Democrat strongholds are horribly mismanaged.
Their leaders refuse to operate in reality.
And Gavin Newsom’s state got some bad news that every sane person saw coming.
California made the foolish decision to artificially raise the minimum wage for fast food employees to an eye-popping $20 per hour.
Democrats championed the move as a victory for workers, but people who live in the real world knew what was coming.
The rate hike led to increased prices, layoffs, hours cuts, and restaurant closures.
Economic backlash
All of this was predictable because it always happens when Democrats artificially jack up the minimum wage too high in order to buy off labor unions.
California Governor Gavin Newsom did precisely that to make SEIU (Service Employees International Union) leadership happy, and now everyday Californians are paying the price.
The California Business and Industrial Alliance (CABIA) reported that “[s]ince AB 1228 was signed into law last September, California fast-food restaurants have cut nearly 10,000 jobs, representing a 1.3 percent change from September 2023. . .[N]umerous fast-food chains across California. . .have been forced to raise prices, lay off workers, and shut down stores, creating a wave of concern throughout the Golden State’s business landscape.”
Newsom made sure to write the law in a way so that certain businesses were exempt from the $20 minimum wage, namely Panera Bread where the Governor had financial ties to the owner.
Tom Manzo, President and Founder of CABIA, wrote in a statement, “Unprecedented wage hikes have unprecedented consequences, especially in California where the odds are already stacked against businesses. The rapid job cuts, rising prices, and business closures are a direct result of Governor Newsom and this short-sighted legislation. California’s business community and its workers deserve better. We need policies that support growth and stability, not ones that jeopardize livelihoods.”
Many restaurant chains announced cutbacks and closures almost immediately.
Leftists have no concept of money, so they believe restaurants have huge margins and are simply sitting on hordes of cash.
A spokesperson for Rubio’s Coastal Grill announced, “Making the decision to close a store is never an easy one. . .While painful, the store closures are a necessary step in our strategic long-term plan to position Rubio’s for success for years to come.”
Rubio’s had to close down 24 stores across Los Angeles, San Diego, and Northern California.
And Rubio’s was not alone.
Multiple businesses hit
Some of the other companies that made similar cuts were Fosters Freeze, Pizza Hut, Mod Pizza, Subway, Round Table Pizza, Burger King, McDonald’s, Cinnabon, and El Pollo Loco.
Because Democrats have a supermajority in the state legislature, Democrats can pass almost any bad idea that they want.
Imagine how insane a law has to be for it not to pass in California.
The Left have bought into this idea that people working entry-level jobs at fast food restaurants are supposed to be able to support a family.
“It’s a starter industry,” Manzo explained. “You get a job as a kid working in a fast food restaurant and you learn some good work ethic and that takes you into life.”
There’s a reason California has net negative migration out of the state, and it’s not because of the beaches, the weather, and the women.
Stay tuned to Blue State Blues for any updates to this ongoing story.
