California's Minimum Wage Hike: A Surprise Success

California's September 2023 law raising the minimum wage for fast-food workers to $20 per hour faced immediate backlash, with predictions of widespread job losses and business closures. However, these predictions proved false. Since the law's April implementation, California's fast-food sector has seen job growth exceeding the national average. Economists' analyses revealed that increased wages didn't decrease employment; instead, reduced employee turnover and increased productivity lowered labor costs for employers. While prices rose, the increase was far less than anticipated, significantly outweighed by the wage increase for workers. This challenges assumptions about minimum wage impacts, highlighting biases in economic understanding and the role of media in disseminating misinformation.