Progressive policy proposal fails in California: Is the tide turning against left-wing insanity? In a surprising turn of events, a progressive policy proposal has been rejected in California. This unexpected outcome suggests that there may be a shift in public opinion against left-wing ideologies.
According to Jenny Goldsberry from the Washington Examiner, the proposal to increase California’s minimum wage to $18 per hour has been rejected by the majority of voters. After counting over 99% of the votes, it was revealed that 50.8% of voters voted against Proposition 32. This marks the first time that a wage raise has been rejected in a state election.
According to Goldsberry, the state currently has a minimum wage of $16, and fast-food workers are entitled to a minimum wage of $20.
Democratic voters in California seem to have recognized the consequences of their current policies and wisely avoided exacerbating the situation. This ballot initiative, had it been successful, would have only made matters worse. It is worth noting that the state’s vote counting process should ideally take no longer than two weeks.
We all share the desire for hardworking individuals to earn higher wages, and we certainly empathize with those facing financial difficulties. However, increasing the mandatory minimum wage to $18 per hour does not necessarily lead to increased productivity among workers.
Instead, it essentially makes it unlawful for businesses to hire individuals who cannot justify such a high wage with their level of contribution. Take, for instance, a teenager who could provide $15 per hour worth of value to their employer – they would now find it extremely challenging to secure employment. As economist Thomas Sowell aptly points out, “The true minimum wage is always zero.”
How does it benefit individuals to be priced out of the job market or be compelled to work illegally under the table?
When employers are required to bear the burden of higher labor costs, it ultimately results in increased prices for consumers. A well-known study discovered that McDonald’s managed to transfer almost the entire cost of minimum wage hikes to customers through higher menu prices.
Consequently, working-class individuals do not significantly benefit from higher paychecks if the prices of essential goods and services also increase. Moreover, these additional costs would place even more pressure on small businesses already grappling with survival in California.
California voters typically do not possess basic economic knowledge, but they may have become more aware of the consequences due to the significant failure of their state’s recent implementation of a $20 minimum wage for fast-food restaurants. These consequences are predictable with basic economic knowledge.
According to a report by the Employment Policies Institute, nearly all of the California restaurants surveyed (98%) stated that they increased prices in response to certain circumstances.
Additionally, 89% of these restaurants reduced the hours of their employees, while 70% either downsized their staff or combined various positions. Furthermore, a significant 89% of restaurant owners expressed a decreased likelihood of expanding their operations within California.
Progressive advocacy seems to be struggling when even Californians, of all people, are not buying into their flawed ideas. Perhaps, at long last, residents of the Golden State are beginning to realize the consequences and may just be able to rescue their state from its self-inflicted, gradual economic decline.
Brad Polumbo is not only an independent journalist but also the host of the Brad vs Everyone podcast.