California Politicians Keep Raising the Cost-of-Living

Ever since the surprise victory of Donald Trump on November 8th, California’s Democratic leadership have asserted their determination to thwart the Trump agenda. Expect unity and resolve from California’s legislature, where democrats now hold a super-majority in both chambers. Even before Nov. 8th, California’s legislature was a trend-setting force, enacting laws intended to set an […]

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3 replies
  1. Warren Franks
    Warren Franks says:

    Very frustrating! The problem (the “Cost of Kindness”) will never be solved by government largess: Where does the money come from? If we take from the middle class to guarantee the poor access to the middle class, we end up shrinking the former and enlarging the latter. The Rich, Middle Class and Poor, are always relative terms. When we use government mandates to reallocate wealth, we feed “the machine.” Indeed, the left has its own “Trickle Down” theory; give us your taxes and we will give it back to you in programs that will make you happy, rich, successful, well educated, and (Ta Da!) part of the middle class. We’ve created “Robber Bureaucrats,” to compete with “Robber Barons.” I say, a plague on both houses.

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  2. Ronald Stein
    Ronald Stein says:

    The elderly are being hit the hardest as a result of over regulations on businesses and our unsustainable government pension plans that CalPERS is trying to fund. Raising the minimum wage is the equivalent of applying a band aid to cover the rising costs for everyone that just buys votes for reelection, but does not heal the wound of why the costs are rising. The better solution would be to HEAL the wound by DECREASING the over regulations, over taxation, and uncontrollable “fees” on businesses as the California financially challenged will continue to disproportionally pick up the costs “camouflaged” at businesses.

    With one stroke of the pen, the do-something Legislature has bought the votes of the high wage earners and the financially challenged. Higher wage earners are rejoicing as the impact on their wages will be fantastic in the next 10 to 20 years. Our elected officials never look at the unintended consequences that higher wages for everyone will benefit the rich more than those on minimum wage.

    The new minimum wage crusade will result in ALL wages increasing, and every product on the market. Cost Of Living Adjustments (COLA) to wages favors the well paid: A 3% COLA adjustment for someone making $100K will result in their compensation being almost $135K in 10 years, but for someone making $30K, their compensation will be $40K in 10 years. The unintended consequence of raising the minimum wage would be $24K more for the well compensated as the financially challenged continue to fall further behind.

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  3. Dale Okuno
    Dale Okuno says:

    Good article. When will a critical mass of the people learn (and hold our “leaders” accountable) that free markets represent an incredibly complex, efficient, and sometimes delicate, ecosystem that must be respected. Yes, we need taxes and government for many things (e.g., to enable shared resources for the pubic good (e.g., roads, utilities), protect us from monopolies/lack of competition, etc.). But when public policies unnecessarily interfere with the invisible hand of free markets, it generally de-optimizes the flow of goods and services and often leads to unintended consequences.
    This year I shut down a restaurant that had employed about 60 people. A bogus class action lawsuit (expensively settled), and the expectation of increasing minimum wages, were among the factors in my finally giving up. Most of these employees will find new jobs, but I believe there is a much bigger, unintended, consequence of the minimum wage hike. As Ed Ring shares in his article, some restaurant chains will be implementing order-entry systems that will largely eliminate food servers. Food servers and communities in other states will have California to thank for the jobs they will be losing as nationwide chains extend their new automated server-less systems into their state.

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