California wage hikes cost the state 18,000 jobs

Personally I don’t support excessively high minimum wage laws, especially just targeted at one job sector.

But looking at the data given, this caused wages to be 8% higher than otherwise, but decreased employment by 2.64%. That’s about a 5.5% net total wage gain for the sector. One could argue that is a success. Much of the 2.64% could probably get jobs elsewhere.

 

Well, Trump and ICE are helping those folks by creating job opportunities …… via the deportation of undocumented illegal aliens from California. So, everything should work out quite nicely.

 

The unsaid goal of these ridiculous "minimum" wage hikes is to kill off small business, and the middle class... Pure Communism in design and implementation. This is what all Democrat controlled states would love to do. Mamdomy the Commie has proposed a $30/hour minimum wage... and that is communist in purpose. They have mom and pop owned small businesses, and they want to kill off the middle class.

 

Which US states have the largest economies? Here's how they rank

 

Taxes isn't the only reason they are ranked #4 in the world:
California - Agriculture, Technology, Tourism | Britannica

California Becomes World’s Fourth Largest Economy | Armstrong Economics

 

Florida has some pretty shitty cities too - I'm not sure if you've noticed. How much time have you spent in Miami outside of south beach or brickell? Downtown Jacksonville is an absolute unmitigated disaster, and they basically have a hail mary going with the state funding a crazy UF expansion to try to revitalize their downtown. That project is eating up like 350 mil or something in Florida tax payer money. Every state (and city for that matter) has its own problems - comparing them apples to apples is generally just a political exercise.

And I don't know why people are bragging about rich people leaving to go live somewhere where they have to pay less to live. Is that really a winning issue with voters? Let's make sure we keep our super wealthy people comfortable? really?

 

You can multiply the wages x people working to get total wages. Not sure of his math since I am not looking at raw data, but you could compare the 750,000 fast food workers x old average wages, and if ~18,000 lost their jobs and we want to blame the higher minimum wage, you’d still have 732,000 working at a higher average wage. Comparing total wages is probably a good way to look at it.

$20.00 I suspect is pushing it a bit even in CA, hence a slight loss of fast food jobs. But it’s not such a crazy number in CA market that it’s just pure destruction without benefit, or at least it’s plausible that total wages actually went up despite shedding 18,000 jobs.

 

8 percent wage increases means 100+8=108

Now eliminate 2.64% of the workforce

108*97.36% =105

105>100

There is the obvious assumption that those eliminated make on average what all fast food workers do.

So the net result is you have increased total wages in the sector a net 5%. That seems like a pretty good trade-off.

However it could be (and I expect is the case) that over time the amount eliminated will exceed 2.64% as automation is put into place, but the relative wage increase was a one time event.

it’s not unlike what happens with unions. They drive up wages, which benefits workers. But employment stalls and begins to fall, as offshoring or automation become more attractive.

 

My intention was exactly what Bling articulated. I didn’t spell out the math because it seemed obvious - it certainly was to Bling.

 

Conservative logic:

Higher prices because of higher pay for American workers = bad
Higher prices because of tariffs that American workers pay = good

 

The Small Business Association defines a small business as having 500 or fewer employees which to me anyway isn’t that small. Just my opinion but if you’re in business and can’t afford to pay your employees a living wage then maybe your business is about to die anyway. Also maybe we should have a separate minimum wage for kids working part time flipping burgers at McDonalds that’s lower.

 

Sure it does. 8 % wage increase means all the workers' increase their BMI by 8%, making them clinically obese... or "fat asses," in the vernacular, while the decrease of 2.64% in employment reflects an increase in IQ, thus rendering a net increase in dumber but leaner unemployed former wage earners, of 5.35%.

Duh...

 

Lol! Your communist ideology prevents you from assessing anything American, objectively.

Not even worth correcting.

 

Why are higher prices from better wages bad, and why are higher prices from trade tariffs good and help America? Tax revenue is better than good pay for conservatives? What a time to be alive!

 

It is quite bizarre, as ultimately both things are the govt intervening in the free market supposedly for “domestic workers” to have more jobs and higher wages, and similarly both would influence prices higher (depending on how high govt sets it’s rates).

An ideological free market puritan of course would want to eliminate minimum wage and do 0% on tariffs. Makes no sense to be strongly ideologically opposed to one but not the other. I guess Josh Hawley is pushing for $15.00, so he “gets” that strange disconnect (either that or he is a politician performing for the populist plebes). Most people are probably ok with minimum wage laws as long as they aren’t too disruptive. Just as most are ok with certain tariffs (particularly against adversaries), but the general impetus of free markets should be 0% trade barriers.