Monday, January 04, 2016

California's New Laws Series: Minimum Wage $10 Per Hour

By Douglas V. Gibbs

Minimum wage workers must be paid at least $10 an hour (AB 10): This law was first signed in 2013 by Gov. Jerry Brown, and increases the California minimum wage to $10 an hour starting Jan. 1, 2016.

This law does nothing for the bottom wage earners, and screws the Middle Class.  Eventually, as businesses adjust to the increased cost of doing business, prices will rise (thus, increasing the cost of living), which will take away any advantage the increase of the minimum wage may have had.  Also, in an effort to reduce costs, many businesses will reduce the number of employees, either expecting remaining employees to increase their workload, or by installing automated systems (as McDonald's is doing).  As the cost of living increases, those who make greater than $10 per hour will likely not get a raise, and some of their jobs may be at risk, as well.  The increase in minimum wage is knocking a number of smaller businesses out of business, showing the little guy that the Democrats not only do not care about them, but they are willing to take actions that will force them out of business.  The corporations willing to remain in California will adjust, and likely enjoy the loss of competition as the smaller local businesses go under, and their larger competitors high-tail it out of California.

In the case of my wife, she works in retail.  She was hired over five years ago at $8.30 per hour.  She has worked for over five years to get her pay to where it is now, which is $10.45 per hour.  Now, thanks to the minimum wage hike, she is training new employees that only make 45 cents less an hour than she does.  The company has no interest in increasing any of the wages of employees who are making more than $10 per hour.

In some cities in the Inland Empire, a significant number of the larger restaurants and stores have already closed their doors and are departing from California.  The employees that were hoping for that raise, instead will now be standing in the unemployment line.  Meanwhile, if they don't get health insurance, Barack Obama's health care scheme will fine them at the end of the year for not having health insurance, taking more money out of their pocket that they don't have, thanks to the Democrat's desire to raise the minimum wage, and mandate that Americans purchase health insurance, whether they have the money, or not.

As for those that will argue about the government subsidizing those who can't afford insurance, there are a number of strings attached, and in most cases, that money is expected to be paid back.

-- Political Pistachio Conservative News and Commentary

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