The repercussions of lost jobs and increased prices are beginning to materialize, contributing to a growing exodus of residents leaving the state.
California already bears the burden of some of the highest taxes and living costs in the nation, a result of failed government policies. The implementation of a higher minimum wage only adds to this burden.
Take, for example, California’s environmentally-driven energy policies, which have led to skyrocketing utility rates. Instead of revising these mandates, the state introduced additional charges on utility bills, further burdening the middle class.
The excessive taxation, spending, and regulation by the Sacramento government have transformed California into a state experiencing a significant population decline, with 1.2 million more people leaving than arriving over the past three years—the largest loss compared to any other state, surpassing even New York by 35 percent.
Despite the evident dislike for these policies among Californians, the implementation of a higher minimum wage for fast-food workers signifies a continuation of disastrous economic decisions becoming law, characterized by appealing rhetoric but detrimental outcomes.
Promoted as a means to ensure corporations pay a “living wage” to workers, the reality is that businesses operate based on financial viability. At $20 an hour, many fast-food workers may not generate enough value to justify the highest minimum wage in the nation.
Unsurprisingly, fast-food companies in California have halted hiring and begun announcing layoffs. The state, which is currently home to half a million fast-food workers, is witnessing a decline in these numbers, with automation being increasingly adopted in the industry.
Companies like McDonald’s, Jack in the Box, and El Pollo Loco are investing in automated solutions to replace human workers, citing cost-effectiveness and reduced liability as driving factors.
For positions that cannot be automated, outsourcing becomes a likely option, leading to job losses for many workers. The ripple effects of these policies extend to consumers, who may face higher prices and reduced service options.
Advocates of the $20 minimum wage may not fully grasp the implications of their stance, as job losses and price hikes disproportionately impact lower-income individuals who frequent fast-food establishments.
In essence, a $20 minimum wage functions as a de facto ban on jobs paying less than that amount, leaving individuals in that category with limited options for employment.
Furthermore, the law establishes a Fast-Food Council with the authority to incrementally raise the minimum wage for fast-food workers, potentially leading to further job losses.
As California continues to witness a mass exodus of residents, driven by policies targeting low-income workers, the state risks losing its workforce to other regions or welfare dependency.
The Golden State is jeopardizing its economic prosperity by adopting detrimental policies.
Originally published by Fox Business; reprinted by permission from The Daily Signal, a publication of The Heritage Foundation.
Views expressed in this article are opinions of the author and do not necessarily reflect the views of The Epoch Times.
