Kerby Anderson
The Wall Street Journal editorial board begins with this observation: “The laws of economics continue to exist even when politicians ignore them.” What they are talking about is the decision in California to increase the fast-food minimum wage to $20 an hour. When the editors predicted the inevitable outcome, the governor’s office claimed they were “pushing a false narrative.” Now reality has set in, and the predictions have come true.
Over the years, I have written commentaries about progressive attempts in cities like Seattle and Portland to raise the minimum wage significant amounts. The results are always the same. Some benefit, but most others do not. Owners cut back the number of workers and the number of hours for those who remain. And prices go up. California is no different.
“An Associated Press dispatch last week reported that California fast-food franchises have been cutting worker hours after the wage mandate took effect…. A Del Taco manager slashed the number of workers for each shift by half. A Jersey Mike’s franchise owner reduced morning and evening shifts, reduced his staff by 20 workers, and raised prices.”
The greatest harm is to those who lose their jobs. Research done by Beacon Economics recently found that California’s minimum wage law, “does particular harm to teenagers. In the past two years, unemployment among 16-to-19-year-olds nearly doubled.” As the editors noted, “Instead of flipping burgers, more California teens will be flipping through TikTok videos.”
Think of your first few jobs. Like me, your only job skills were a strong back and a good work ethic. We probably weren’t worth $20 an hour, but we did learn from skills that have made us successful today. Many young people won’t get that opportunity because of this law.
This post originally appeared at https://pointofview.net/viewpoints/minimum-wage-backfire/?utm_source=rss&utm_medium=rss&utm_campaign=minimum-wage-backfire
