Posted on 04/17/2016 7:00:11 AM PDT by Kaslin
My home state, California, has edged out New York to be the first state adopting a $15 minimum wage. Our Governor, Jerry Brown, gave the policy a full-throated endorsement. He stated “I'm hoping that what happens in California will not stay in California, but spread all across the country. It's a matter of economic justice. It makes sense.” If you know anything about California, you too would be in support of this righteous increase that more than doubles the national minimum wage.
How does anyone expect one to live on a measly $7.25 an hour? After all, this is not Des Moines. Have you seen the prices for things out here? Half the people cannot afford to live and the other half are driving BMWs.
First, let’s start with the cost of gasoline. When people come to visit us and we drive them somewhere, they are shocked by the signs at our ubiquitous gas stations. They want to know why our gas costs anywhere from $.80 to $1.25 more per gallon than theirs does at home. We tell them “My God, this is California; what do you expect? We have our own gasoline blends for every season. It is to protect our environment.” Even when the country was awash in gas and prices were plummeting below $2 per gallon, we had a shortage that spiked our prices. But it is all good because we get to live in California. How is a person making what people make in Baton Rouge supposed to pay for our gas?
Then there is the cost of electric power which is 50% higher in California than the national average. But it will not be for long. Because our wise elected leaders including Governor Brown put into law a requirement that 50% of our energy comes from “renewables” by 2030. Forget that the price of natural gas and oil has plummeted and new supplies have been found that will last for generations; we have to think about global warming. We can bear the cost of doubling our electricity rates. And the good part is we will have those nifty-looking windmills everywhere. How does a person afford this excellent electricity making what people make in El Paso?
Of course, there is the cost of housing. The 12th Annual Demographia Housing International Affordability Survey for 2016 ranked four California cities (San Jose, San Francisco, Los Angeles and San Diego) in the top ten least affordable cities in the world for middle class housing. Four in the top ten for housing costs in THE World. That is fairly astounding. This obviously has nothing to do with government controls, rent control, government fees or restrictive development policies by urban planning imps or any of Governor Brown’s policies.
A friend of mine’s son rents a small studio apartment in San Francisco for $3,200. The soaring housing costs have caused the Black population to plummet in San Francisco from 14% to 6%. That is the smallest percentage of Blacks in the 14 largest U.S. cities except one: San Jose has only 3% black population. The government policies, of course had nothing to do with this development. With these housing costs how would you expect anyone to live on the same wages as Savannah, Georgia?
Other states may have a higher poverty rate, but that is before there is an adjustment for the cost of living. When the adjustment is made for the cost of living, California has the highest average poverty rate from 2010-2014. The 23.8% living below the poverty line in California exceeds every state except the District of Columbia (included in the study) at 22.7%. Mississippi has the highest poverty rate, but once you adjust for the cost of living it plummets to 16.1%. When that many people are living in poverty, either you must hand them out government money or have their employers’ increase their wages.
What we see is that all Californians will now be able to support themselves without government handouts. Between the increased tax revenues and decreased welfare costs, taxes on everyone will significantly decrease. Thus, we are sure Governor Brown will be able to call for a cut in the state tax rates. Since California has the second highest combined tax burden after New York, that will help to attract a lot of new people to the state.
The important thing is businesses can absorb these increased payroll costs. You may want to remember that all payroll will be going up. For instance, now with the new pay rate people making up to about $62,400 per year will be subject to California overtime rules which are eight hours per day and 40 hours per week. Everyone will share in the new benefits.
When business owners let their customers know that the 20-25% increase in their meal at a restaurant will be going for such a good cause (lowering the poverty rate), the selfless residents of California will heartily pony up the additional money. When people care about each other like we Californians do, this will work out.
It will be so delightful when you go to a McDonald’s and will not have to face those annoying, cheerful, young faces greeting you and asking for your order. Instead you can choose your own food from a tablet at the counter, swipe your debit card and then have Robot Rob deliver it to you. Who wants all that human interaction ordering a McMuffin?
Now that you have some perspective, you must agree that a $15 minimum wage is responsible. No one can live on these current wage levels. After all, have you seen the price of a Martini on Sunset Boulevard? It is at least $15 and that is for a well or generic label. Can you imagine how much it is with Absolut? How is a person supposed to support themselves on these wages with these prices?
I talk with alot of regular non political people and the one thing most of them have in common is they support the $15 minimum wage. These are not all Bernie backers, either. Their argument usually falls along the line of “well, these rich CEO’s can afford to give workers a raise.”
The level of economic ignorance in this country is astounding
Moonbeam, and the rest of the liberal fools, on their normal path of destruction -— without any concern for consequences. It is about power and control, buying votes, and cementing their place in the once-great state of Taxifornia.
Actually, there is no $15 minimum wage at present. It is being phased in at a time rate that will allow repeal if things go wrong as evidenced by the apparel co moving from LA
Political weakness has forced the leaders of dying California and NY to take political positions that are detrimental.
“Half the people cannot afford to live and the other half are driving BMWs. “
Thank QE for that.
‘He stated “I’m hoping that what happens in California will not stay in California, but spread all across the country.’
Oh, guaranteed. What’s been happening in California, namely for-profit business, won’t stay in California - businesses will trip all over themselves to get out of the state and go someplace - anyplace - else.
Unfortunately, they just don’t get it out there, so employees who move will do their level best to bring their economic delusions with them.
These “regular non political people” must be thinking they haven’t been taxed enough already (i.e., not Tea party).
Just a few years back, the 47% number must have jumped quite a bit .....
It’s long past time to eliminate the min wage completely. Let the market decide what non-skilled workers deserve. If you can’t live off non-skilled wages, then get off your duff and learn a bleepin’ skill. A trained monkey can flip burgers and be just as sanitary as most of the human burger flippers.
look at Brown’s pic above. see how weird his right jacket collar looks? whats up with that?
And .. the garment industry in LA is leaving the state; because they cannot survive with that high a wage.
Hmmmm ..?? The state has already lost over 4 million people; probably conservatives, because that’s why I’m leaving.
What really makes me laugh is that illegal aliens are coming to California and will get $15 an hour. Ha Hahah
It is obvious from the economic policies we see coming from gov’t, and especially CA, that our politicians have the economic IQ of dust.
California can do what it likes just so long as the rest of the country is not expected to bail them out when, not if, they go bankrupt.
These “regular non political people” must be thinking they haven’t been taxed enough already (i.e., not Tea party).
Actually, they believe the “rich CEO’s” will pay it
I know. You see what we’re up against?
Those $5.00 Mickey D cheeseburgers just won’t taste the same as the 69¢ ones.....
Should raise it to $3000 an hour.
Newsflash. Those rich CEOs will still be rich no matter what is set as the minimum wage.
You are right, The level of economic ignorance in this country is astounding
What about the poor fool who is making just above $15 per after years of dedication to their employer and hard work - surely they will get a $7 raise the instant the $15 minimum kicks in. Otherwise those years of hard work were a big fat waste of time and effort.
So those regular non political people think it’s OK for an unskilled entry level worker to make as much money as a someone who went to the trouble of learning a skill or trade?
Newsflash. Those rich CEOs will still be rich no matter what is set as the minimum wage.
You are right, The level of economic ignorance in this country is astounding
Hey, I’m on board with you. The most common word I hear is “fairness.”
I’m really beginning to hate that word
Any and all minimum wages should have been declared unconstitutional by the Supreme Court as they were initiated. Along with businesses reserving the right to refuse service to ANYONE for ANY REASON.
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