California turns to minimum wage hikes to offset high living costs. There’s a downside

California faces the nation’s highest cost of living, with rents 53% above average and a 900,000-person out-migration since 2015. The state has responded with minimum wage hikes, including a $20 fast food wage, but debates persist over whether these measures raise prices or reduce employment. Housing construction remains stagnant at 100,000 units annually despite policy changes.