A recent analysis from the National Bureau of Economic Research (NBER) indicates that California’s decision to raise the minimum wage for fast-food workers to $20 per hour has resulted in significant job reductions in the sector. The study estimates a loss of approximately 18,000 positions in California’s fast-food industry since the policy took effect in April 2024, marking a 3.2% drop compared to similar sectors elsewhere in the U.S.
The researchers, Jeffrey Clemens, Olivia Edwards, and Jonathan Meer, concluded in their report: “Our median estimate translates into a loss of 18,000 jobs in California’s fast-food sector relative to the counterfactual.” This paper, released this month, is accessible via the NBER website.
The policy stems from Assembly Bill 1228, which California lawmakers approved in September 2023. Signed by Governor Gavin Newsom, it created a Fast Food Council empowered to set and adjust wages for the industry. Effective April 1, 2024, the bill increased the hourly minimum from $16 to $20 for fast-food employees, with provisions for annual adjustments starting in 2025.
According to the study, fast-food employment in California declined notably after the bill’s passage, with reductions estimated between 2.3% and 3.9% across various models. In contrast, the national fast-food sector saw a slight growth of about 0.10% during the same period, while other parts of California’s economy aligned with broader U.S. trends. The researchers noted that prior to the law’s implementation, California’s fast-food job market had been on a comparable trajectory to the rest of the country.
The findings have drawn criticism toward the wage increase. Rachel Greszler, an economic expert at The Heritage Foundation, argued in a Daily Signal op-ed that “wage controls never work” because policymakers cannot avoid the inevitable repercussions. She highlighted the fast-food sector’s outcomes as a cautionary tale, particularly for Los Angeles, which recently approved a phased minimum wage rise to $30 by 2028 for hotel and airport workers.
The Wall Street Journal’s editorial board dismissed the idea that large wage hikes boost the economy as “magical thinking.” They also critiqued New York City mayoral hopefuls Andrew Cuomo and Zohran Mamdani for advocating similar increases—$20 and $30, respectively—suggesting such proposals ignore real-world evidence.
However, representatives from Governor Newsom’s office challenged the study’s conclusions. Tara Gallegos, deputy director of communications, told Fox News Digital that the research is affiliated with the Hoover Institution, which she accused of previously disseminating “false or misleading information” about California’s wage policies that required retraction. She referenced an October 2024 San Francisco Chronicle piece that countered pessimistic forecasts about the wage hike, noting many originated from the Employment Policies Institute, a think tank tied to restaurant industry lobbyist Richard Berman, whom TIME Magazine once labeled “the wage warrior” for his long-standing opposition to minimum wage laws.
Gallegos further cited a February 2025 study by a UC Berkeley professor examining the $20 wage’s impacts, highlighting findings that suggest the policy’s effects have not matched the dire predictions. The report, available through UC Berkeley’s Institute for Research on Labor and Employment, emphasizes benefits for workers covered by the increase.
The Biggest Threat to Your Retirement Is Actually a Very Good Thing
When you look at the headlines today, you’ll see experts in the retirement industry warning about big threats to your financial security:
- De-dollarization and the rise of BRICS
- Soaring national debt
- Unstable interest rates
- Weakened U.S. dollar
All of these are real concerns. But they aren’t the biggest threat to your retirement savings. The true risk isn’t political, monetary, or global.
It’s longevity.
Why Longevity Is the Silent Threat
For most of human history, the problem was the opposite — life expectancy was short, and few people even reached retirement. Today, thanks to medical advancements, healthier lifestyles, and better living conditions, people are living longer than ever before.
And while that’s a wonderful thing, it comes with a financial catch: Your retirement account has to last far longer than you might expect.
- A 65-year-old couple today has a 50% chance that one of them will live to 90.
- Some projections suggest that many of us will live well into our 90s, even 100+.
- This means your nest egg may need to stretch not for 15 years, but 25, 30, or even 40 years.
That’s where the real danger lies: running out of money before you run out of life.
The Retirement Equation Has Changed
While market volatility, debt crises, or central bank policies may feel like the scariest threats, they’re temporary storms. Longevity, however, is a structural shift. Every extra year of life is another year of expenses, another year of inflation erosion, and another year of financial pressure.
If your retirement plan doesn’t account for longevity, you could face tough choices later in life — downsizing, working when you’d rather not, or becoming financially dependent on others.
How to Take Control
The good news? Longevity is a blessing — as long as you’re prepared for it. With the right planning, your retirement savings can work for you instead of against you. The key is learning how to protect your wealth, outpace inflation, and ensure your savings grow even as you live longer.
That’s why our friends at Augusta Precious Metals created a free resource to help you get started:
👉 Get Instant Access to the report, “How to Take Full Control of Your Financial Future”
This brief report will show you practical strategies to safeguard your retirement from the biggest threat of all — the one that comes from the gift of living longer.
Don’t let longevity catch you unprepared. Take the steps today to secure tomorrow.
