Minimum wage increases for fast food workers and Lyft drivers

Fast food workers in California are seeing an increase in their paychecks. This is because of a recent minimum wage law that went into effect earlier this month. The law requires fast food chains like McDonald’s and Starbucks to pay workers $20 per hour. It will also affect restaurants that have at least 60 other locations nationwide. Opponents of the law say it will lead to layoffs and store closures . . . but for fast food workers who have been fighting for better pay, this could mean being able to get a decent living wage. Fast Company Staff Writer Pavithra Mohan joined us to unpack it all. For more on this, check out Pavithra's reporting (www.fastcompany.com/91107302/...) .
Then we chatted with Lyft (ride.lyft.com/) CEO David Risher about taking over the company after cofounders Logan Green and John Zimmer left a year ago, having to lay off more than a quarter of the company’s workforce last April, and focusing on his key strategy: “customer obsession drives profitable growth.” We also discussed the company’s future in Minneapolis, whether self-driving cars will transform the industry, and what Risher learned heading up U.S. retail at Amazon under Jeff Bezos.

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Fortunately we are at a point where technology and even robotics will enhance the fast food industry and eliminate the need for expensive human labor, offsetting the impact of government mandated minimum wage increases. Some smaller chains like Steak & Shake have already slashed staffing positions by replacing human order-takers with in-store kiosks. Soon enough we will see additional automation for food prep as well. As far as ride sharing, Tesla's plans to create self-driving taxis will eventually impact Lyft and Uber by presenting the consumer with more cost-efficient transportation that's also safer due to elimination of ride-share crime.

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Government manipulation of wages accomplishes nothing because the cost of labor is quite quickly offset by the inflationary pressure that follows. In reality, it actually reduces the quality of life for seniors on fixed income, because they have to weather inflation without the benefit of wage increases. Inflation erodes the purchasing power of money, leading to higher prices for goods and services. Inflation affects everyone in the economy, not just wage earners.