XPost: alt.california, talk.politics.guns, alt.politics.democrats   
   XPost: alt.politics.economics   
   From: screw-you-newsom@jan6.org   
      
   On 16 Feb 2022, "Text-Drivers R Killers"  posted   
   some news:suk2tv$1ckan$2@news.freedyn.de:   
      
   > Democrats never take into consideration that businesses will simply   
   > change and eliminate the reasons for stupid legislation - making it   
   > all mute.  Democrats are stupid and never see any further than the end   
   > of their noses.  Kiss all those jobs goodbye.   
      
   Residents in the Golden State are learning a basic yet painful lesson in   
   economics: If you tax something, you get less of it.   
      
   That’s the upshot of reports from over the holidays that California   
   restaurants have begun furloughing workers in response to an impending   
   statewide mandate taking effect in April. At that point, fast-food   
   establishments will have to pay a $20 minimum wage — up nearly 30 percent   
   from the state’s current $15.50 per hour   
      
   The California example provides practical confirmation of the theories   
   behind a separate Congressional Budget Office (CBO) report on federal   
   legislation increasing the minimum wage: namely, that hiking mandated   
   wages encourages firms to operate more efficiently — by laying off and   
   replacing workers.   
      
   Outsourcing and Price Increases   
   Approximately 1,200 Pizza Hut delivery drivers got a very unhappy present   
   just before Christmas. Two franchisees told them they would lose their   
   jobs due to the higher minimum wage. In a notice to federal authorities   
   publicizing the layoffs, the franchisees said they had “made a business   
   decision to eliminate first-party delivery services and, as a result, the   
   elimination of [sic] all delivery driver positions.”   
      
   In other words, the restaurants are outsourcing their delivery options to   
   places like DoorDash, Uber Eats, and GrubHub to avoid paying more workers   
   the higher minimum wage. That change may help Pizza Hut minimize the cost   
   effect of the new California mandate, but it could sock customers with   
   additional charges and fees imposed by the new third-party delivery   
   services.   
      
   Likewise, Business Insider reported that chain restaurants like Chipotle   
   and McDonald’s have “planned to pass the costs of higher wages in   
   California to customers by raising menu prices.” In other words, if the   
   pain of “Bidenflation” over the past three-plus years hasn’t already   
   proved enough for Americans to handle, California families will have to   
   dig still deeper into their wallets for a heretofore inexpensive meal   
   treat.   
      
   Federal Mandate Will Increase Unemployment   
   The stories out of California come on the heels of the report CBO issued   
   in December on a federally imposed minimum wage. The budget gnomes   
   examined the potential effects of passing legislation to raise the federal   
   minimum wage, in increments, up to $17 in July 2029.   
      
   While the budget office did conclude that net wages paid would increase   
   overall, and the number of people in poverty would decline slightly, these   
   changes would come at the cost of several important economic factors:   
      
   Higher wages would increase employers’ costs for producing goods and   
   services.   
   Employers would pass some of these increased costs on to consumers in the   
   form of higher prices.   
   Those higher prices, in turn, would lead consumers to purchase fewer goods   
   and services.   
   Employers would consequently produce fewer goods and services, and, as a   
   result, they would tend to reduce their employment of workers at all wage   
   levels.   
   Less consumption and higher inflation — not exactly hallmarks of economic   
   strength.   
      
   In addition, CBO estimated that the projected increase in unemployment   
   (700,000) would exceed the reduction in the number of individuals in   
   poverty (400,000). Half of the 700,000 who become unemployed due to the   
   minimum wage rise would drop out of the workforce, CBO estimates.   
   “Younger, less educated people would account for a disproportionate share   
   of those reductions in employment,” according to the report   
      
   The Deficit Would Rise Too   
   The fiscal effects of a federal minimum wage increase would also prove   
   damaging, according to the CBO report. Overall, deficits would rise by an   
   estimated $46.3 billion over 10 years. Among the major effects, there   
   would be higher spending on Medicare, Medicaid, and Obamacare payments   
   caused by rising health care prices (nearly $30 billion). Additional   
   spending on unemployment compensation (just under $15 billion) would   
   outweigh any increase in payroll and income tax revenue from people   
   earning higher wages.   
      
   https://floppingaces.net/most-wanted/californias-disastrous-minimum-wage-   
   hike-offers-a-cautionary-tale-to-congress/   
      
   --- SoupGate-Win32 v1.05   
    * Origin: you cannot sedate... all the things you hate (1:229/2)