So when labor costs go up, retail prices go up? (Sacramento: middle-class, real estate)

[ysr_racer]

I'm shocked, shocked I tells ya

McDonald’s, Chipotle to hike menu prices after California Gov. Newsom approves $20 fast food minimum wage

https://www.foxbusiness.com/economy/...d-minimum-wage

[NORTY FLATZ]

LOL, home of the $12 Big Mac!

(Which, isn't that big...)

[colobound65]

My friend owns 3 Weinerschnitzels. All fast food owners are panicking over this. Prices will sky rocket at all fast food locations. Lawyers are trying to fight Sacramento and Newsom but will probably lose.

Does this 20.00 wage include wait staff at restaurants?

[mixxalot]

more reason to cook meals at home and brew own coffee.

[Kings Gambit]

Originally Posted by ysr_racer

I'm shocked, shocked I tells ya

McDonald’s, Chipotle to hike menu prices after California Gov. Newsom approves $20 fast food minimum wage

Just go to In-N-Out Burger instead of McDonalds. CA In-N-Out employees all START at $19.00 - $20.00 per hour so they arent going to be affected so much.

[DiffuseGlow]

If you still eat those pathetic Big Macs, you deserve to get ripped off.

[JGC97]

when labor costs go up, retail prices go up

Most of the time, yes. They do. Try and tell anyone around here of that and they don't believe you. You should see all the threads on this site over the years that discuss that very topic. Yet, the proof is in the results of minimum wage increases. Prices went up, just as predicted. And they will again as long the cycle continues. You don't really think business owners are going to take that deep of a cut into their profit margin, do you? They may take a small loss but, in the end, consumers pay for it with higher prices. Every. Single. Time.

[Thekdog]

Waiting for the "fast food price gouging"bill

[Veritas Vincit]

Originally Posted by HereOnMars

Most of the time, yes. They do. Try and tell anyone around here of that and they don't believe you. You should see all the threads on this site over the years that discuss that very topic. Yet, the proof is in the results of minimum wage increases. Prices went up, just as predicted. And they will again as long the cycle continues. You don't really think business owners are going to take that deep of a cut into their profit margin, do you? They may take a small loss but, in the end, consumers pay for it with higher prices. Every. Single. Time.

Higher cost is always passed on. It's a 'no-brainer'. The only time that doesn't happen is if you can't afford to do that because demand will dry up if you go higher in pricing. In that instance, businesses and jobs just start going away over time.



But it's a ripple effect. If CA pays burger flippers 40k a year, it's logical that middling white collar employees will make 100k a year, in demand engineers 150k+ starting salaries etc. It affects the entire wage structure. That in turn makes stuff incl. housing in CA so expensive, so the burger flippers at 40k a year stay poor no matter how what laws the unions push through.


Of course, that's mostly a CA problem, but it's certainly possible that CA's own 'state inflation' drives up real estate cost elsewhere. Middle-class people from CA can turn those inflated CA assets into real cash to use in Idaho, Nevada, Texas etc. where middle-class people do not make 100k a year and their existing small ranch houses aren't worth 800k.

[JGC97]

Originally Posted by Veritas Vincit

Higher cost is always passed on. It's a 'no-brainer'.

LOL - You get it. I get it but there are plenty around here who don't see it that way. Not challenging anyone to a debate on it. Just puttin' it out there .... one more time.