Tag: minimum wage

Josh Hawley Wants To Raise the Minimum Wage

Sen. Josh Hawley (R–Mo.) has introduced a bill to increase the federal minimum wage, which has been $7.25 an hour since 2008. Hawley wants it to be $15 an hour. Many of us thought that the minimum wage issue was settled, but here we are again.

This is freshman-level economics: If you introduce a price floor on labor, the supply of people willing to work at that wage will exceed the demand, resulting in unemployment. If an employer can either have three employees making $10 an hour or two at $15 an hour (and one on public assistance), which do you think he would choose? Politicians like Hawley seem to think companies will simply accept lower profit margins. But they won’t—they’ll raise prices, cut staff, or go out of business.

Since hardly anyone earns $7.25 an hour these days, the federal minimum wage doesn’t cause serious economic distortion. A $15 mandate, by contrast, would wreak havoc, especially in low-cost-of-living areas. A simple thought experiment would be to imagine what would happen if we had a $10,000-an-hour minimum wage. This would obviously eliminate most jobs. The same principle applies to smaller hikes, even if the effects would not be as drastic. If prosperity could be legislated, we would have done it long ago.

Hawley is an interesting mix: socially conservative, economically populist. He has supported tax hikes on the rich, expanding the power of unions, capping credit card interest rates, expanding Social Security, imposing tariffs, and imposing prescription drug price controls. He’s frequently on the same side as such left-wing figures as Sens. Elizabeth Warren (D–Mass.) and Bernie Sanders (I–Vt.). In fact, he and Sanders, a self-described socialist, co-sponsored the bill to cap credit card interest rates.

What does it mean to be a Republican these days? What defines Republican economics? It used to be lower taxes or balanced budgets, but no longer. The Democrats are getting a lot of mileage out of being anti-tariffs, but that’s not because they are philosophically committed to free trade—most of them are reflexively opposing Trump. If a Democrat is elected in 2028, there’s a good chance they’ll maintain his tariffs. Voters don’t have many free market choices remaining.

We are a long way from 2005, when President George W. Bush and Treasury Secretary John Snow made an honest attempt at privatizing Social Security, or from 1998, when President Bill Clinton was pondering a bipartisan move along similar lines.

The camera loves Hawley; he’s handsome, articulate, and dangerous. When it comes to economics, there isn’t much daylight between him and the furthest-left factions of the Democratic Party. It is all about the packaging. If Hawley seems less crazy to the average voter than Warren and Bernie, that should worry us all.

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Los Angeles approves $30 minimum wage for airport, hotel workers

The Los Angeles City Council on Wednesday approved a $30 an hour minimum wage hike for airport and hotel workers, which will be enacted by 2028 in time for the Olympics. City council members approved the measure in a 12-3 vote. While union officials praised the approval, those working in the hospitality industry vigorously opposed the legislation and warned that the pay increase could result in mass layoffs, increased costs for consumers, and hotels shutting down.

According to the Olympic Wage ordinance, hourly pay will increase by $2.50 each year until 2028, where it will cap at $30 per hour. The first increase will occur on July 1, 2025, at an amount of $22.50 an hour, as stated in the measure. The current minimum wage is set at $20.00 per hour.

American Hotel and Lodging Association CEO Rosanna Maietta issued a warning about the proposal last month. She stated at the time, according to California Globe: “Hotel employees in Los Angeles are paid the highest wages in the country, but right now their jobs are at risk. City leaders are considering a damaging proposal that will jeopardize these jobs; it would devastate much needed tourism related tax revenue and lead to the closure of hotels that are desperately needed to successfully host the 2026 World Cup, the 2027 Super Bowl, and the 2028 Olympics.”

Despite the opposition, Los Angeles lawmakers overwhelmingly rejected the concerns and called the passing of the bill a “win” for the working class.

“This is what it looks like when people come together and fight – we win,” said Los Angeles City Councilman Hugo Soto-Martinez, who voted to approve the ordinance. “For too long, the workers who make this city run have been treated as disposable. This ordinance makes it clear if you work in this city, you deserve to live in this city – with dignity, healthcare, and a living wage.”

Jessica Durrum, deputy director of Los Angeles Alliance for a New Economy (LAANE), echoed a similar sentiment, stating that the “common sense” measure was critical to ensure that “tourism workers can afford to live in the city where they work and not be displaced by skyrocketing housing costs.”

While the majority of council members approved the bill, councilwoman Monica Rodriguez was not one of them. She explained to the paper that she opposed the increase because it lacked “fiscal foresight” and could elevate unemployment.

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Oakland’s New Mayor Wants $50 Minimum Wage, What Could Possibly Go Wrong?

Barbara Lee, a longtime Democratic politician, is stepping into her new role as mayor of Oakland amid economic chaos and public concern.

After leaving her congressional seat in 2024 to pursue a U.S. Senate bid—ultimately losing to Adam Schiff—she returns to city politics at a precarious moment.

Oakland’s city government is staring down an $87 million budget deficit.

Pensions, insurance, and a shrinking tax base are expected to make matters worse.

The city has become a symbol of urban decline in California, marked by rampant crime, business closures, and general lawlessness.

Oakland voters have made their choice, and now they’ll live with the consequences.

Barbara Lee’s election is not just another leftward lurch—it’s a hard swerve into fantasy economics and failed policies repackaged as “progress.”

Anyone who thinks raising the minimum wage to $50 an hour—equivalent to $104,000 a year—is a sane or sustainable policy shouldn’t be running a lemonade stand, much less a major city.

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Seattle’s new $20 minimum wage claims 6th restaurant casualty since New Year

Seattle’s new $20 minimum wage for 2025 has caused a 6th restaurant to close since the new year.

Pike Place Market bakery The Confectional closed on Sunday after 18 years in business.

Owner Destiny Sund told KIRO News Radio, “I wanted my team to have a wonderful holiday season, so I didn’t mention to them that we would be closing until after New Year’s Day. So this has been a long week for all of us at The Confectional.”

The minimum wage for all employees in the city limits, regardless of business size, jumped to $20.76 on January 1. Last year, if a worker earned at least $2.72 per hour in medical benefits or tips, the business only had to pay its employees $17.25 per hour, but now, for those businesses that featured tips, the change to the minimum wage was a 20 percent increase. The Emerald City’s increase is $4 more than Washington State’s minimum wage requirement.

Sund added, “That allowed businesses 50 employees or under to subtract $2.00 from the minimum wage. If they could make it up in tips and or benefits. And my employees did make that up in tips.”

She continued, “And just doing the math with the additional increase and the loss of the tip credit, it would cost my business an additional $18,000. And that’s just not sustainable.”

At least five other restaurants in Seattle have closed or are closing just days after the city council’s new minimum wage law went into effect.

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Seattle Set Minimum Wage Over $20 and You’ll Totally Believe What Happened Next

Seattle closed the door on the subminimum wage for people who work for small businesses, earn tips, or enjoy medical benefits under a punishing new minimum wage law. This forced one popular spot to close up shop the same day the new ordinance went into effect.

“Previously, if an employee earned at least $2.72 per hour in medical benefits or tips,” Fox 13 Seattle reported, “a business could pay its workers $17.25 per hour.” As of New Year’s Day, all the exceptions and exemptions are gone. Seattle’s new no-excuses minimum wage is now a payroll-busting $20.76 an hour.

Bebop Waffle Shop threw a big party on Dec. 31 and permanently locked its doors on Jan. 1. My shocked face was last seen sipping a brandy by the fire and reading a dog-eared copy of Milton Friedman’s “Why Government Is the Problem.” That’s my amusingly wordy way of saying that I totally believe it happened.

The local diner’s finances were already suffering due to inflation and lower downtown foot traffic. It was against this economic backdrop that the city chose to impose a 20% pay hike on restaurant workers because politicians put moral preening and virtue signaling ahead of any other considerations.

Then there’s the part I didn’t believe at first but, on reflection, seemed almost inevitable. “I hate to close a safe space for queer people at this time,” Bebop Waffle Shop owner Corina Luckenbach explained on Instagram, “but the money just isn’t there after the minimum wage increase (which I fully support).”

Emphasis added because some folks are just too far gone ever to take the red pill. Still, you want to grab Corina by the hoodie and explain things to her in words she’ll understand, tell her, “Minimum wage laws are bad for queer people and other living things, mmkay?”

Anthony Anton, head of the Washington Hospitality Association, estimated that Seattle will see 5%-8% of its restaurants go out of business — in 2025 alone.

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Bidenomics and California’s $20 Minimum Wage Force San Francisco McDonald’s to Close After 30 Years

The McDonald’s at Stonestown Galleria in San Francisco announced it will shut its doors permanently.

After serving the community for more than three decades, this fast-food staple cites the crushing combination of high operational costs and recent legislative changes as the primary reasons for its closure.

The franchisee owner, Scott Rodrick, confirmed the closure in a statement to ABC7’s Dion Lim.

According to Rodrick, the closure is due to two main reasons: an uncompromising landlord who refused to negotiate a “sensible” rent, and the sky-high property taxes and mall fees, which were reportedly the highest paid for any single location within the company.

Rodrick also pointed out that conducting business in California had become increasingly challenging, especially with the state’s new minimum wage for fast-food workers. He described this as a “gut-wrenching” day for his family.

A notice posted on its door reads:

Dear McDonald’s Customer,

On June 23, 2024, this restaurant (255 Winston Drive at Stonestown Galleria) will be permanently closing. It has been a pleasure for my entire team and I to serve the 19th Avenue and Ingleside neighborhoods for more than 30 years. We are thankful to have been a part of your daily meal routine, either for an Egg McMuffin in the morning or a Happy Meal with the kids after an afternoon of shopping at Stonestown.

All of our valued team members have been offered opportunities to continue working with my restaurant company at other nearby McDonald’s. We hope that you will continue to visit us at our other neighboring McDonald’s restaurants. Or you can have your favorite McDonald’s meal delivered to you via our digital app.

The fast food chain is the latest casualty of Bidenomics and Governor Newsom’s $20 minimum wage law.

Last week, one of Hollywood’s most iconic restaurants, Arby’s Roast Beef, closed after an impressive 55 years in business.

Gary Husch, Leviton’s son-in-law and the general manager of the establishment, echoed these sentiments. Speaking to the Los Angeles Times, Husch emphasized that the combined effects of inflation, the pandemic’s impact on foot traffic, and the draconian wage increase directly led to their difficult decision.

“With inflation, food costs have skyrocketed and the $20-an-hour minimum wage has been the final nail in the coffin,” Husch said.

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Biden and AOC demanded a $15/hr minimum wage, but their Climate Corps pays less than $12 per hour

President Joe Biden and New York Democratic Rep. Alexandria Ocasio-Cortez have loudly advocated for a minimum-wage increase and for addressing what they say is a “climate crisis.” Based on wages offered for the positions listed under Biden’s taxpayer-funded American Climate Corp (ACC) program — many of which pay under $12 per hour — when the two goals conflict, climate change is the priority. 

Biden: “More than a paycheck. It’s about dignity.”

The ACC, according to Biden and Ocasio-Cortez, is modeled on former President Franklin Delano Roosevelt’s Great Depression-era Civilian Conservation Corps. It aims to put “more than 20,000 young Americans to work fighting the impacts of climate change today while gaining the skills they need to join the growing clean energy and climate-resilience workforce of tomorrow.” 

Ocasio-Cortez has been advocating for the program for years. 

“This is not a pipe dream, and this is not some big progressive vision that is quote-unquote unrealistic,” Ocasio-Cortez said at a press conference in July 2021 announcing the creation of the program. 

At the same time, Biden and Ocasio-Cortez have been advocates for increases in the federal minimum wage. Shortly after taking office, Biden issued an executive order to give federal employees and employees of federal contractors a $15 per hour minimum wage. 

“A job is about more than a paycheck. It’s about dignity. When I was running for president, I said it was past time to increase the federal minimum wage to $15 an hour,” Biden said in a statement. 

When opposition arose over the inclusion of a bill to increase the federal minimum wage in the Democrats’ covid pandemic relief package, Ocasio-Cortez upset that the bill was even being debated. 

“It is utterly embarrassing that ‘pay people enough to live’ is a stance that’s even up for debate,” she posted on X. 

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California Restaurants Have Slashed 10,000 Jobs Since Democrats Introduced $20 Minimum Wage

Restaurants across the state of California have cut at least 10,000 jobs since Democrat lawmakers mandated a $20 minimum wage, according to a major trade group.

According to the California Business and Industrial Alliance (CABIA), thousands of restaurant workers have lost their positions as businesses are forced to cut labor costs and raise their prices in order to survive.

The New York Post reports:

The California Business and Industrial Alliance (CABIA) slammed  Democratic Gov. Gavin Newsom for pushing through the law, which went into effect April 1 – and was blamed for forcing one beloved taco chain to shutter 48 locations in the state last week.

“California businesses have been under total attack and total assault for years,” CABIA president and founder Tom Manzo told Fox Business. “It’s just another law that puts businesses in further jeopardy.”

Several major chains – including McDonald’s, Burger King, and even low-cost favorite In-N-Out Burger – jacked up prices to offset the higher wages. Many had to cut employee hours and some have expedited a move to automation.

Manzo said nearly 10,000 jobs have been cut across fast food restaurants since Newsom signed California Assembly Bill 1287 into law last year, adding that officials were living in a “fantasyland” by thinking that drastic wage increases will help workers or businesses.

Just this week, the beloved restaurant chain Rubio’s Coastal Grill, announced that it would be closing 48 locations statewide due to the unaffordable costs of doing business.

“The closings were brought about by the rising cost of doing business in California,” said a statement from a Rubio’s spokesperson. “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.”

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California’s Catastrophic Minimum-Wage Surge: A Recipe for Disaster Unfolds

The Golden State stubbornly disregards warning signs surrounding the wage hike policies advocated by progressive unions.

According to National Review, California recently rolled out a groundbreaking $20 minimum wage for fast-food workers. However, labor unions, and their radical activist allies, are now pushing hard to expand this wage rate into other industries.

In examining California’s wage policies, it becomes obvious that the likely outcomes have a predictable path. One notable case study highlights the consequences of a near-$20 minimum-wage model, which unfolded within the state’s purview.

In 2021, Unite Here Local 11, a prominent labor organization situated in Los Angeles, orchestrated a series of actions that resulted in a $17.64 minimum wage for hotel employees within West Hollywood. This wage floor represented the highest across the nation. 

Not content with this achievement, the union swiftly expanded its advocacy efforts towards larger targets. These efforts eventually resulted in the adoption of this wage standard across all sectors within the municipality.

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California Fast Food Prices Skyrocket Following Imposition of $20 Minimum Wage

The price of fast food restaurants in California has surged after the state imposed a $20 minimum wage law.

According to an analysis from Kalinowski Equity Research, fast-food restaurants across the Golden State have hiked prices by around eight percent since the law went into effect at the beginning of this month.

The New York Post reports:

Wendy’s raised its menu prices by around 8% while Chipotle Mexican Grill hiked its prices by approximately 7.5%. Starbucks, the Seattle-based coffee chain, raised the prices of its menu items at its California locations by around 7%, while Taco Bell hiked its prices 3%, the report found.

…

It found that Burger King instituted an average price increase of 1.4% for its Whopper Meal and 2.1% for its BK Royal Crispy Chicken Meal at the 25 locations. The report’s authors did the same for Chipotle, which was found to have boosted the price of its Chicken Burrito by 8.3% and its Steak Burrito by 7% at 25 locations in California between Feb. 7 and April 2.

Wendy’s also instituted substantial price hikes on staple menu items such as Dave’s Combo and the Classic Chicken Sandwich Combo. In a comparison of prices from Feb. 12 and April 2 at 25 Wendy’s stores in California, the company raised the price of both items by an average of 8%. McDonald’s appears to be the only fast food chain that has largely held off on raising its menu item prices, according to the report.

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