Of course. Democrats are not known for well reasoned and thought out legislation. Instead they rely on emotions and feelings to make THEM feel good about it.
https://reason.com/2024/05/29/calif...dy-having-disastrous-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, Michael Ojeda—a delivery driver who was laid off by the company—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.
https://reason.com/2024/05/29/calif...dy-having-disastrous-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, Michael Ojeda—a delivery driver who was laid off by the company—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.
