Posted on 05/29/2024 1:43:15 PM PDT by nickcarraway
Many have seen their hours reduced—or have lost their jobs entirely.
California now leads the nation in imposing dumb wage laws.
The state just raised the hourly minimum wage for fast food workers to $20.
Gov. Gavin Newsom said, "We saw the inequities….We had a responsibility to do more."
Unions pushed for the higher minimum, and in Democrat-run states, unions usually get what they want.
CNN announced, "Half a million California fast food workers will now earn $20 per hour."
Gullible leftists at the Center for American Progress claim, "A higher minimum wage would boost millions of families out of poverty and further stimulate the economy."
Yippee! It's a happy cycle! Win-win.
But wait, if it's win-win, why just make the minimum $20? Why not $30? Or $100?
Because government requiring higher wages is not a win-win.
Interfering with market prices always creates nasty unintended consequences.
Frederic Bastiat, in his work "That Which Is Seen, and That Which Is Not Seen," points out that there are always seen and unseen consequences when government force impacts economic decisions. "Almost always," he wrote, "the immediate consequence is favorable, the ultimate consequences are fatal."
In this case, the immediate consequence is that existing workers get a raise. Great. That's the seen. That's what the media, unions, and Center for American Progress see. But the unseen effect is bigger, and worse:
No. 1: Thousands of Californians have already lost jobs because some restaurants closed. Others lost income because their employer cut worker hours. The chain El Pollo Loco cut employees' hours by 10 percent.
Pizza Hut announced that they will lay off more than a thousand delivery drivers. One such driver, Michael Ojeda, understandably asked, "What's the point of a raise if you don't have a job?"
No. 2: Workers who still have jobs will lose them because now their employers have more incentive to automate. Chipotle just created a robot that makes burrito bowls. Even CNN acknowledged, "Some restaurants are replacing [fast food workers] with kiosks."
No. 3: Prices go up.
The day Newsom signed the bill, he was asked, "Can Californians expect the prices of their McDonald's and Starbucks to go up?"
Newsom deceitfully replied, "I've heard that rhetoric before. And it didn't happen!"
Nonsense. It did happen. It always happens when government forces wage increases. In this case, Starbucks prices have increased as much as 15 percent. Customers will pay about $200 per year more for their coffee. A chicken burrito at Chipotle will cost up to 8 percent more.
No. 4: Perhaps the worst unseen harm from minimum wage laws is that young and unskilled people won't even be hired. They won't gain valuable experience from a first job at a fast food restaurant.
In 2014, when Seattle politicians raised the minimum wage to $15, I asked some teenagers what a higher minimum wage could do for them.
"Minimum wage actually hurts my chances of getting employed," said one, Rigel Noble-Koza. "If I cost more, why would a company take a risk on hiring me? They'll hire the worker with more experience instead."
Another, Dillon Hodes, talked about his friend who had fast work but got her hours cut because "she was young and inexperienced."
Of course, these students were unusual. They were finalists in a Stossel in the Classroom contest. They are not economically ignorant. They knew to look for the unseen.
If only politicians were that smart.
Government price fixing like minimum wage laws hurt the young and the poor, the very people these laws are supposed to help.
Totally predictable consequences — possibly not unintended.
Meh. Regardless of how bad things get, they’ll either move to another state and vote Dem, or if they can’t move, they’ll stay put and vote Dem.
Government can mandate all the rules they want on companies, but the cannot mandate rules on customers such as you must buy something from the company…… that’s the problem…….
The disasterous effects are obvoius and immediate, yet zero discussion to rid the requirement.
“Yes, yes, we know you’re suffering, suck it up, we’re chaning nothing”
Well put.
Definitely intended.
I will not be eating at Panera Bread anymore.
*Newsom deceitfully replied, “I’ve heard that rhetoric before. And it didn’t happen!”
Nonsense. It did happen.*
He answered the question. There is no need for an honest answer to these people. By answering he did his job just by making himself available. Followup? They’re above that and they won’t feel the need to say it when the MSM has their back.
You’ll never corner these people. They’re very well trained.
Too bad they didn't go bankrupt over that.
Like an Ayn Rand novel. Soon they’ll make it illegal to terminate without cause. They will mandate the number of employees a business must have. They’ll mandate how many hours they must work. Then, when prices go up, they’ll institute price controls. They’ll keep regulating til the buildings are empty smoldering hulks.
Then they’ll get reelected.
As always, the true minimum wage is zero.
I wonder if you can finance a Tesla Optimus Humanoid robot for less than $200 per day.
The consequences are not “unintended.”
Customers will pay about $200 per year more for their coffee.
Giving up the daily Starbuck coffee could translate into having money for a weeks worth of groceries.
progressive leftists NEVER EVER consider the economic realities of socialism before dictating terms to businesses that are affected by the legislations they foist on everyone but their cronys. and even their cronys better backwatch. “economic realities are anathema to the leftist” L.Star
I know friends in Florida who are going naked for their house insurance. Those without a mortgage are not required to have insurance, may be an issue with the rich (liability coverage concerns) but they also have LLC's. Anyway the high cost of home insurance in Florida has driven some to forgo a policy.
And your example of what high regulation does and how companies respond with government mandates such as car or house insurance requirements.
Guess restaurants need to get their politicians to pass mandatory eat at restaurant rules!
If you vote for Biden & Newson, then you get more of the same old crap.
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