In April 2024, California implemented the FAST Act, which increased the minimum wage for fast-food workers from $16 to $20 per hour. Firms reduced hours, limited hiring, and substituted capital for labor.—callmatters.org The Questions What is FAST Act and what does it do? How has FAST Act changed the quantity of labor demanded in California’s … Continue reading California’s $20 Minimum Wage: More Applicants, Fewer Jobs
Category: MIT3
How Governments Influence Markets
Keywords: Price floors and ceilings, Taxes, Subsidies, Quotas
Parkin 14e Chapter 6
Bade-Parkin 9e Chapters 7, 8
Parkin-Bade Canada 11e Chapter 6
Parkin-Bade Australia 2e Chapters 7, 8
Parkin-Powell-Matthews 11e Chapter 6
Fast Food Wage Policy
In California, the FAST Act set the minimum wage at $20 per hour for fast-food workers.—calmatters.org
The Strait of Hormuz and the Global Oil Market
War in the Middle East has severely reduced tanker traffic through the Strait of Hormuz, a route that carries about one-fifth of the world’s oil, raising fears that Iran could close the vital oil shipping route. —bbc.com
Minimum Wage Rise Risks Job Cuts and Inflation
The Isle of Man plans to raise the hourly minimum wage from £12.25 to £13.46 in April. A Chamber of Commerce survey found that 21% of firms may cut staff and 8% may freeze hiring. Prices are expected to rise too.—bbc.com, The currency of the Isle of Man is the Manx pound, which shares the … Continue reading Minimum Wage Rise Risks Job Cuts and Inflation
Tax Cuts in India
On September 29, 2025, life-saving drugs will become tax free in India and the goods and services (GST) tax on discretionary items like TVs will drop from 28% to 18%.—bbc.com
EV Buyers in the U.S. Get Tax Credit Until September 30
The government has granted a tax credit to buyers of new EVs up to $7,500 for binding contracts signed before or on September 30.—npr.org
The 25% Tariff on Cars
The 25% Tariff on Cars In a Proclamation, “Adjusting Imports of Automobiles and Automobile Parts into the United States” issued on March 26, 2025, President Donald Trump announced the imposition of a 25 percent tariff on imported cars and auto parts to be effective from April 2, 2025. During a call with the CEOs of … Continue reading The 25% Tariff on Cars
New York Rings in the New Year With a Pay Bump for Minimum-Wage Workers
The minimum wage rose to $16 in New York City and in the rest of the state the new minimum wage is $15. This recent pay bump is part of an agreement made last year between the Governor and the state Legislature, over the objections of some employers.—apnews.com
U.K. Alcohol Tax Changes
The U.K. government announced last week that alcoholic beverages will now be taxed based on their alcohol-by-volume (ABV) level. While most wines and spirits will rise in price, prices will fall on drinks with lower alcoholic percentages, as well as most sparkling wine.—theguaridan.com
New York City Sets Minimum Wage for App-Based Delivery Drivers
Starting in July, the more than 60,000 delivery people in New York City will make almost $18 an hour before tips. By 2025, that’ll increase to almost $20 an hour. Right now, delivery workers make about $7 an hour before tips. Grubhub and DoorDash warn of “adverse” or “unintended” consequences.—marketplace.org