In recent years, Americans have been hit with rapidly increasing fast-food prices, causing a strain on many households. The surge in prices is not merely a reflection of normal economic trends but rather the consequence of policy decisions and government spending under the Biden administration and progressive state policies, notably in California.

Since President Biden took office, there has been a significant increase in federal spending aimed at stimulating the economy. The influx of government funds has led to inflationary pressures that have rippled through various sectors, including the fast-food industry. The increase in consumer demand, fueled by stimulus checks and expanded unemployment benefits early in the Biden administration, has collided with supply chain disruptions, creating a perfect storm for price hikes.

Adding to the pressure, California’s recent decision to raise the minimum wage for fast-food workers to $20 per hour has had a pronounced impact on fast-food prices not just in the state, but nationwide. California often sets a precedent that influences policies across the country. Gavin Newsom signed California Assembly Bill 1287 into law, which includes a $20 per hour minimum wage for fast-food workers. It also created a fast-food regulatory council which has the authority to raise the industry’s minimum wage annually. And the labor movement responsible for advocating for that increase, say they will be back for even more. As businesses in the state adjust to the increased labor costs, they pass these expenses onto consumers. This domino effect has contributed to the national surge in fast-food prices, making what was once an affordable meal option for many families significantly more expensive.

The impact of these policies is evident in the numbers. According to the Bureau of Labor Statistics, the cost of fast food has increased by more than 7% over the past year, outpacing the general rate of inflation. Popular items from major chains like McDonald’s, Taco Bell, and Burger King have seen price hikes that are difficult to ignore. The price of a Big Mac has jumped by nearly 10% since last year, and value menus are shrinking as items that once cost a dollar now approach two dollars.

These policies overlook the real-world impact on everyday Americans. The increased cost of living, exacerbated by rising food prices, is hitting lower and middle-income families the hardest. For many, fast food represents a convenient and affordable meal option, and as these prices climb, the financial burden grows.

The ripple effects extend beyond the immediate increase in fast food costs. Higher wages for fast-food workers set a new baseline for other sectors, potentially leading to broader wage inflation. Higher wages are beneficial for workers, but without productivity gains, these costs are ultimately transferred to consumers. 

The surge in fast-food prices in the US can be traced back to a combination of aggressive federal spending under the Biden administration and progressive state policies such as California’s minimum wage hike for fast-food workers. These decisions, aimed at economic recovery and wage fairness, have unintended consequences that strain the budgets of everyday Americans. As prices continue to climb, it remains to be seen how policymakers will address the economic pressures facing consumers without exacerbating the inflationary trend. There is no end in sight.