concerns that they may not fully understand what the implications are for the economy.

According to Fox News, their lack of firsthand business knowledge may be one of the blind spots exacerbating the effects of these rules.

Although raising the minimum wage was supposed to help employees, lower-class families have been unjustly affected.

According to Fox News, they’re having more difficulty making ends meet due to the lack of jobs. Another reason is the increased costs at their beloved fast-food restaurants.

California’s $20 minimum wage indirectly limits job opportunities for lower-paying businesses.

As reported by Fox News, those impacted have been forced to relocate to another state. They are also forced to function without a job or resort to charities.

The Fast Food Association’s ability to raise wages by an additional 3.5% annually may eventually drive out workers from the industry.

Prospective employees in the sector will have an unstable path because of this constant instability.

According to Stuart Varney of Varney & Co, Governor Newsom is currently being negatively impacted by California’s astronomical taxes, rising poverty levels, and harsh environmental regulations.

The success and effects of these initiatives spark discussions concerning the general well-being of the state’s citizens and economy. However, it remains a largely divisive issue.