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California Implements $20 Minimum Wage for Fast-Food Workers Amid Economic Debate

The new wage policy, effective April 1, is met with mixed reactions, as some predict job losses and others argue it will boost the economy.

  • California's $20 minimum wage for fast-food workers went into effect on April 1, raising pay by 25% from the state's previous $16 minimum.
  • Critics argue the wage increase could lead to job losses, higher prices for consumers, and a push towards automation in the fast-food industry.
  • Supporters claim the wage hike will provide a much-needed boost to workers' living standards and stimulate the local economy through increased spending.
  • Economists are divided on the policy's long-term effects on unemployment, with some predicting a higher natural rate of unemployment in California.
  • Labor movements and wage increases in other sectors, such as hospitality, indicate a broader trend towards higher wages in the state.
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