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$20 Minimum Wage: Experts Debunk Fast Food Price Hike Fears in California!

Experts Challenge Fast Food Chains’ Claims of Necessitating Price Hikes Amid Minimum Wage Increase

Debunking the Fast Food Price Hike Narrative: Experts Assert Wage Increase Manageable for Companies

Following the recent minimum wage increase in California, experts are questioning claims made by some fast food chains that they need to raise prices or cut jobs to deal with higher labor costs, according to the published article of KNX News. They say that despite what CEOs are saying fast food companies can handle the extra costs without having to raise prices much. Ali Bustamante from the Roosevelt Institute pointed out that these companies are making a lot of money so they can manage without hurting customers or workers.

Michael Reich, a professor at UC Berkeley agreed saying that the impact on companies might not be as bad as they say. He explained that the average cost for companies will only go up a bit, even if the minimum wage goes up a lot. Tia Koonse from the UCLA Labor Center added that in places where wages are already high claims of job cuts because of higher labor costs are not true.

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Experts Challenge Fast Food Chains’ Claims of Necessitating Price Hikes Amid Minimum Wage Increase. (photo: FOX 7 Austin)

Experts Argue Against Fast Food Price Hike, Advocate for Worker Investment Instead

Despite some fast food chains saying they need to raise prices, experts are saying otherwise. They believe companies can handle the higher wages without making customers pay more. They’re urging companies to use this as a chance to invest in their workers which they say will be good for everyone in the long run. This debate shows how complicated things can get when talking about how much people should get paid and how businesses should operate.

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