What’s the biggest problem with California?
- Anti-growth class-warfare tax policy?
- A bloated and inefficient public sector?
- Excessive red tape and regulation?
- Boondoggles like the “Train to Nowhere“?
- An anti-business economic climate?
- Bad policies causing a high cost of living?
- Diminished quality of life?
- Crummy government schools?
- An endless appetite for entitlements?
If this was a quiz, I’d include an “all of the above” option. That would be the most accurate answer because the mess in California is due to all of the items listed. And more.
Sadly, even though businesses and households are fleeing the state, politicians such as Gavin Newsom can’t resist adding more and more straws to the camel’s back.
The latest example of terrible public policy is the $20-per-hour minimum wage. The Wall Street Journal has a new editorial about this job-killing initiative. Here are some excerpts.
California’s $20 an hour fast-food minimum wage took effect two months ago, and the casualties are mounting. Rubio’s Coastal Grill, famous for its fish tacos, closed 48 restaurants in the state on Friday. …Gov. Gavin Newsom responded by blaming Rubio’s. …Rubio’s didn’t specifically mention California’s new $20 minimum wage, which is a 25% increase over its already burdensome $16 an hour minimum. California’s soaring energy and insurance costs also contribute to the hostile business climate. …Workers will be the victims. Restaurants are cutting hours and automating tasks where possible to reduce labor costs. …The average weekly earnings for California leisure and hospitality workers has declined by 2.6% owing to a large drop in hours worked. Politicians think they can dictate wages and impose regulations without consequence. California is proving they can’t.
Keep in mind that local governments in California often impose additional wage mandates that cause additional job losses.
P.S. The failure of California governance is captured by the fact that politicians are choking the state’s marijuana sector with high taxes, but rather than lower taxes they are giving out subsidies.
P.P.S. This video is a succinct explanation of why minimum-wage mandates are a bad idea.
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Image credit: Gage Skidmore | CC BY-SA 2.0.
