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How will small businesses fare with California’s $20 fast-food minimum wage that benefits the working class?

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California’s $20 fast-food minimum wage is a topic that has sparked a lot of discussion and debate. While many see it as a boon to the working class, others are concerned about how small businesses will fare under the new regulations. One recent news story that highlights this issue is the story of Justin Foronda, a second-generation entrepreneur who has been able to thrive in Los Angeles despite the challenges he faces.

Born and raised in Historic Filipinotown, Foronda opened Hifi Kitchen in 2019 and has managed to keep the doors open during the economic disruptions caused by the pandemic. His creative approach to running the restaurant, including hosting events and offering new specials, has earned him a loyal following on social media and kept the business afloat. However, with California’s new minimum wage for fast-food workers coming into effect, Foronda is starting to feel the strain.

Foronda supports a higher minimum wage and tries to pay his employees generously, but the rapid increase in wages is putting pressure on his business. As the cost of ingredients and other expenses fluctuate, small business owners like Foronda are left grappling with how to stay afloat in an increasingly expensive market.

The new minimum wage is an important step in addressing income inequality in the state, particularly for fast-food workers who are often women, immigrants, and minorities. However, it also poses challenges for small businesses that rely on entry-level workers. With increased labor costs and other expenses, many small businesses are being forced to make tough decisions about pricing and operations.

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Experts like labor economist Michael Reich point out that while big fast-food chains can absorb wage increases by adjusting prices, small businesses don’t have the same luxury. The new wage laws are creating additional stresses for businesses already struggling to survive in a competitive market.

Chris Tilly, a professor of Urban Planning at UCLA, emphasizes the importance of grassroots businesses in communities and the role they play in shaping neighborhood identities. These small businesses are essential for creating vibrant and diverse communities, but they are also among the most vulnerable to economic changes.

As California moves forward with progressive policies like the $20 fast-food minimum wage, it is important to consider the impact on small businesses and find ways to support them. Programs like special loan funds and simplified permitting processes can help small businesses thrive in high-rent urban areas, as seen in Berkeley.

Ultimately, the goal is to create an economy where operating a small business is viable for entrepreneurs like Foronda. While there may be challenges and adjustments along the way, the hope is that a high minimum wage will benefit not only fast-food workers but also local businesses and communities in need.

As Foronda navigates the challenges of running his restaurant in the face of rising costs, he remains focused on his goals and the impact he can make in his community. With resilience and determination, he continues to push forward, hoping to celebrate milestones like his restaurant’s anniversary and Filipino American History Month.

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Is now the right time to invest in gold as prices have cooled?

Now may be the time to buy gold following a recent lull in its price.

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The price of gold has climbed to record highs recently and has remained strong through much of April. And, that growth continued until the precious metal traded at around $2,390 per ounce on April 19, 2024. But since, growth in the price of the precious metal has cooled, with gold’s price now hovering around $2,300 per ounce.

This lull in gold’s price may represent an investment opportunity.

In general, investing is centered around buying assets when prices are low and selling them when prices are high – generating a profit on the difference between the two. So, considering the declines in gold’s price over the past few days, now may be the time to make your investment. But is buying gold during this lull in prices really a good idea?

Compare your gold investment options among leading brokers now.

Gold prices have cooled. Should you buy in now?

With gold’s price down from recent highs, you may be wondering if now is the right time to buy in. There are several reasons the dip in gold’s price may represent an opportunity to buy. Here are some of the biggest:

Prices may rise again

If looking at a gold price chart shows anything for certain, it shows that changes in the overall growth of the medal come in fits and spurts. Periods of price growth are typically followed by periods of declines and vice versa.

But with inflation rising in recent months – and with gold’s reputation as a safe-haven asset that can hedge against inflation – it only makes sense that the price of the precious metal will eventually start to head up again in the future. While attempting to time that directional change may be tricky, buying the precious metal while the price is down gives you the opportunity to take advantage of any upward movement that may be ahead.

Add gold to your portfolio now before prices have a chance to rise.

You may be able to make a quick profit

Gold isn’t known as an asset in which you can earn a quick return, but in today’s market, that may be the case. Don’t forget that in January, gold was trading at just $2,000 per ounce. And, by mid-April, the commodity’s price had climbed to around $2,400 per ounce. That’s about 20% growth in a matter of months, much of which happened since March 1 – an impressive climb for any investment asset.

Perhaps more importantly, gold’s price growth through the beginning of 2024 shows that the commodity doesn’t have to be a buy and hold style investment that you keep in a safety deposit box or precious metal depository for years to come. There’s also the possibility that the commodity’s price could climb further ahead, making it a compelling way to potentially generate a quick profit.

There are other benefits of investing in gold

There are other benefits of investing in gold that have little to do with the price growth seen thus far in 2024 – or the lull in prices seen over the past couple of days. Those benefits include:

Inflation protection: Gold has long been considered an inflation hedge, and for good reason. When inflation drives the prices of consumer goods and services up – and the value of the dollar down – gold’s price tends to rise. So, it could be used to maintain the value of your portfolio during inflationary economic conditions. That’s important in today’s economic environment as stubborn inflation continues to weigh on the value of the dollar.
Portfolio diversification: Gold’s price doesn’t always move in the same pattern that bonds or stocks do. So, mixing a reasonable amount of gold into your portfolio (up to 10% of your portfolio assets) as a diversifier could protect you from losses should one or more of your traditional portfolio assets fall in value. “If you have less than 5% – 10% of your net worth in commodities & FX (forex), you should absolutely consider adding exposure to gold and other precious metals,” says Vijay Marolia, money manager and managing partner at the wealth management firm, Regal Point Capital.

The bottom line

Gold’s price has fallen from recent highs – which may represent an opportunity to tap into growth ahead. However, gold isn’t simply a “buy while it’s low and sell while it’s a high” kind of investment opportunity. The commodity can also protect your portfolio from the stubborn inflation we’ve seen thus far in 2024 while acting as a diversification tool that could increase your risk-adjusted portfolio returns. So, consider adding gold to your portfolio today while it has the potential to grow in value.

Joshua Rodriguez

Joshua Rodriguez is a personal finance and investing writer with a passion for his craft. When he’s not working, he enjoys time with his wife, two kids, two dogs and two ducks.