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Minimum Wage Hike Has Unintended Consequences: Walters



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In his Jan. 7 CALmatters column, Dan Walters explores the minimum wage debate taking place across the country, but particularly here in progressive California.
Walters offers a balanced perspective and shows that, for every benefit from policies like minimum wage hikes, there are often downsides as well.
One of the highlights he touches on is the increasing pace of automation for positions like cashiers.
Essentially, Walters writes that, although minimum wage increases may be intended to improve life for low-income workers, they could have somewhat of the opposite effect if they drive businesses to phase out those jobs altogether.
At the same time, he notes that another study showed minimum wage increases the pay and savings of those who retain their jobs.
He concludes that the policy is a double-edged sword – while improving the lives of some, speeding the inevitable creep of automation is also a suboptimal result.
Overall, he writes, many policies reflect the minimum wage debate, maybe just not as explicitly. In most instances, there is never a purely positive result.
To read Walters full take on the minimum wage dilemma, click here: Minimum wage hike, other acts have consequences