Last Tuesday during President Obama's State of the Union address, fast-food workers and their fellow minimum-wage workers were an important topic. Obama called for the minimum wage for federal workers to be raised from $7.25 an hour to $10.10 an hour. He also called for an increase in the minimum wage across the country, a move that would help people in the restaurant, construction and retail industries (among others) to make a "living wage."
Photo by Andinarvaez Fast-food workers could soon be making more money.
But while many see a pay increase as a positive step toward reducing income inequality, the restaurant industry worries that operators will have to raise food prices to respond to the higher labor costs. The National Restaurant Association reports that a higher minimum wage could lead to more expensive food, fewer employees, a drop in the quality of food that is served and fewer franchises.More »