Oof: California is officially raising its minimum wage to $10/hour by 2016

posted at 9:31 pm on September 25, 2013 by Erika Johnsen

Democrats have been trying to make some hay over the issue of raising the minimum wage laws in preparation for the 2014 midterm fight next year, with such staunch advocates as California lawmakers Rep. Nancy Pelosi and Sen. Barbara Boxer — er — “championing” the issue by throwing around arbitrary estimates of what they deem a fair minimum wage sounds like. Generously, their home state of California has decided to step forward and provide a living laboratory of what the consequences of minimum-wage laws, especially in a slumped economy, can look like. Via AP:

California has become the first state in the nation to commit to raising the minimum wage to $10 per hour, with the increase to take place gradually through the start of 2016, under a bill Democratic Governor Jerry Brown signed into law on Wednesday.

The law raises minimum pay in the most populous U.S. state from its current rate of $8 per hour to $9 by July 2014, and $10 by January 2016, well above the current federal minimum wage of $7.25 an hour.

The measure won support from Democrats, who wanted to help low-wage workers in a state where the cost of living is among the highest in the nation, passing the California state Senate by a vote of 26-11 and the Assembly by a 51-25 vote. But it was opposed by many Republicans, who said it would hurt small businesses and ultimately cost some low-wage workers their jobs. …

Brown, protective of the state’s tenuous economic recovery, initially opposed the bill but then agreed to support it after leaders of both houses of the legislature agreed to put off the effective date of the increase until 2016.

Did you catch even Jerry Brown’s initial reluctance there?

I completely share the sentiment and understand the impulse behind trying to alleviate the material hardship of low-income and hardworking Americans, but most unfortunately for these workers, minimum-wage laws are one of the most misguided and absolutely counterproductive ways to go about it. I’ve written time and time again about the job-killing and opportunity-erasing long-term effects of coercing employers into increasing their minimum wage, which certainly sounds easy and just on its face but is just a different and intellectually cheap way of saying increasing the price of hiring — and poor, inexperienced, and young workers end up finding it that much harder to find a job at all. The best way to lift workers out of poverty and create more opportunity is, as ever, to foster a robust and well-functioning economy instead of burdening it with backwards laws like this.


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Well, that’s got to help unemployment.

/

Wino on September 25, 2013 at 9:33 PM

Oof.

Lanceman on September 25, 2013 at 9:34 PM

Does this apply to non-citizens?

rob verdi on September 25, 2013 at 9:34 PM

Hey cali companies… I hear Texas is mighty fine place to open shop…

watertown on September 25, 2013 at 9:34 PM

state’s tenuous economic recovery

Media-speak for “abject failure.” If a republican were in office, the line would say, “decade of falling standard of living and real income.”

Wino on September 25, 2013 at 9:34 PM

yay for federalism.

lorien1973 on September 25, 2013 at 9:35 PM

Make it $100/hour…

Electrongod on September 25, 2013 at 9:35 PM

It’s time to start thinking abut splitting this country into conservative and liberal states.
They will take the entire country over and turn it into a common $hithole world like Detroit.
Time to carve this up, or were gone in 50 years.

FlaMurph on September 25, 2013 at 9:35 PM

Hey business! You wising up to California yet? Take a smaller loss now – get the hell out!

Lanceman on September 25, 2013 at 9:36 PM

Liberalism is a mental disorder.

Mimzey on September 25, 2013 at 9:36 PM

Now the high school kids can TOTALLY kiss off those ‘summer jobs’.

GarandFan on September 25, 2013 at 9:36 PM

When the minimum wage is raised, the cost of living is raised.

Barred on September 25, 2013 at 9:36 PM

What will be the rate of exchange for pesos by then?

How much more stable will Meh-hee-ko’s currency be than ours in 2016?

viking01 on September 25, 2013 at 9:37 PM

…new math!

KOOLAID2 on September 25, 2013 at 9:37 PM

Meh, not my problem.

Punchenko on September 25, 2013 at 9:38 PM

I’m so glad I left.

trigon on September 25, 2013 at 9:42 PM

Let them, let the rest of the nation see what we have been talking about with the unintended consequences of such a dumb idea.

thebrokenrattle on September 25, 2013 at 9:44 PM

ROFL

Neighboring states are preparing their advertising blitzes with glee in their eyes.

Of course Cali libs will be saying “Why am I paying more for everything, I don’t get it!!!”

Bishop on September 25, 2013 at 9:45 PM

News like this will be welcomed in Mexico!

slickwillie2001 on September 25, 2013 at 9:45 PM

These idiots may not have a death wish, but their policies will yield the same result. Idiots.

EA_MAN on September 25, 2013 at 9:50 PM

Hey guys… that is how they are going to be able to afford the ObamaCare hikes!

watertown on September 25, 2013 at 9:51 PM

All of those Californians don’t really need jobs because of Obamacare. Pelosi said ““We see it as an entrepreneurial bill, a bill that says to someone, if you want to be creative and be a musician or whatever, you can leave your work, focus on your talent, your skill, your passion, your aspirations because you will have health care. You won’t have to be job locked.”

The state is just doing its part to help people leave their jobs.

obladioblada on September 25, 2013 at 9:54 PM

Looking forward to all the new completely automated fast food restaurants that will now become reality sooner than later.

The Ugly American on September 25, 2013 at 9:55 PM

Yeah, but they’ll probably have an $11/hr income tax.

gregbert on September 25, 2013 at 9:57 PM

This would be stupid in any state, in particular any state as uncompetitive as California, but particularly an uncompetitive state with vast numbers of people living in what the gentry call The Sticks.

The whole state isn’t Santa Fe. How many businesses in the Central Valley could afford to pay everyone at least $10/hour? That’s a trick question, of course, since so many small businesses in the Central Valley are off the books, Mexicans in trucks.

HitNRun on September 25, 2013 at 9:58 PM

“would you like fries with that, comrade?… and try our new $20.00 “value” menu….”

viking01 on September 25, 2013 at 9:59 PM

HA ha!

somewhatconcerned on September 25, 2013 at 10:10 PM

Why does it sound “just”? It does not sound that way to me.

GaltBlvnAtty on September 25, 2013 at 10:19 PM

Glad i’m not a consumer or a resident at all… in CA. Going to be interesting to see the long lines at the store, for example. When companies have to run skeleton crews just to stay above water. 30 minute wait stopping off at the store to but a $7.00 can of soda? That will last long…

reaganaut on September 25, 2013 at 10:20 PM

So, small business owners are going to see their payroll costs go up by 25%. Think of all the extra hiring they’ll be able to do after that happens.

Bruce MacMahon on September 25, 2013 at 10:28 PM

This should convince the last Hollywood production companies still here to leave CA.

Good news for Georgia and Louisiana!

PattyJ on September 25, 2013 at 10:32 PM

“would you like fries with that, comrade?… and try our new $20.00 “value” menu….”

viking01 on September 25, 2013 at 9:59 PM

Exactly. Those who have never worked outside of government, academia, or concern troll “public interest” groups forget that in the real economy (the one they sneer at as the “private sector” aka “the enemy” in The One’s parlance), somebody has to foot the bill for a wage increase.

That’s why good employers give raises when business improves; they want to hold on to the good workers who made that improvement happen.

When government mandates a wage increase for everybody at the contact end (aka “the ones who meet the customers”), that’s putting the cart before the horse. The employer has to cough up the money, even if traffic doesn’t support it.

So they either have to raise prices (which reduces their sales) or lay some people off to have the money to pay the others (which does pretty much the same thing).

The types who mandate thee things I’m sure “feel” that the employer is “taking too much”, so if he just gives more of his share to everyone else it will all work out, and he’ll be a good proletarian in the end.

They don’t know how little actual profit there is in a business. This could tell them;

Yankee Dood It (Warner Brothers 1956)

But they’d just want to throw the shoemaker behind bars- or in front of a firing squad.

I expect a lot of businesses to either leave the state or, failing that, just close as a result of this. Unless, of course, Moonbeam passes a law prohibiting either one. (Don’t laugh; he’s stupid enough.)

BTW, my first (part-time) job, in high school, was in a hobby shop. For $2 an hour.

OK, granted, I mainly took it out in model kits, paint and etc., but still, the owner got things done, I got what I wanted, and most importantly for the business the customer got served.

He hired me because he was an O gauge “train guy”, and he didn’t know the difference between a P-40 and a P-51 when somebody came in wanting a plastic kit of one or the other. Fortunately, I did, even though to this day I don’t know offhand exactly what the difference between an Alco or a Baldwin-Lima “loco” is.

Yes, he sold a lot more plastic kits after I hired on. Especially after I picked up the data on cars (GTOs, Barracudas, etc.)

If you have a skill, and are willing to work, it can get you in the door. Assuming, that is, that the business can afford another worker.

No, the “friends of the little guy” don’t get that last bit. And I’m not too sure they have the first part down, either.

clear ether

eon

eon on September 25, 2013 at 10:33 PM

Only $10? Democrats hate poor people.

Dongemaharu on September 25, 2013 at 10:38 PM

Why do libs hate the poor so much? Surely $20/hr would be more socially just.

EddieC on September 25, 2013 at 10:46 PM

think of all the extra taxes they can collect…

equanimous on September 25, 2013 at 11:00 PM

San Francisco’s minimum wage is already $10.55, and San Jose is at $10. They’re paying baby sitters here $20 an hour.

But I recognize that California is a huge state, and for many localities the hike doesn’t make sense.

bobs1196 on September 25, 2013 at 11:21 PM

About time for Gov. Moonbeam and the ever irrelevant Lt. Gov. Nuisance to take junket trip to Texas to “see where we are going wrong” to create more jobs.As far as the $10 wage by 2016 I don’t think we have to worry about that Ca. will have collapsed by then.

jeffinsjvca on September 25, 2013 at 11:34 PM

So they raise it to $10 an hour, and raise taxes to take it back…and the government thinks it is clever and never realizes it’s just a ponzi scheme.

right2bright on September 26, 2013 at 12:03 AM

California is officially raising its minimum wage to $10/hour by 2016

Surely there is an exception for Nancy Pleosi’s businesses, as I recall she owns a winery and hotel neither of which are unionized even though Nancy loves the unions.

RJL on September 26, 2013 at 12:11 AM

Here’s an idea: eliminate the minimum wage. Singapore did just that and unemployment is <3%.

Too bad the elites in the media don't tell anyone about that.

nazo311 on September 26, 2013 at 12:24 AM

Well, you are leaving out one rather crucial fact.

Most union contracts are enumerated as an amount over minimum wage, not simply dollars. Any increase in min wage is an automatic raise for all those union members. No other negotiation, possibly impeded by unwilling taxpayers or a nearly bankrupt comptroller, can impede it.

jhnone on September 26, 2013 at 2:06 AM

Why stop at $10/hour? If all it took was a law to make everyone middle class then why are the Democrats so hateful that they would not simply pass a law mandating, say, $75K/year minimum? After all, what could go wrong?

iconoclast on September 26, 2013 at 2:31 AM

2016? That’s plenty of time for automation companies to get the robots ready to take over jobs having the new minimum wage.

AltTuning on September 26, 2013 at 2:47 AM

High wage labor plus technical innovation to increase productivity is the American way.

If low cost labor and a relative reluctance to replace unproductive labor with innovative technology was the best way to go, outright slavery would be the best way to run an economy. It isn’t – even if modern “conservatives” pretend it is.

The solution to unemployment starts with not flooding the market with foreign labor. Turn off the mass immigration tap!

With an endless influx of foreign labor, you’ll have unemployment even if you also have starvation wages.

You’ll also lose your country and your future. Massive, continuing non-white mass immigration plus forced integration is genocide. It means the people being overwhelmed by massive numbers of immigrants and forced to integrate them can’t continue to exist as a group. That’s too high a price for not having to bring in more technology to replace inefficient, overly-expensive workers.

David Blue on September 26, 2013 at 4:21 AM

2016? That’s plenty of time for automation companies to get the robots ready to take over jobs having the new minimum wage.

AltTuning on September 26, 2013 at 2:47 AM

And that’s a good thing.

David Blue on September 26, 2013 at 4:22 AM

IDIOTS

TX-96 on September 26, 2013 at 5:56 AM

Don’t worry about the $10 per hour by 2016. If the Fed continues its current policies that $10 will be worth today’s $.25.

jpmn on September 26, 2013 at 6:57 AM

CaLOLifornia

Freeloader on September 26, 2013 at 7:36 AM

That ought to be enough to finally get the oil companies out of California and into Texas.

Rick Perry has a big smile on his face!

HondaV65 on September 26, 2013 at 8:08 AM

Small businesses should not be punished for something they didn’t cause. How does California’s dismal public school system get a pass?

Rich H on September 26, 2013 at 8:55 AM

I wonder how much McDonalds is going to pay the kiosk type order screen, the one where you order and pay for your food, because that is where the fast food industry will be heading sooner rather than later…

Khun Joe on September 26, 2013 at 8:55 AM

The measure won support from Democrats, who wanted to help low-wage workers in a state where the cost of living is among the highest in the nation

Short-sighted, static analysis.

The Dumba$$es can’t see that raising the cost of labor will put pressure on pricing.

But I’m glad they did it. Just like I’m glad they voted to raise their own taxes (“Give us hell, Quimby!). Let the labortatory that is CA continue to show the country how you can take a prosperous state with plenty of resources, apply leftist policies, and turn it into an outhouse.

mankai on September 26, 2013 at 8:57 AM

“No skills? No history of being on time or performing tasks as assigned? Sure, we’ll be happy to pony up $10/hour!”

Things nobody, except managers of bankrupt green companies, have ever said.

mankai on September 26, 2013 at 9:00 AM

What these do-gooders don’t understand is how much it hurts people making just over minimum wage. Think of the people who have been working at a company for several years. They’ve worked their butts off to get several raises up to say $11/hr from the $7 or 8 they started at, now the new guy comes in and makes $10. The people making just over $10/hr don’t get a raise, but their cost of living just shot up!

Salukidog on September 26, 2013 at 9:20 AM

They should just make it $1000 / hour! Californians will be rich in no time!

GardenGnome on September 26, 2013 at 9:53 AM

Democrats: where the cure is always worse than the disease.

JeremiahJohnson on September 26, 2013 at 10:13 AM

obladioblada.The state is just doing its part to help people leave their jobs unions make more money, even if nonunion jobs abandon the state:-)

jhnone on September 26, 2013 at 10:34 AM

Generously, their home state of California has decided to step forward and provide a living laboratory of what the consequences of minimum-wage laws, especially in a slumped economy, can look like.

And they always told me Social Policies couldn’t be subjected to experiment!

AesopFan on September 26, 2013 at 11:40 AM

obladioblada.The state is just doing its part to help people leave their jobs unions make more money, even if nonunion jobs abandon the state:-)

jhnone on September 26, 2013 at 10:34 AM

I get what they’re trying to do. And I get that this is in fact very bad for people on or just above minimum wage.

I just think that ultimately you have to push ahead with technology and replace labor whenever possible. And whatever the intentions of those who framed this law, and others like it, that will be the effect.

David Blue on September 26, 2013 at 12:36 PM

The cost of hiring and the cost of firing:
http://www.theobamatimeline.com/id720.html

Colony14 on September 26, 2013 at 8:50 PM

I am still waiting for the leftists to explain why being unemployed at $10 per hour is better than being employed at $7.25 per hour.

Colony14 on September 26, 2013 at 8:51 PM

Will those $20 hamburgers at least taste better?

Colony14 on September 26, 2013 at 8:52 PM