Posted on 12/29/2016 6:08:12 PM PST by BenLurkin
Last month, Competitive Edge, a San Diego communications firm, announced that it was moving 75 call center jobs to El Paso, Texas because of the costs of the minimum wage hike. In the Bay Area, San Francisco Eater reports that restaurants continue their year-end “death march” with dozens of closures, many of them at least partially a result of dramatic minimum wage increases. Book stores have been particularly hard hit, with local favorites like Black Oak Books (Berkeley) and Almost Perfect Bookstore (Roseville) closing because of cost increases.
Earlier this year, Adam Ozimek, an economist at Moody’s Analytics, calculated that 600,000 California manufacturing jobs paid $15 an hour or less. He said 31,000 to 160,000 jobs could be lost under the new minimum wage rate.
Proponents at the union-backed Center for Labor Research and Education at the University of California, Berkeley have argued that a $15 policy could generate savings for taxpayers. But their claims fall apart when you dig into the methodology. For instance, it doesn’t account for the reduced job opportunities that Gov. Brown and the vast majority of economists warn about. By this logic, why not raise the minimum wage to $30 to generate even more positive economic benefits? The answer, of course, is that it would cause widespread job loss. Same story with a $15 minimum wage.
Even setting aside the offsetting effects of job loss, the claim of minimum wage savings for taxpayers is dubious. According to California’s Department of Finance, the $15 minimum wage will cost the state at least $4 billion as tens of thousands of government employees get raises from the mandate and program expenditures adjust upward.
(Excerpt) Read more at ocregister.com ...
I’m beginning to believe that there is a vast left wing conspiracy in California to drive out normal rational people. The remaining Hollywood, Tech, and Gov’t people will be able to rule over their welfare slaves from Mexico that will provide their laundry, gardening, maid, chauffeur, normal and kinky sex, etc. services ... a virtual Socialist Utopia!
Keep doing it. You will self destruct eventually. By the way, where is that secession movement. PLEASE do it!
Secede from the USA, California...Then you can raise the minimum wage however high you want it...LOL
“the $15 minimum wage will cost the state at least $4 billion as tens of thousands of government employees get raises from the mandate and program expenditures adjust upward”
The money quote.
L
And pay everybody in Peso's with Jerry Browns' face on them.
But just think! Those who survive the purge will have more money to spend on some really gnarly tattoos, dude!
This will mean less people on the freeway as more people end up unemployed.
For $15/hr I’d be leaving Mexico too.
The problem is that they are all infiltrating other states. We have loads of Californians in Austin and they are starting to ruin the place.
Isn’t the California state retirement program in trouble? Cops, teachers, etc?
CALexit 2018
every patriot should support
I’ve been seeing some restaurants close or changing management here in the SF Bay Area. All the prices are being change skyward in anticipation of the minimum wage hikes. Result, few customers.
Sorry Texas Colonel, all those politicians and democrats keeping Austin weird ruined the place. The Californians are just crowding it up, someone forgot to tell them “Don’t Mess With Texas”!
I have rental property in San Jose...some of which I live in.
Am waiting for the right moment to cash out and find a better place.
I was born here, and it was wonderful back in the day.
The quality of life has crashed into the rocks.
I will leave with enough to begin again somewhere else.
Not sure about the premise, the California minimum wage goes from $10.00 to $10.50 in 2017.
Fifteen bucks doesn’t happen until 2022.
Anybody who’s closing now is doing so because they can’t handle a five percent labor cost increase.
The min. Wage in CA. Goes up to 11.00 an hour Jan. 1 and a dollar a year until 2021 when it reaches 15.00 an hour!!!
You must also realize that it is NOT just the dollar an hour involved here, workers comp ins. Is according to payroll dollars paid so that goes up, also businesses MATCH payroll taxes paid so that goes up also!!!!
In the long term, it will reduce the number of jobs in areas such as fast food. Companies such as Carl’s Jr. and McDonald’s are already experimenting with kiosks where customers order and pay. Thus eliminating the counter person and other positions. McDonald’s has at least two such restaurants in San Francisco testing the technology. So, for the people who clamored for $15/hour, some will be out of a job anyways.
Anyone remember when working at a fast food restaurant was the domain of students? And not a person from south of the border with 5 kids and no job skills?
I think it’s great!
California as a giant petri dish.
We can all watch and learn.
Let’s see what happens!
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