My wife works at McDonald's. They cut her hours from 8 to 4 hours now and same goes to each of her co workers. In the end, she is taking home approximately 300$ less than before the change.
Raising min wage just raises cost of everything , it helps nobody other than the government who collects more taxes from wages and more taxes due to increased price of goods .. min wage is a scam.
sounds like he expressed a good understanding. Businesses will have to raise prices to compensate because most businesses dont make major profits in the first place. Upon raising prices, consumption will drop slightly. To then compensate for the reduced sales, jobs will have to be turned off. Quite literally the only entity that has nothing to lose is the government tax income...until businesses close as a whole.@@AuxiliaryPanther
@@sketchbookofhorror8747 this isn't your "boss giving you a raise", this is your boss being forced to give you a raise rather than a raise being given due to performance or economic gain. Companies make money by selling things not by paying their employees; so this is a backwards way of determining wages.
Don't worry any business paying minimum wage will have to go to $20 to get employees and Newsom knows that. The real reason minimum has increased is because of SEIU. They got a $4 increase even when they were making more than $16 an hour.
I have a real concern for people who are asking for higher minimum wages and stay at the same minimum wage jobs and call it a career. These are jobs are supposed to give young working teenagers and adults exposure to what work is and learn skills and observe where else those skills can be applied to in the next level of work you will be progressing to. You're not supposed to be making a living at a minimum wage job, you are supposed to be learning.
@superblondeDotOrg I'm actually a registered Democrat...... but ok. If you started out with a minimum wage job, I hope you're out of it and have a better paying job by now. If not, good luck to you, and i hope you grow and get out of it.
@@harmonykoryou must not have ever heard about plumbers, electricians, Hvac, Truckers and a host of others that make more than 50% of those that went to college and 100% more than those that took gender theory and liberal arts in college.
@@mikedebnam2412 Fast food workers should stop serving any animal products which all destroy the climate due to animal agriculture, how about that instead!
This professor is stuck in college theory fairyland. The real world increases will be much more then he predicted. Not only does the min wage go up but also food costs, workers comp, payroll taxes...
@@harmonykor and he will be adding more machines to take over the workers that he now pays. Do you not think these machines are available Now? Are you still living in the 60's? The costs of those machines are coming down and are looking better and better to these businesses. You can start cutting unemployment insurance, workman's comp, payroll taxes, health insurance, sick pay. Maybe you should take a course in business and economics before you comment.
This guys a professor? Its clear he never owned a business. He must have been one of the idiots that advised Newsom, You keep concentrating on big fast food corporations. What about the small mom and pop burger places?
say goodbye to the small businesses that want to compete with fast food minimum wage. lets increase the wealth gap by getting rid of the middle class completely lol. only monopoly companies will survive since they will pass the cost to the consumer
@@melodyocampo227 there were several sandwhiches in 2019 you could buy for $1 they are now 2.79$ possibly already $3 they went up 300% in 4-5 years why doybt a big mac wouldnt hit 30 ?
People should understand that the wage should be aligned with what that worker is producing/doing for the company. If the company is not getting its money worth, there are gonna be layoffs. Thats the effect of forcing businesses to pay higher wages. Losing your job, sitting at home, earning nothing. Its the opposite of what the minimum wage is supposed to be there for.
They should have lowered the minimum wage to $12.50 .Minimum skill/ minimum education job should not need to support a family of four in the expense of everybody else paying more
i would hate to have him for a professor. he made that sound about as palatable as a crunchy cardboard. i've professors before and that slow monotone tone is.... >_< 4 hours at a time. ugh
So basically you raised the minimum wage through out all of the job market and what will that do to a small business starting out wanting to grow ? I'll tell you it can't create new jobs 😢
Get ready CALIFORNIA, you're about to lose every fast food restaurant that exists in your State or they are putting in bakeries everywhere lol. This is going to be awesome to watch the collapse.
GOOD JOBS DONT HIRE FROM THE BOTTOM UP ! APPLY YOURSELF , STUDY , STAND OUT , FIGHT TO BE ABOVE ! TRUST ME WE ALL DID IT THATS HOW ITS WORKS ! you get want you put into it!
Where were you when landlords increased rent on businesses and suppliers jacking up their prices? These have bigger impact on the cost than minimum wage increases
As a person who has worked all aspects of the food industry starting with McDonald's (and since moved out of the industry all together) I do know that the employees work extremely hard, and deserve to make good compensation for their efforts, but I think there are some myths that need to be busted. A lot of jobs that require higher knowledge/experience pay less or the same as $20/hr. Fast food are entry level jobs. The pay is low on purpose so you move on and leave that job opening for someone who needs job experience. I always thought that "certain jobs" paid more but I have learned otherwise. Rumors go around quickly as to what they are making and get this, some people lie about what they actually make. 😲 I remember someone asking me how much I made and they were shocked that not only did I make half of what I was rumored to have made but those depts that were envious of ours was already making more than us. The reality is, we don't need wages to go up, we need life essentials/needs to come down. (NEEDS, NOT WANTS) Wants should always be expensive. It's what drives us to strive to be better and level up.
i know right? people can leave the job if they do not want to work for that company, it is crazy for the government to keep on adding regulations on how to do business. this is going to kill businesses
The low skill workforce is pricing themselves out of a job. Companies that can't adapt ot the replacement automation will also be priced out of the competitive market. Overall the market share is shrinking as disposable income is shrinking due to the high cost of goods and services for the essentials such as food, housing, and transportation.
The fact that the minimum wage has gone up to $20 an hour, means the cost of my food has gone up. Therefore, we should no longer tip, as they have a living wage. Tip culture has gotten out of hand and I shouldnt have to tip and pay for more expensive food.
I think they could find a better expert. This guy isn't seeing reality. Fast food prices keep going up and the food isn't any better. Worse actually. Lame argument. Working at McDonald's isn't a career for 80% of the employees.
Obviously a professor that has only experienced generating income by using graphs and charts. First off, as long as your sales and the existing expenses remain the same, it will only be a 2% increase. But in reality the other costs associated with running the restaurant will go up annually just as they have since the first burger was sold for a nickel. So lets say it is a 2% increase, restaurants average about 10% profit after all expenses related to running the business, so what that really equates to is a 20% decline in actual profit over any given time period. On top of all of this, McDonalds is a franchise and like any other franchise, most of the 10% profit is paid back to the parent company in royalties every week. Some as high as 10% of gross sales. Independently owned businesses will have a better chance to pull this wage increase off than a franchise will. And this guy is an example of what's wrong with so called experts. Enjoy your $18 happy meal!
This guy apparently doesn't know what he is talking about. Increase wage increases a number of things. Cost of products outside the industry which increases product costs for your items that you put together in your restaurant it also increases unemployment taxes on your business and increases insurance costs on your business. I could go on and on. This guy apparently never has been a business owner. I have for over 40 years.
😂This man said raising wages to $20 will only increase the cost of a burger by 8 cents?!?!😂 these dummies are celebrating this “win” but when prices creep up for everything, $20 an hour will not cut it. Minimum wage job is not a CAREER
What you don't understand is the minimum wage going to $20 yes it will bring up restaurant costs. But as a worker if your wage is 25% higher and you don't eat out then you are making 25% more. If you eat out at restaurants and fast food a lot then you are making 25% less😂. This is all propoganda to pay less lol. I Eat at home so the minimum wage going up funnels into higher paying jobs Having to payy more . Simply because why would you install internet and climb polls for 20/hr when you can work at McDonald's for the same so they have to pay $25-$30 now. Honestly it's actually good for people. It's bad for corporations who have addopted shareholders first environment. It's also bad for people who eat fast food and out alot because it will average out worst . Cry me a river stop eating McDonald's and out then it's a good situation.
My wife works at McDonald's. They cut her hours from 8 to 4 hours now and same goes to each of her co workers. In the end, she is taking home approximately 300$ less than before the change.
In a way that's good, she's making more in less time. Time is an asset that no one can get back. Have her use her extra time wisely and level up.
Raising min wage just raises cost of everything , it helps nobody other than the government who collects more taxes from wages and more taxes due to increased price of goods .. min wage is a scam.
Oh yeah? What is this opinion based on, a basic understanding of economics and business practices?!
sounds like he expressed a good understanding. Businesses will have to raise prices to compensate because most businesses dont make major profits in the first place. Upon raising prices, consumption will drop slightly. To then compensate for the reduced sales, jobs will have to be turned off.
Quite literally the only entity that has nothing to lose is the government tax income...until businesses close as a whole.@@AuxiliaryPanther
if the boss CHOOSES to do that that is one thing. The government TELLING your boss to do that is something else.@@sketchbookofhorror8747
@@sketchbookofhorror8747 this isn't your "boss giving you a raise", this is your boss being forced to give you a raise rather than a raise being given due to performance or economic gain. Companies make money by selling things not by paying their employees; so this is a backwards way of determining wages.
@@sketchbookofhorror8747 no, I just did not address it because it wasn't good.
Why fast food? What about retail and other workers?
Because greedy companies want slaves in restaurants, at least retail pays above minimum wage
I don’t get it…
It's really weird to have two broad classes of minimum wage. Why were large fast food restaurants singled out?
Don't worry any business paying minimum wage will have to go to $20 to get employees and Newsom knows that. The real reason minimum has increased is because of SEIU. They got a $4 increase even when they were making more than $16 an hour.
Because of Newsome, every fast food chain in California will have a bakery, so they won't have to pay $20/hr.
Yup. Whoudda thunk it, right!? And, order-taking kiosks will become the norm.
I have a real concern for people who are asking for higher minimum wages and stay at the same minimum wage jobs and call it a career. These are jobs are supposed to give young working teenagers and adults exposure to what work is and learn skills and observe where else those skills can be applied to in the next level of work you will be progressing to. You're not supposed to be making a living at a minimum wage job, you are supposed to be learning.
Ok Republican who is factually incorrect
@superblondeDotOrg I'm actually a registered Democrat...... but ok. If you started out with a minimum wage job, I hope you're out of it and have a better paying job by now. If not, good luck to you, and i hope you grow and get out of it.
not everyone can get
a college degree.
@@harmonykoryou must not have ever heard about plumbers, electricians, Hvac, Truckers and a host of others that make more than 50% of those that went to college and 100% more than those that took gender theory and liberal arts in college.
HOUSING Affordability is the problem especially in California, not the Minimum Wage!
It's both really.
@@mikedebnam2412 Fast food workers should stop serving any animal products which all destroy the climate due to animal agriculture, how about that instead!
This professor is stuck in college theory fairyland. The real world increases will be much more then he predicted. Not only does the min wage go up but also food costs, workers comp, payroll taxes...
I guarantee the owner of the business will still make money!!!!
@@harmonykor and he will be adding more machines to take over the workers that he now pays. Do you not think these machines are available Now? Are you still living in the 60's? The costs of those machines are coming down and are looking better and better to these businesses. You can start cutting unemployment insurance, workman's comp, payroll taxes, health insurance, sick pay. Maybe you should take a course in business and economics before you comment.
This guys a professor? Its clear he never owned a business. He must have been one of the idiots that advised Newsom, You keep concentrating on big fast food corporations. What about the small mom and pop burger places?
Californians should stop complaining about their burgers cost twice as much as other parts of the country.
No it's just corporate greed. They can damn well afford keep the prices the same while paying their workers more.
Every business will need to match this min wage in order to compete. Prepare yourself because Calif cost of living is about to skyrocket!
say goodbye to the small businesses that want to compete with fast food minimum wage. lets increase the wealth gap by getting rid of the middle class completely lol. only monopoly companies will survive since they will pass the cost to the consumer
This is unbelievable. You are lost 8 cent increase on a burger. That's a laugh.
Close baby close no more fast food restaurants in California and that's karma.
Why do conservatives like yourself hate it so much when something is finally done to improve the lives of the common people?
$30 Big Mac here we come!
It will not go that high and people are already buying them at $17 that will not stop 🛑 people .
What are you trying to achieve by spewing that ridiculous comment?
The business will die
@@melodyocampo227 there were several sandwhiches in 2019 you could buy for $1 they are now 2.79$ possibly already $3 they went up 300% in 4-5 years why doybt a big mac wouldnt hit 30 ?
My local taco bell has $1 item menu but the size of the tacos and the tortillas got smaller
People should understand that the wage should be aligned with what that worker is producing/doing for the company. If the company is not getting its money worth, there are gonna be layoffs. Thats the effect of forcing businesses to pay higher wages. Losing your job, sitting at home, earning nothing. Its the opposite of what the minimum wage is supposed to be there for.
They should have lowered the minimum wage to $12.50 .Minimum skill/ minimum education job should not need to support a family of four in the expense of everybody else paying more
i would hate to have him for a professor. he made that sound about as palatable as a crunchy cardboard. i've professors before and that slow monotone tone is.... >_< 4 hours at a time. ugh
Will experienced employees get a sufficient and similar wage increase to keep them about starting wages, or will it be political window dressing.
It could pave the way for other states? I highly doubt that other states are going to do this after they see the fallout we go through here…
So basically you raised the minimum wage through out all of the job market and what will that do to a small business starting out wanting to grow ? I'll tell you it can't create new jobs 😢
I need to invest in fast food automation companies.
yep, there will be no fast food workers in 3 years
Get ready CALIFORNIA, you're about to lose every fast food restaurant that exists in your State or they are putting in bakeries everywhere lol. This is going to be awesome to watch the collapse.
CA is disaster
But crypto is not
BURGERS IS A KIDS JOB , ITS FOR PEOPLE THAT DECIDED THAT 10TH GRADE WAS ENOUGH TO FEED A FAMILY , I STOPPED BUYING FAST FOOD ! FRIES IS NOT A CAREER ,
fast food is a low skill job and low skill gets low pay thats how it works !
Not everyone is lucky or rich enough to get a career boomer.
GOOD JOBS DONT HIRE FROM THE BOTTOM UP ! APPLY YOURSELF , STUDY , STAND OUT , FIGHT TO BE ABOVE ! TRUST ME WE ALL DID IT THATS HOW ITS WORKS ! you get want you put into it!
Robots would take your jobs
A good example of why Berkeley is a laughingstock now. This guy is teaching people. Yikes.
Where were you when landlords increased rent on businesses and suppliers jacking up their prices? These have bigger impact on the cost than minimum wage increases
Thank god I don’t eat fast food anymore. Good luck poor people
It means a hamburger will cost
you $20+
Who in the duck is this guy ..can he even put a full thought together??
Kin of the “Big Guy”
As a person who has worked all aspects of the food industry starting with McDonald's (and since moved out of the industry all together) I do know that the employees work extremely hard, and deserve to make good compensation for their efforts, but I think there are some myths that need to be busted. A lot of jobs that require higher knowledge/experience pay less or the same as $20/hr. Fast food are entry level jobs. The pay is low on purpose so you move on and leave that job opening for someone who needs job experience. I always thought that "certain jobs" paid more but I have learned otherwise. Rumors go around quickly as to what they are making and get this, some people lie about what they actually make. 😲
I remember someone asking me how much I made and they were shocked that not only did I make half of what I was rumored to have made but those depts that were envious of ours was already making more than us.
The reality is, we don't need wages to go up, we need life essentials/needs to come down.
(NEEDS, NOT WANTS)
Wants should always be expensive. It's what drives us to strive to be better and level up.
This will backfire horrendously.
And that is an economist? 😂😂😂😂
lol why not try trading xx
Super boring professor and wrong.
Not very wise to raise minimum wages when automation and autonomy (AI) has been buzzin' lately. 🤖
A professor that does not know how to calculate the effect of 25% wage increase. Fast food labor cost is 33% net difference 8 cents?
If a restaurant or any other business isnt paying a legitimate wage - Im thinking dont work there and let them go out of business ?
i know right? people can leave the job if they do not want to work for that company, it is crazy for the government to keep on adding regulations on how to do business. this is going to kill businesses
The low skill workforce is pricing themselves out of a job. Companies that can't adapt ot the replacement automation will also be priced out of the competitive market. Overall the market share is shrinking as disposable income is shrinking due to the high cost of goods and services for the essentials such as food, housing, and transportation.
The fact that the minimum wage has gone up to $20 an hour, means the cost of my food has gone up. Therefore, we should no longer tip, as they have a living wage. Tip culture has gotten out of hand and I shouldnt have to tip and pay for more expensive food.
It means I’m not eating there ever again. We know big shots aren’t taking a pay cut
Why would they? Would you take a pay cut right now where you are???
I think they could find a better expert. This guy isn't seeing reality. Fast food prices keep going up and the food isn't any better. Worse actually. Lame argument. Working at McDonald's isn't a career for 80% of the employees.
"This guy isn't seeing reality" Indeed, this rambling, it's only really 5% is delusional and clearly cherry picking.
Jesus h I would not go to UC Berkeley economics if you paid me!!!!
Biggest issue w/ minimum wage increase is its effect on small business owner who were paying well over the minimum wage.
Why does every news channel have the comment section turned off concerning this issue. JEEEZ, Gavin is such snake
Less jobs more automation,This will be the end result.
Obviously a professor that has only experienced generating income by using graphs and charts.
First off, as long as your sales and the existing expenses remain the same, it will only be a 2% increase.
But in reality the other costs associated with running the restaurant will go up annually just as they have since the first burger was sold for a nickel.
So lets say it is a 2% increase, restaurants average about 10% profit after all expenses related to running the business, so what that really equates to is a
20% decline in actual profit over any given time period. On top of all of this, McDonalds is a franchise and like any other franchise, most of the 10% profit is paid
back to the parent company in royalties every week. Some as high as 10% of gross sales.
Independently owned businesses will have a better chance to pull this wage increase off than a franchise will.
And this guy is an example of what's wrong with so called experts.
Enjoy your $18 happy meal!
This guy apparently doesn't know what he is talking about. Increase wage increases a number of things. Cost of products outside the industry which increases product costs for your items that you put together in your restaurant it also increases unemployment taxes on your business and increases insurance costs on your business. I could go on and on. This guy apparently never has been a business owner. I have for over 40 years.
Hope all the business no close down in California
This guy has never ran a business in his life.Yes, no idea.What the hell are you talking about
😂This man said raising wages to $20 will only increase the cost of a burger by 8 cents?!?!😂 these dummies are celebrating this “win” but when prices creep up for everything, $20 an hour will not cut it. Minimum wage job is not a CAREER
Is this guy for real. Which state of mind he lives in.
Interesting news!
What you don't understand is the minimum wage going to $20 yes it will bring up restaurant costs. But as a worker if your wage is 25% higher and you don't eat out then you are making 25% more. If you eat out at restaurants and fast food a lot then you are making 25% less😂. This is all propoganda to pay less lol. I Eat at home so the minimum wage going up funnels into higher paying jobs Having to payy more . Simply because why would you install internet and climb polls for 20/hr when you can work at McDonald's for the same so they have to pay $25-$30 now. Honestly it's actually good for people. It's bad for corporations who have addopted shareholders first environment. It's also bad for people who eat fast food and out alot because it will average out worst . Cry me a river stop eating McDonald's and out then it's a good situation.
It's okay they'll soon be replaced by mostly machines anyway.
cope
Soundhound to the rescue if they had any sense🧐🤑
AI cannot get here fast enough…😎