Wednesday, December 31, 2014

Learning Economics Through Pictures - Minimum Wage and Jack-in-the-Box

On a trip to California last week, this is what I found in a Jack-in-the-Box restaurant.  Putting in a machine like this is a natural response by firms who see minimum wage increases (or threats of minimum wage increases).  The firms will replace low-skilled employees with machinery.  

California increased their minimum wage on July 1, 2014 (to $9.00/hour).  That is terrible news for young and low-skill workers.

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