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Companies in CA City with the nation's highest minimum wage have this problem



You will never guess, but companies in the city with the highest minimum wage in the United States lay off workers.

Emeryville, California, with a population of 12,000, hometown of Pixar Animation Studios, has a minimum wage of $ 16.50 per hour, which is almost twice what it was five years ago. The Wall Street Journal notes that "the median rent for a one-bedroom apartment is $ 2840, the median house price is more than $ 560,000, and a salad costs more than $ 15."

Various business owners have had to lay off workers because of it. the city's minimum wage; Marcos Quezada from Patatas Neighborhood Kitchen recently added 60% of his ten staff. He told the Journal about the minimum wage increase, "I just didn't see how to survive it." Erik Hansen, the owner of Moomie's, said that he could either increase the sandwich prices by up to $ 1

.50 or lay off one of his three workers.

Doug Smith, co-owner of Rudy & # 39; s Fail Cafe, hailed the award for the cafe's Deuces Wild special for $ 14.50 from $ 11 in 2015 and the crunchy Asian salad at $ 15.50 from $ 10. But he allowed inflation to cover his payroll costs. Marilyn Boucher, owner of Broken Rack, said she cut hours with her employees as she had planned to raise before the wage increase. She told the magazine, "We're all up against a brick wall."

California's minimum wage is $ 12 an hour; It will rise to $ 15 an hour by 2022.

The Journal noted, "An analysis released in early July by the Congressional Budget Office estimated that a federal minimum wage of $ 15 would increase the pay of 17 million workers who would otherwise earn less than $ 15 an hour and lift 1.3 million Americans out of poverty, but also result in about 1.3 million lost jobs. ”

In May, The Daily Signal noted that Restaurant Business Online had reported,“ Almost 1 in 10 in areas with a recently increased minimum wage have closed an operation since the cost increase, and 71 percent have attempted to pass along the increase to customers by raising menu prices, according to new research. "

The Daily Wire reported in March," according to a new survey by 197 labor economists completed in February, 74% oppose raising the federal minimum wage to $ 15 an hour and nearly half (43%) believe that the federal minimum wage should be eliminated. lt … 88% of economists thought an acceptable federal minimum wage should be less than $ 15; 66% agreed that an appropriate federal minimum wage would be $ 10 per hour or less. 84% thought a $ 15 minimum wage would adversely affect youth work; 77% believed that the increase in minimum wage would have a negative impact on the number of available jobs. "

In February, the Mercatus Center at George Mason University released the results of a study linking rising minimum wages to falling youth employment rates. According to the study, although there may be three possible causes for the decline in teenage employment in the United States since 2000 – a rising minimum wage, increasing returns on schooling and increasing competition from immigrants – the authors found that the higher minimum wage was the dominant factor. In addition, the study suggested that higher minimum wage for teenagers led to lower future earnings.


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