Newsom’s minimum wage scam exposed
Democrats have been the party of the minimum wage since the New Deal days of Franklin Roosevelt. Democrats sell it as a benefit to workers specifically – and the economy generally.
It is one of those snake oil policies that is long on alleged benefits but does no good other than politically benefit those who proffer the false benefits. In most cases in the past, the alleged “benefits” get most of the media attention, while the real negative impacts of a minimum wage increase are lost in the political fog. Wages and employee benefits are best left to market forces. Diddle with that and the market forces respond in punitive ways.
Interestingly, many of the very real negative impacts of California Governor Gavin Newsom’s $20 minimum wage increase are not being lost. The public is seeing in real time the downside of minimum wage increases.
We first must understand why setting arbitrary minimum wages creates unfortunate results that far outweigh alleged benefits – and there are damn few of them. Let’s look at the economic effects of arbitrarily (politically) raising the minimum wage. First the positive.
- A very small number of workers will get a pay raise. Full-time hourly workers (35+ hours per week) who make less than the minimum wage are approximately 1 percent of that work force. For part-time hourly workers, it is 3 percent of that work force. An increase in the minimum wage MAY increase their income and purchasing power –BUT ONLY FOR A SHORT TIME.
There you have it. The sum total of all the positive benefits of an increase in the minimum wage – and only for a VERY small number of individuals for a very short time. So, what are the downsides – those outcomes driven by market forces?
- The most obvious is increases in the costs of goods and services – most notably in the economic sectors with the most part-time workers or lower income workers. The Newsom minimum wage has resulted in widely spread price increases – generally in the range of 20 to 40 percent. That impacts the purchasing power of millions of customers – and hits the low-income families the hardest.
- Reductions in work force. In order to avoid price increases – or even in view of them – employers control their personnel expenses by decreasing the number of workers. People lose their jobs – and that is happening in real time in California.
- Postpone future or anticipated hiring. Businesses planning to expand their work force delay or drop those plans altogether. Unemployed individuals, who would be getting a job, do not get a job.
- Reductions in hours worked. To adjust to the new minimum wage, employers can – and do — reduce the working hours for those in their employ. Even the person getting a minimum wage increase will find that their total paycheck has not increased. More money for fewer hours.
- Reduction or elimination of projected pay increases. Economic growth and competition for employees tend to result in periodic wage increases. The worker gaining a wage increase – based on a mandated minimum wage – and those whose wages already exceed the new minimum wage – will not see those “normal” wage increases for an extended period – essentially wiping out the short-term purchasing power benefit from the imposed minimum wage increase.
- Eliminates the jobs of short-term casual labor, such as internships and so-called odd jobs. It negatively impacts charitable labor in which individuals work semi-voluntarily for a very small compensation.
- Contributes to inflation. Some economists argue that a minimum wage increase is not sufficient to impact seriously on inflation – ironically refuting the claims by politicians that increasing the minimum wage has a positive impact on the economy. But the increase does increase prices – and most often in businesses with a high volume of customers.
- Loss of tax revenue. The increase in the minimum wage produces little to no additional tax revenue from those receiving it – many of whom pay no tax at all. It does, however, add to the tax burden for other workers by reducing income tax revenues from discharged workers … increasing the cost of unemployment compensation … loss of tax revenue from lower profits … loss of tax revenue from businesses shutting down.
Increasing the minimum wage by government directive produces no discernible benefit to the economy or to the vast majority of workers and consumers. We see virtually all the aforementioned results in the news reports coming out of California. We are seeing, in real time – businesses raising prices, laying off workers and going out of business directly related to Newsom’s unfortunately imposed increase in the minimum wage.
Proponents of an imposed minimum wage talk about the need for workers to have a “living wage.” The lowest pay scales in the economy are not … never have been … and never will be … a “living wage.”
The economy needs a less than living pay scale for those who do not need a “living wage.” That includes interns and student summer workers. Folks in which the job is a second income – to enhance the “living wage” income of a spouse or parent. It can be to enhance welfare or Social Security. The imposed minimum wage will effectively prevent those folks from having any supplemental income. The minimum wage tends to make such casual labor unaffordable.
A level of compensation below a “living wage” is an integral part of the economy. Removing that from natural market forces does grave damage to the economy and to the millions of people who live in it.
Footnote: Over and above the economic realities of a politically imposed minimum wage, Newsom’s specific proposal is rife with political favoritism. It is a bad idea further corrupted by political chicanery.
So, there ‘tis.
Horist’s grasp of economics is tenuous at best, and his use numerical analytics in general is so poor as to be laughable. This story is supposedly about CA minimum wage and the economic effects. Yet, there are no statistics or economic facts beyond the demographics and demagoguery that these “snake oil policies” will make “market forces respond in punitive ways.” He has few numbers, less statistics, just a lot of aged opinion and modern swagger.
He says these policies will affect “a VERY small number of individuals for a very short time,” a “a bad idea further corrupted by political chicanery” that will be the end of life as we know it…… How bad can it be if it only involves a “very small number of individuals?
Great non-story story, Mr. Horist. Where’s the beef……
As a Trumplicant, Hoirst is top notch at spreading FUD, scant on that facts, and warped in terms of economic theory.
Frank, Frank, Frank. I hate to put it this way, but I have a problem not seeing posts like this a moronic. My commentary is primarily about the minimum wage as a concept and all its established downsides — with the California situation as an example. Rather than ride off on your rampage, you could have explained why you do not agree with the my explanation of the outcomes of minimum wage increases. As far as the untoward details, the media is filled with examples of them. Do you really need to have me spoon feed you every example? I like your throw-away line that my economic theory is warped. LOL. Where is YOUR proof.? Which of the negative outcomes that I noted is wrong in your judgment? Are you saying that increasing the minimum wage does not cost jobs … increase prices … reduce working hours… etc… etc.? You mindlessly attack my economic knowledge and then prove you are clueless. You go on and on how YOU are grounded in issues — and then you post a fact-free ad hominin attack. Such hypocrisy.
Horist equates criticism and critique with ad hominem attacks.
I did not say any of the things you seem to think I said in that first comment.
And yes, actual proof or evidence of your claims would be great. Examples — not so much. Actual quantitative analysis would suffice. For example, telling us what McDonalds or any other business thinks is a biased datapoint. Sure, it’s a datapoint, but paper does not refuse ink and they can say whatever they want.
Example: Pizza Hut reacts by saying they are firing their delivery drivers and will gig it out in the future. Fact: they had been doing that and expanding that well before the price increases.
The reason I ask for evidence is that you seem to feel CA does it. It does not. Your “theory” indicates this is a certainty, but I am pretty sure you cannot find evidence stating that and frankly, neither can I for any other theory on this. You pretty much proved that point, but I thought you might actually have some real support. Analytics. Not just theory.
Frank your politics cloud what in front of your face, I have been priced out of fast food, because Round table pizza wants fifty dollars for their pizza now! I can’t afford that, so I’ll eat at home on my fixed income.
Ron, it’s rare to find my politics affecting my pocketbook. In terms of your comments, you say fixed income, $50 pizza. First, I am just guessing that fixed income means senior citizen. Not that I can judge, but you are buying Round Tables (RT) largest pizza with every ingredient under the sun. But the price is the price and $50 is the price.
RT is and has been one of the most expensive pizzas in CA. Pizza is available on almost every street corner, perhaps an alternative has been appropriate for you for some time. I think Dominos is under $30; but I am sure you can beat $50 in many places.
RT states that 5% of it’s pizza price is due to minimum wage increase PLUS other factors. Remember, I don’t think the increase has taken effect so they kinda jumping the gun. That’s $2.50 of your $50 so, based on your feelings, it appears that $47.50 is your OK price. Personally, at either price I think you are crazy. Just vote with your wallet, there’s plenty of choice I am sure.
This discussion is about minimum wage increases forcing price increase with Horist targeting Newsom and California although if pushed, he denies that and says it’s just generalized theory that requires no evidence, certainly not California. Or something confused like that. You have a 5% problem with RT over that. Don’t tip and you’re whole again.
Seriously though, fact is inflation was bad; some places raised prices because of it, others raised prices to take advantage of it. And some were fair, some gouged. And while inflation is down, a lot of prices have not been lowered. Apparently, these changes are not as instantaneous as the Horist’s of the world would have you believe. Again, for all of us, for all products, vote with your wallet and we can bring these inflated prices down. Has always been the way.
Frank Stetson … At least you should quit lying about what I say. It is that old Larry Horist you invent to overcome the weakness in your statements. You cannot prove me wrong — or get me to debate your stupidity — so you create that other guy. The news is filled with stories of the negative impact of the minimum wage increase in California. LOL And OMG, you recommend Domino’s pizza. Did you ever think that Ron may enjoy a good pizza? Not only do you feed bad information, now you feed bad pizza. LOL
Horist, suddenly you say check out MSM for the truth? Amazing. However, how about some quantitative assessments versus some guy from Pizza Hut mouthing off. You know, statistics like I presented that prove you are wrong. I won’t say a liar, I just think you accept them.
Bad pizza, NJ guy? Hey, your home pizza had to pile in the dough to fake satisfying you via carb overload.
Lying? Still the pugnacious prick throwing the “liar” card without support. I did prove you wrong and it was you. I recognize the Horist face. Long, sad, and ugly.
You belch out: “And OMG, you recommend Domino’s pizza. Did you ever think that Ron may enjoy a good pizza? Not only do you feed bad information, now you feed bad pizza. LOL”
Somehow you created that from my: “RT is and has been one of the most expensive pizzas in CA. Pizza is available on almost every street corner, perhaps an alternative has been appropriate for you for some time. I think Dominos is under $30; but I am sure you can beat $50 in many places.”
Did I recommend Dominos or just say it’s available for $30.
Did I recommend Dominos or say he can beat $50 in many places?
I am sure Ron likes a good pizza. He is, and has been, buying the most expensive pizza from the most expensive shop in CA. I just suggested “perhaps an alternative has been appropriate for him for some time” where only an asshole would conclude it was my mandate to Ron.
When you can actually prove me in a lie —— do it fuck face. Come on. Do it. Just don’t say it, show it, prove it, make it so. Until then, this story and your recent comment: TOTALLY BUSTED
You can’t prove shit. Never could.
FYI: and what do you know about good pizza. You live in Miami.
Straight from the Horist’s mouth: “You cannot prove me wrong — or get me to debate your stupidity — so you create that other guy. The news is filled with stories of the negative impact of the minimum wage increase in California. LOL And OMG, you recommend Domino’s pizza. Did you ever think that Ron may enjoy a good pizza? Not only do you feed bad information, now you feed bad pizza. LOL”
“Your constant silly attack on Florida flies in the face of the folk living here and moving here in record numbers.”
Seems that Mr. Nice Guy thinks Domino’s, an American ICON of small business sucks. Just like a Trumper to trash someone else’s success if he can’t get his slice :>) But remember —- record numbers = good as an assessment from the Horist analytical consultancy……
Instead of Horist shit, some facts: Domino’s started as a friendly takeover in Ypsilanti, Michigan in 1960. Can you get anymore heartland than that? Two brothers (isn’t always two brothers?) put down $500 to buy a small chain, then borrowed $900 for start-up. One bro doesn’t want to quit his post office job so the other trades his delivery VW to complete the takeover. By 65 he’s bought three more stores. In 67, franchise, by 78 – 200 stores. In 98, he cashes out for $1B — yeah, his pizza must suck, a career of selling suck, selling more such than anyone else. Even in Florida where more = better, according to Horist.
Today, closing in on 7,000 US locations, and 90 international markets, Domino’s is the most popular pizza in the world. And using Horistian logic, “your silly attack on” Domino’s, “flies in the face of the folk” in the US and across the world, buying these pizza’s “in record numbers.” Prove me wrong?
And to keep it topical, Florida, the state where pizza comes to die, that state that has banned black olives, red peppers, and any pizza that attempts to look like something else, has about 470 Dominos locations, the third most of any State after Texas and California. Orlando has 27 by itself making it the 8th most Domino’d city in America.
They have more locations, sell more pizza, so it must be good according to the Horist theory of volume = goodness. Given the number of words I write, Horist should think I’m weally, weally goot too. Sorry, sir, your logic is faulty.
BUSTED again. Tell me I’m wrong Horist. Better yet, SHOW US.
PS: A little time ago I fessed up that I tried Dominos for the first time in 2024. I’m from NJ and it’s dangerous to admit you go big business with pizza. But their prices, ordering, and delivery just made it so damned easy. Hey —- it was not bad, it was OK, it was better than frozen. No, Star Tavern is still the best NJ, and perhaps the world, pizza, if you like thin crust. Deep dish, Chicago, true NJ pizza fans say that shit is for amateurs. And Dominos does not make a tomato pie, a special NJ treasure, so that’s still safe, the best found down near Princeton. But in a crunch, Dominos passes muster, better than frozen, and it’s downright cheap. Given Star Tavern is 45 minutes away and my favorite local Northern Italian family run jerked their prices to $26, and even though I get 10% off, I use Dominos upon occasion. Our pizza prices went up without Newsome at the wheel. Sure, it ain’t $50, but it was a 25% hike and inflation didn’t freaking cause that. Covid did. These folks previously seized the covid opportunity and went full bore during the pandemic from pickup to eating outside to delivery and then reaped the benefits milking that cash cow when inflation hit. I expect a price drop soon as everyone is seeking alternatives but they probably don’t mind less customers. They had to hire two guys just to direct traffic Thurs-Sun nights. We’re talking 100 cars in the lot and a constant flow for pickup. And it’s NJ, we have a choice of pizza on every corner.
Secondly, have you ever noticed how there’s more pizza shops than any other food type stores in your town? Have you ever noticed how most are busy, don’t go out of business, and how people will drive past many to get to their favorite with the “best” pizza? We even ran a “best pizza” thread on our town website and every place was loved by some, hated by others. I believe pizza is very, very personal, and that people will drive across town past many popular shops to get a better pie, in their eyes, which can be totally different from their neighbor’s favorite. And the differences make it possible for the volume of stores. In most markets, those numbers would shrink pretty damned quick. I agree with Horist, pizza is not fungible — people have fierce passions for their favorites. That’s why I tempered my words saying: “perhaps an alternative has been appropriate for you for some time” as in maybe, perhaps, and not the MANDATE that the overly sensitive Horist wrongly perceives. I believe pizza is personal and if the $50 everything YUGE pie is your favorite, you may not be able to go elsewhere. But I do for $26. And for $50, I would strongly suggest looking at alternatives. If they are at $50, Domino’s is at $30, don’t you think there’s a world of pizza in between?
Or do Republican’s feel that getting cheap pizza is more important than getting a living wage instead of slave wages?
Slice that and fold it where the sun don’t shine (your mouth!)
As a consistent Trump voter, Horist obviously knows little about the economy following a businessman who could only succeed by gaming the system and cheating others for loans, tax payments, and more. Trump, and I guess Horist since he loves those Trump programs and policies, actually believe they can write down the national dept. Genius in economic of sovereign nations he is not. I wonder if Horist loves the family separation policy too? Or cares about the 1,000 kids who have not been reunited with their families yet.
Horist lists one giant fact: “The Newsom minimum wage has resulted in widely spread price increases – generally in the range of 20 to 40 percent.” When you see weasel words like “widely spread,” “generally,” and a 20-point spread, you know it smells. This is the main “punitive action” he claims in his story that’s backed by a number.
The rest of his screed talks concepts, conjectures, and outright fantazies that he does not support with any numbers, statistics, for California or anywhere. Ask yourself this —– if a rising minimum wages means all this Hoirst shit, then why aren’t we in deep kimchi right now? Since the late 30’s, the minimum wage has risen over two dozen times. So far, our gdp has grown, our workforce has grown, our total assets have grown, the fact we are here, we are OK, says Horist is wrong.
Oh my God, prices are rising 40% in California, the horror of it all. Perhaps I exaggerate, how about…. OH MY GOD, prices are rising 20% in California, the HORROR of it all.
He’s spewing about Newsome’s $20 minimum wage law: that took place 4/1/2024. Neat trick Horist. Ignoring his obvious guffaw, and using all hikes since 2020, CA prices have gone up 20%. According to BLS, LA is at 3.4% inflation, yearly. *https://www.bls.gov/regions/west/news-release/consumerpriceindex_losangeles.htm* I think Horist is wrong on 20-40%.
Funny note: Dallas is at 5.3% for inflation and Miami is at 4.9% proving how much better Republicans like Horist can handle an economy. Miami is the worst, Dallas second and LA —– wait for it — sixth. *https://wallethub.com/edu/cities-inflation/107537*
BUSTED
Frank Stetson …This last rant is why I do not bother with you very often … and not in any debate. It is because anyone with any knowledge or common sense is a ware that you spew mostly hate and bias driven bullpoop driven by a pathetic obsession. You posts need no point-by-point rebuttal because they are self rebutting. Your occasional link as “proof” is seen for what it is — selective and often inaccurate reports. Your constant silly attack on Florida flies in the face of the folk living here and moving here in record numbers. You are a fool if you think you points resonate with more than a couple of people who even read them. I cannot help but assume that you devote so much time and emotion to your obsession that you have no life — except reminiscing over those days of glory to which you constantly refer — and embellish. Not to mention you sad efforts to impress with your financial good fortunes. But if that is all you have… enjoy.
My numbers are spot on, you wage a feckless retort without support and much hand wringing.
Your 20-40% CA price increase upon which your entire “theory” rests is: wait for it……wait for it
I did not pick Florida, or Miami —— Miami picked it by being the worst, the absolute worst, if the land of DeSantistan. And Texas, the land of Abbotstan, is the runner up. Whatttta ya, afraid of a little comparison? Seasons don’t fear the Stetson, and neither do those who debate merits supported by facts.
BUSTED
Frank Stetson … No one fears the Stetson because no one hears the Stetson. LOL
Right back at you, you grinning ghoul.
“You posts need no point-by-point rebuttal because they are self rebutting” says Horist. I re-read this screed, and as a rant, he goes off the rails. I instantly penned a point-by-point but then realized I can sum him up in one word:
FEAR
It’s FEAR that makes Horist deal in FUD. Its FEAR that makes him shy away from response to support his stand.
Is he so afraid to respond because he fears he cannot defend his story? His FEAR of failure by the facts? Afraid if he toes the line, he might be knocked down?
So instead he launches a personal attack rant chock-a-block with generalities which he uses to hide behind instead of a real response. The great debater my sweet billypots. He is afraid.
Fact is, Mr. Horist, whether you try or not, whether you win (as it is all about for you), or not, does not matter.
To paraphrase TR: “It is not the critic who counts; not the man who points out how the argument stumbles, or where the story could have been better. The credit belongs to the man who is actually in the debate, whose face is marred by newspaper, screen, link, and database; who strives valiantly; who errs, who comes short again and again, because there is no effort without error and shortcoming; but who actually strives to discuss; who knows great ideas, the great visions; who spends himself in a worthy debate; who at the best knows in the end the triumph of facts over fictions, and who at the worst, if he fails, at least fails while debating honestly, fairly, and without personal attack or admonition, so that his place shall never be with those cold and timid souls who neither know victory nor defeat, or even the discussion.
Perhaps flowery, but you get the point. Let’s discuss, let’s debate, and let’s end this type of rant and hopefully turn down the ad hominem.
Frank Stetson … What is it that makes you so irrationally obsessed with me ? First … You little “fear” theme is prima facia nonsense. Just nasty talk to try to goad me into some sort of ongoing debate with you. And you talk ABOUT me — your invented me — to the audience you do not have. That is pathetic.
You write: “Let’s discuss, let’s debate, and let’s end this type of rant and hopefully turn down the ad hominem.” How many times do I have to explain to you that I am not here to debate you. I do not fear you, as you would like to believe — or maybe you do believe in you whacko mind. I have zero interest in debating with you because I have not respect for you integrity — intellectual and other wise. Even my efforts to make you see the reality of it all is too much a waste of my time. You cannot entice me with our attacks .. your lies .. your begging … your spinning … or your pathetic repetitious whining. Damn! I really should have done better to keep my New Years resolution to ignore you. I will try to do better in the future.
Horist: why do you think it’s me? You can’t debate anyone. The only good discussions you have are in agreement before you start as you pat each other on the back.
The question stands for any PBP writer.
You believe in free speech EXCEPT criticism.
FEAR and FUD — your stock in trade.
“This last rant is why I do not bother with you very often … and not in any debate. It is because anyone with any knowledge or common sense is a ware that you spew mostly hate and bias driven bullpoop driven by a pathetic obsession.” Lots of nice words, tis your opinion, but so what? Or is it that you just don’t have the balls to respond to the facts I present? You make a living spreading FUD but FEAR your critics.
“Your occasional link as “proof” is seen for what it is — selective and often inaccurate reports.” Except you cannot respond to actually prove that conjecture, have you? Find one. Try one. Fight the FEAR, stand up, toe the line and show us the money. Show me a selective and inaccurate report. Come on, it must be easy for you. You say it is, so do it.
“Your constant silly attack on Florida flies in the face of the folk living here and moving here in record numbers.” Yeah, and only fools fall in love. I pose a valid response from WalletHub where Miami is number one, Dallas is number two, and you’re pick for “the sky is falling”, Newsom-did-it LA is number 6. Why are you so afraid of facts? Why do you think this have something to do with anyone moving to Florida? Can your really be that sensitive that you need to block out facts? You support free speech but can’t face facts and attempt to demean, degrade, and divert from anyone one who uses them to push back on your ludicrous, oldster, ideas from the 60’s. Show us that WalletHub is wrong and Miami is not Queen of the PIgs when it comes to inflation in DeSantistan.
“You are a fool if you think you points resonate with more than a couple of people who even read them.” What’s the importance of that? While you may be so narcissistic as to measure worth by how many read you, I have no such metric so this is meaningless. I mean if I was into readership, why would I even be here to begin with? If popularity as a paid writer is your metric, I am pretty sure you lose in the world of writers. But if my metric is to get your goat by posing theories, ideas, facts, and factoids that you are too afraid to even attempt to respond to, well, if that was my metric, and it is not, then I guess I would win. Since winning seems so damned important to you.
But the best is: “except reminiscing over those days of glory to which you constantly refer — and embellish.” Eh…..that’s minor glory. And embellish? Prove it or STFU and don’t even try “shots.” Come on, prove my embellishment of anything. Go for it. You said it, now back it up.
Yeah, you’re right, I need to move away from this tedium. And I have been doing a bit better. But, as I said, I am screen-based, take breaks, and really, you guys are not to hard to respond to. You’re pretty bad and not exactly getting a lot better. I little, but not a lot.
In the end, I guess you do win since there is no reason to respond to this personal crap versus a decent discussion of the issues. You can respond to the sycophants, the believers, you fawn all over each other, but you just can’t hold a candle to any detractors, at least the ones that are not just total ravers. And sorry about my finances — but it’s what I do now — and Tom and I like to converse about it just like you do about your life, your family, your anecdotes. I understand we are not important to you. But yet, like bees in one’s bonnet, there’s that buzz.
At least Trump worked for his money unlike the the Biden’s or Clintons that just STOLL THE MONEY.
The Clintons and Biden’s Stoll Millions as were Trump was worth BBBBBILLIONS when taking office.
This is the fear of the Elites that the Bezos, Zuckerberg’s, Musk’s, may want to run for president.
So lets Crucify Trump and his people to set the example.
The 20.00 an hour is one big SUCK UP!
Typical Democrat!
Actually Trump got his money from his Dad. And if he just put it in T-bills, he would richer today.
Instead, the tax payers bailed him out six times on our dime.
Joe and the Clintons never got bankrupt.
His Dad one time bought 1,000,000 in chips and destroyed them to float him some operating cash.and was sanctioned
Joe and the clintons never got one million from their dad to help them out.
The Trump family got billions on the cuff to invest from the saudi killer prince. Joe and the clintons never got anything close to that.
Get your numbers right Darren.
And one last thing, one more time —– Horist —- any COMPETENT economist will tell you that there is no direct effect of salary to prices. It matters, but few in corporate America used cost-plus pricing strategies. And small business pricing flows down from that. I have priced entire corporate product portfolios —– hundreds of products, tens of thousands of codes, paid millions for McKenzie and Andersen support and yes, we factored inflation —- but such a minor element… It is connected, but not direct. Because it’s in the soup with profit, margin, competition, supply, demand, a plethora of pricing factors. In the case of my Fortune 100 product portfolio pricing, it was volume and rental cannibalism that held the biggest weight in the equation. That’s what the consultants brought to light. If we cannibalized our rentals due to low pricing, we lost profit. Lots. We were better off with a slow drain to competition, than a speedy loss to ourselves. Second, we owned huge US factories — very expensive UNLESS operating at a certain percentage. If we priced high and fell below that volume floor, we died. If we priced right and exceeded the volume threshold, profits flew in disproportionally to the cost. Now, that’s a big company view, but remember, our price, not inflation, was the primary number that dictated what the rest of the market would do. We were the target, not inflation.
Also, as I have asked you many times, look up the concept of “price stickiness,” it has a lot to do with the actions. No way does a minimum wage increase = an immediate and direct price effect. Never has, never will. In your CA piece, which you admit is not your support so why you added it, I don’t know, but I guarantee you have no statistical proof and lots of anecdotes from biased mouthpieces lobbying against. And some for. Round Table Pizza states the minimum wage hike costs 5% in price. You said 20-40, that’s a big difference. Another said they were firing drivers and gig-driving now. Well, they were doing that and would do that, and the same number of drivers, drive —- just employ by the gig-master. That said, some things, like groceries are indeed more affected, and faster, than say —– car price movements, but still — not direct, not even immediate. Competition matters too. I am amazed how I can cross the river NJ to NYC and find better food for comparable prices in a place with much higher overheads than NJ — where the view of NYC is even better. But NJ “gigs” us by charging NYC prices and NYC’s fierce competition means prices closer to NJ, in many cases. And, as we see, it takes longer to come down than to go up, it’s stickier to reduce price than to increase. But come down they will as inflations lessens and, more important, stabilizes, because, in the end, the market decides and COGs is only part of that decision.
Yes, COGs is a major part of the price decision, and perhaps 100% for a small business that runs on a cost-plus model making a fixed percentage off every price, but it’s not a direct line that when salaries increase, price increases. And price increases to small business start with big business where they get most of their products. Because if what you say is always true, prices would go up every day, all the time, as people get their raises, which everyone has gotten since they began work.
Next, I will counter Horist’s lack of imagination and put out there, the perceived benefits of a minimum wage increase. But will actual facts to support the claims. Will take a while, finishing taxes and trying to remove my penalty for lack of prompt payment. Horist loves to hear my money-life, and will be overjoyed to know I made so much under Biden, with minimum wage increases, that I am underwater —- tax wise and owe 5-digits, plus penalty.