Inflation Triggers Mandatory Minimum Wage Increases in California

[Kamaji]

Inflation Triggers Mandatory Minimum Wage Increases in California

The state’s unemployment rate is well above average, yet there’s a ballot initiative hoping to push the minimum wage to $18 an hour.

SCOTT SHACKFORD
5.13.2022

When California passed a massive boost in its minimum wage six years ago so that it would eventually reach $15 an hour, the law included a component that tied the minimum to inflation levels. If inflation starts getting too high, the law forces a mandatory increase in the minimum wage.

This week, Gov. Gavin Newsom's budget director, Keely Martin Bosler, announced that the massive inflation America is seeing is going to force the minimum wage in the state to automatically increase to $15.50 next January. The law requires this automatic adjustment if the inflation rate grows past 7 percent. The Los Angeles Times reports that it's possible that the minimum wage might rise by another 50 cents if inflation continues.

Bosler, of course, sees only the positive here, saying it will help poor families pay for the higher food prices we're all enduring: "They have a huge impact to those families that are living off of those lower wages and their ability to cover the cost of goods."

The national unemployment rate right now is a low 3.6 percent, which the Biden administration is bragging about—just don't look at the labor participation rate!

Rising wages during this time frame is natural, but it's also worth noting that California's unemployment rate continues to be higher than the national average, sitting at 4.9 percent. Just four states and Washington, D.C., have a higher unemployment rate. According to data from California's Employment Development Department, almost every county in California has higher unemployment rates than the average, and some are running more than twice the national average. Two counties—Colusa and Imperial—have double-digit unemployment rates.

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Source:  https://reason.com/2022/05/13/inflation-triggers-mandatory-minimum-wage-increases-in-california/

[LMAO]

In California, this is more likely to pass.

[LMAO]

The economic illiteracy of the left is astonishing

Even apolitical  people have more economic sense than progressives

[Kamaji]

The economic illiteracy of the left is astonishing

Even apolitical  people have more economic sense than progressives

It's absolutely breath-taking.

[GtHawk]

Small businesses will shutter, QCR's will be cutting back on already short staffing because they won't be able to mark up the menu prices high enough to cover labor and raw product so labor is always the go to for cutting losses. People that have already cut back on trips to restaurants and entertainment will cut back further. In short we have a bitchin example of how socialism works in California, be prepared to watch the bleed work it's way up the coast.