Posted on 08/15/2015 6:24:18 AM PDT by SeekAndFind
California has embarked upon a dangerous experiment. The Democrats who secured total control of the statehouse have been the most productive group of legislators at passing bills in the last 50 years. Most of these bills were passed stealthily to avoid media scrutiny. The last minimum wage hike was rammed through without much media attention. The same with the Sick Leave Law that went into effect in July of 2015.
These two new costs, when combined with the federal ACA have increased the cost of labor roughly 35% overnight. None of these assaults on California businesses were sensibly staggered, nor was the business community even consulted. It’s as if the feeling that exists under the Capital building is a childlike free-for-all to greedily get as much vote-buying, pro-labor legislation in before the window closes.
And now comes SB3, which is to amend the last minimum wage and take it higher, much much higher, for the entire state. Instead of the minimum wage going to an already predetermined $10/hr in January, it will instead take it to $11/hr and then in 2017 to $13/hr, after which it will be attached to an ongoing CCPI increase, and eventually closer to their arbitrary and subjective, fairy dust idea of a $15/hr 'living wage'.
There are, of course, many enormously debilitating problems with this.
1) Interstate arbitrage.
First, since we are no longer a buy local economy, and increasingly consumers' buying habits are performed online, Amazon, Target, and Wal Mart will move all their distribution centers out of the state to a low-cost state like Arkansas. As the costs for everything in the state begin to soar, California consumers will look outside the state for both discretionary spending as well as non-perishable consumer goods; things like toothpaste, blenders, shower heads etc.
(Excerpt) Read more at americanthinker.com ...
Retail will be destroyed. As the arbitrage previously mentioned accelerates when costs inevitably rise, vacancies will increase as businesses close.
As the cost of goods go up (they already have due to this last wage hike) in Wal Mart and Target and most big box stores, those hurt the most are renters, whose landlords must increase rents in a cascading effect as all asset and commodity cost prices must rise.
The elderly on fixed incomes or SSI will also be crushed in the wake of inflation.
This will lead to incentivizing businesses to either leave the state or automate, and California already has a higher national unemployment rate than the nation as a whole. Not good.
Legislators will look like heroes even while they are destroying society by liquidating government debts via inflation on the very backs of the people they pretend they are helping.
They are trying to fight the weight of immigration on wages, all they are doing is killing jobs and hurting the lower middle class.
They need to stop illegal immigration. They just don’t want to.
We are seeing the DECLINE of a once great civilization (and I use the word deliberately ) right before our very eyes.
The Democrats who secured total control of the statehouse have been the most productive group of legislators at passing bills in the last 50 years.
Well there’s your problem right there.
Yep, the problem is this — most people confuse PRODUCTIVE with being GOOD for the state.
Stalin and Mao were productive policy makers. Look what that did.
If $10/hr is already an illegal immigration magnet, how will it be at $15/hr..?
NO teen will have a summer job.
The elderly on fixed incomes or SSI will also be crushed in the wake of inflation.
And there is a reason for all of this and it is a simple equation:
Increased minimum wage = price inflation
price inflation = monetize the federal debt
And that is why there is a push for an increase in the minimum wage across the board.
Retail will be destroyed.
That pre-supposes a closed economic system and captive customers. In fact, some business can't raise prices - many of their customers can't afford the higher prices, or they can buy cheaper elsewhere.
Toyota and Nissan could have stayed in California, but they didn't have to.
U Haul is about to make another killing.
Several years back, a lot of the Uhaul trucks here in Texas had Arizona tags. Rental rate going back to Arizona was very cheap.
“If $10/hr is already an illegal immigration magnet, how will it be at $15/hr..?”
The Min wage in Mexico is $5.....a day!
No problem. Merely set up tariffs for incoming products. Unconstitutional? So what. I’m sure the inter state commerce clause is old stuff.
The immigrants don’t work for “legal” wages. So this hike will increase illegal immigration. Legal residents and citizens will either get jobs at the higher rates or be unemployed and on welfare. The illegals will work off the books and cheaper and fulfill the demand for cheaper labor.
The unions understand this even if their idiot membership does not.
The illegals act as a tool to terrorize citizens who must depend on the politicians for their welfare and protection. The illegals also provide political power via congressional apportionment. The illegals children are citizens who are legal and vote
Huge win for the dems.
don’t confuse me with facts; my mind is made up....
That's why leftists hate federalism and want the federal government to be in charge of everything. If there were no federal minimum wage law, CA wouldn't have even consider raising theirs. Now that there is one, CA is free to raise their wage, and then the media will report it, and start criticizing red states for not raising their minimum wage.
Every leftist policy from CA or another lib state creates a domino effect and exerts pressure on the other states to be "more like them."
shower heads etc. —
That wouldn’t be ‘unregulated’ shower heads, would it?
California - “How to force the self deportation from your state of Conservatives 101”
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