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California’s runaway one-party state goes from one disastrous legislative session to another where anything enough leftists back becomes law.
With the state already bleeding small businesses, the $20 fast food minimum wage hike is another bomb tossed at an industry that barely survived the pandemic lockdowns, which shut down a lot of fast food joints while protecting big businesses. In an economy with soaring food prices and reduced consumer spending on eating out (among working-class and lower-middle-class people), the business model doesn’t work and is just leading some places to shut down.
The Fosters Freeze shutdown made the news because it was so public, but it’s hardly alone.
Restaurants will raise prices where they can, but people are already reeling from high places, and eateries were already pumping prices higher to compensate for rising labor costs, food costs, materials costs, and everything else.
And people can only pay so much.
A lot of places are compensating for the minimum wage price hikes by cutting back hours which leaves workers right back where they started, if not even further behind.
Others are closing down and leaving workers with nothing.
So who benefits from this? The Cloward-Piven leftists who use minimum wage hikes to ‘smash capitalism’, shuttering businesses and putting more people out of work.
From the leftist perspective, the goal is to create union jobs, not jobs, and to hurt businesses in order to create a new kind of social economy.
Middle-class franchisees are the problem. Take them out and you take out upward mobility. Then you can segregate the economy into the upper class and the working class. And then wage class warfare.
Gov. Gavin Newsom is just the smirking wine-country face on top of the traditional leftist agenda that is trashing California.
The Democrats won’t stop until there is a permanent one party national government. That generally leads to dictatorship.
AA, a one-party national government does not merely lead to dictatorship – it IS dictatorship.
Hm. Here in San Jose, workers make $15.45 as a measly minimum wage and it’s set to go to a very slightly less measly $16.20. In the same Santa Clara valley, Mountain View and Sunnyvale will have theirs go from $16.30 to $17.10.
And yet life goes on. The economy hasn’t collapsed. In-N-Out Burger pays over $20. an hour as a starting wage for burger flippers and that place can’t even handle all the business it gets. It’s drive throughs are interminable but we all wait because the burgers are so good. AND IT HAS THE CHEAPEST BURGERS AROUND! The crappy burger places like Burger King and Jack in the Box used to have dollar menus pre-Beijing Biden but those “burgers” were sliders and taste like shit.
It’s a conservative fallacy that higher wages lead to closures and economic ruin. Every area with higher than average minimum wages is more successful than the parsimonious areas around them. The stories of closures here in Caalifornia are lies. Only placed which were doomed to close anyway have closed, due to poor sales and Dirtbagocrat crime, not insignificantly higher wages.
I’d like to see one of you Scrooges live off $20. an hour. You can’t even cover your nut with a wage that miserly.
Very interesting and insightful post, JB. You make a compelling argument.
Thanks, big guy!
Nine downvotes. Ooh, I’m going to start crying.
$16.20 or $17.10 an hour is only $648. and $684. a work week. and $2376 and $2736 a month. Could any of you Grinches live off that without sleeping in your cars or on a park bench? Why should anybody else work for peanuts like that and be a burden on their family or friends? Not even wet backs deserve to be treated so poorly. And unlike most of you, I reckon, I actually know plenty of wet backs. Sure, they depress wages and steal jobs from real Americans but they had a choice between working for shit wages in Old Meheeco and working here for more and eating In-N-Out Burgers. What the fuck choice do we expect them to make? They’re human beings, just like us.
Go ahead. Try to live off $2736 a month or less. My only question is how could you disregard a fellow American forced to live like that? Or even a wet back?
And oh, yeah. There’s a Foster’s Freeze located on Fourth St just TWO BLOCKS FROM MY APARTMENT ON SECOND ST AND IT’S STILL OPEN!!!! LOOK IT UP! San Jose CA!!!!!
It stays open because people eat there and it hasn’t closed due to MUCH higher than normal minimum wages.
Any comments on that, you conservative economist wannabes? LOOK IT UP! YOU CAN SEE IT ON GOOGLE MAPS!
I’m going to buy a burger and ice cream just to stick it to you Grinches.
It would be best if you researched the Cloward-Piven Manufactured Strategy.
I look forward to sharing this with my Econ students tomorrow, I want them to understand trade-offs. I want them to understand “intentions are not results.” I want them to understand there is only one true minimum wage, zero,
And if things get bad enough, as in a collapsed economy, there will be only two currencies left: food and labor.
And slavery, which is what the Dirtbagocrats want back.
And protection.
Yeah, minimum wage means “if they could pay you less, they would.”
A zero minimum wage. Slavery. Awesome.
Try being a slave and then write that shit.
JB,
Typical bubble mentality.
It only works in Silicon Valley because Google, Apple, Intel and dozens of other large tech companies pay tens of thousands tech workers six figure salaries with generous benefits and bonuses. They have enough discretionary income to not feel the pinch of an extra dollar or two at the drive thru. Outside of the blue bastions, where the working class live, that isn’t the case.
Yeah but no. The “big tech” companies don’t contribute shit to the communities they infest here. Sluttish amounts of free money but they put no investment in infrastructure. Not that social media or online sales companies are actually “big tech.”
There are a million people here in San Jose and we aren’t billionaires. Far from it. A couple out of a million? Shit.
Your opinion of this place is taken from long distance. You don’t know what you’re talking about. We’re real people here.
There is no justification whatsoever for government-set minimum wages. Left alone, local labor markets work best for employers and employees alike. https://www.aei.org/carpe-diem/ten-reasons-that-market-determined-wages-are-better-than-government-mandate-minimum-wages/
Left alone, People impose slavery.
“Unfortunately, the real minimum wage is always zero, regardless of the laws, and that is the wage that many workers receive in the wake of the creation or escalation of a government-mandated minimum wage, because they lose their jobs or fail to find jobs when they enter the labor force. Making it illegal to pay less than a given amount does not make a worker’s productivity worth that amount—and, if it is not, that worker is unlikely to be employed.”
― Thomas Sowell, Basic Economics: A Citizen’s Guide to the Economy
I expect that a number of restaurants will eventually close their businesses for good.
Why? The Wuhan flu scamdemic is gone. It can’t harm President Trump anymore so it’s outlived it usefulness to the Dirtbagocrats.
Restaurants are OPENING, not closing.
Minimum wage is for entry level workers with no experience. This only hurts the young and the inexperienced. I know of very few high school kids that from day one have the skills and work hard enough to make 20 dollars an hour. It keeps employers from giving the people with no experience a job. The high minimumm wage in the end, just hurts lower income people. The higher the labor cost, the higher the end product is. The worker with the best skills and work ethic will earn more money or go to a higher paying employer.
Yeah, just who you want to make your food.
NOT.
And oh yeah, NONE of the workers in my local Walmart McDonald’s are teenaged. I doubt any of the Burger King employees are either but I wouldn’t know because I’d commit hare kiri on my dick before going there.