Is it a disaster if the CA commie voters don’t think it is?
In CA, objective reality doesn’t matter.
> Is it a disaster if the CA commie voters don’t think it is? <
Given that the mainstream media refuses to report on such things…
Is it a disaster if the CA commie voters don’t even know about it?
“In politics, perception is reality.” - Lee Atwater.........
They raised the minimum wage to raise pay for government worker, whose pay was negotiated by collective bargaining to be pegged to the minimum wage, so when the minimum wages goes up, they get a raise.
That was the real reason, they don’t care about fast food workers, or the public in general. It was all about more money for the unions.
“Is it a disaster if the CA commie voters don’t think it is?”
Calif politicians will just blame it on greedy corporations and about 60% of the voters will just nod and keep watching a formerly great state dismember itself.
1) It can increase prices.
2) It can attempt to increase the productivity of its current workforce.
3) It can accept a lower return on its investment.
4) It can try to make up the difference by compromising other aspects of it business.
Most likely, it will engage a combination of these strategies to offset the effect of the increase. Of course, the idiot politicians, who do not have an inkling of common sense when it comes to economic reality are completely oblivious to these effect.
A company is in business to create a return on investment. Even a cursory examination of the economic Einsteins on TikTok are under the impression that greedy corporations have plenty of money buried in their profits to pay their workers more money. But if your return on investment from all the risk and hard work invested falls below, say the level of the return on, say a ten year treasury note (in theory, a 'riskless') investment, then the rational business will simply liquidate and avoid the headaches and the risks.
Or they could attempt to raise prices. As someone else on this thread noted, market prices are determined by the marketplace, and not the inputs of production. Raising prices will effect market behavior. Where I live, a pizza from a pizzeria is over $25. Not long ago, it was around $15. I buy FAR fewer pizzas nowadays. Market reaction....
If a worker is paid $18 and hour, but only produces $9 of value per hour to the company, the company is losing $9 every hour he is on the time clock. No amount of legislation changes that basic fact. That worker has no value to the company, and the company will strive to get rid of that worker (and every other similar unproductive worker) and employ technology that will do his job better, quicker cheaper.
Finally, the business will try to economize in other aspect of the business. Lower quality, smaller portions, slower service, worse maintenance. Next time you buy a Big Mac, take off the top bun to see how big the beef patty is.
I am not sure how any of this improves the quality of the consumers and/or producers in our economy. Back in the day, fast food places competed to give better food, at better values and at higher convenience. Government regulations here, as they always do, just create a crappier experience for everyone.