California fast-food workers’ minimum wage win stirs up old economic debate

Business groups claim hard-fought $20 hourly wage victory will cause reduced hours, layoffs and price hikes - critics say otherwise

As fast-food workers celebrated a pivotal wage increase to $20 an hour in California last week, an old economic debate was awakened by business groups and others claiming the increase will wind up hurting workers through reduced hours and layoffs, hurt customers with price hikes, and harm the franchise owners of fast food restaurants.

Their critics are not so sure.