They’re out of here! Going once, going twice, and they’re gone. That’s right folks. California has gone off the deep end, and now they’ve done it. The state of California has once again set themselves up for failure and made some horrible governmental decisions that will ultimately ruin the lives of 400,000 Americans. We’re talking about cold hard cash being put in the hand of a select few people while 400,000 may have to beg for handouts and collect welfare, costing the taxpayers more money than they’re already paying now.

Economists warned California about doing it, but they didn’t listen. Those with more expertise, logic, and business skills warned that if California forced every business to increase their minimum wage to $15, that many companies wouldn’t be able to sustain their business, nor would they be able to retain their employees. On top of running the risk of closing their shop, they lose hope of being able to hire future employees. It’s reported that at least 400,000 jobs could be gone thanks to the mandatory minimum wage increase in California.

The forced increased wages shows why it’s wrong for the government to get involved with businesses and force them to do things they may not be able to afford. When a small company which is barely scraping by faces a mandatory pay raise that they cannot afford, then what do you think happens? The business has two options. Either the company closes, or they have to fire people. On top of that, the business can’t afford to hire new employees. People get fired, new jobs aren’t made, some companies closed altogether, and that’s where the 400,000 job losses originate. It’s modern-day math folks – businesses need to make enough money to sustain their livelihood. If they’re forced to pay wages they cannot afford, then their business falls apart. The number one rule in business is that a company needs to make money to stay alive.

Conservative Tribune reports:
That’s why it’s with such sad news that California forced the mandatory minimum wage hike and now Californians will suffer.

According to that study, entitled “California Dreamin’ of Higher Wages,” California will lose an estimated 400,000 jobs by 2022, the year California’s $15 minimum wage has fully gone into effect.

Not only is the minimum wage increase going to affect hundreds of thousands of workers, the ones worst-hit will be employees of companies who utilize many lower-class workers.

In other words, many of those Californians who felt they needed to be better compensated — lower class citizens — will be out of a job entirely.

“The… preferred model show that past minimum wage increases in California have caused a measurable decrease in employment among affected employees,” the study reads.

It looks like California went from dreaming of higher wages to dreaming of welfare and unemployment. Conservatives have warned California about what could happen if they force mandatory wages upon businesses, with the small businesses primarily in mind, and now here we are facing a massive dilemma of job loss.

It’s a known fact that when Seattle first increased all minimum wages to $15 per hour, that their food service and restaurant industry lost a lot of jobs. People found out the hard way that when a business can barely pay their bills, and then the government forces them to pay more bills, that there is a chance people will get fired, no new jobs will be created, and people suffer.

The article goes into further detail:
“By 2022, approximately 400,000 jobs would be lost as a consequence (of minimum wage increases). (This estimate is conservative, as it measures the impact of California’s state minimum wage but does not account for job loss in counties that had insufficient data,)” the study states later on.

And the economists make the point conservatives have been making for years — if you’re flipping burgers and fighting for fifteen, you’re fighting for the loss of your job.

“Industries with the greatest number of affected employees are most severely affected by job loss, according to Even and Macpherson; nearly half of the observed job loss occurs in foodservice and retail industries,” the study went on.

These job losses are not set in stone, the study stated, but they are if California fails to rationally react to a failing economy, which they seem incapable of doing successfully.

When economists say that doing something will drastically affect the economy of your state negatively, then the state should consider that and listen to what they’re saying.

The only time minimum wage should ever be raised, is when the business decides they can afford to do so. California didn’t listen, and they just set their residents back and will force some of them to spend time unemployed and not thriving.

Let’s not forget there are some minimum wage jobs which require minimum skills and they’re not designed to be career choices like fast food jobs that are essential for teenagers to learn responsibility. There’s no reason for fast food to $15 per hour. Those workers have other options such as looking for new jobs, working up to management, or realizing they should get job training or an education to build a career for themselves.


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