Note from Steve: As a California resident I will directly feel the impact of this minimum wage increase very soon. California will become an international magnet for low income workers. California will fill the bottom with people from all the States and all the nations, therefore we will develop a 2 class society. The minimum wage guarantee block and those who are paying from them. Is there a silver lining to this minimum wage fiasco?
California and New York acted Monday to gradually push their statewide minimum wages to $15 an hour — the highest in the nation — as Hillary Clinton and Bernie Sanders again seized on wage disparity and the plight of the working poor in their fight for the Democratic presidential nomination.
Clinton joined New York Gov. Andrew Cuomo at a raucous rally in Manhattan as he signed the law that will gradually boost that state’s pay rate. The former first lady predicted the movement will “sweep our country.”
Sanders said in a statement that his campaign is about building on the steps in California and New York “so that everyone in this country can enjoy the dignity and basic economic security that comes from a living wage.”
The new laws in California and New York mark the most ambitious moves yet by legislatures to close the national divide between rich and poor. Experts say other states may follow, given Congress’ reluctance to act despite entreaties from President Barack Obama.
In a statement, Obama commended California and again urged Congress to raise the federal minimum wage. “It’s time for Congress to step up and do what is right for every hard-working American and for our economy,” he said.
In Los Angeles, Gov. Jerry Brown was cheered by union workers — some chanting in Spanish — as he signed a bill into law that will lift the statewide minimum wage to $15 an hour by 2022.
The bill’s effects could vary widely in the vast and diverse state, from sparsely populated mountain and desert areas to inner city Los Angeles and wealthy Silicon Valley.
While it was a victory for those struggling on the margins of the economy and the politically powerful unions that pushed it, business groups warned that the higher wage could cost thousands of jobs as employers are forced to provide steadily bigger paychecks.
A $15 base wage will have “devastating impacts on small businesses in California,” Tom Scott, executive director of the state branch of the National Federation of Independent Business, said in a statement. “Ignoring the voices and concerns of the vast majority of job creators in this state is deeply concerning and illustrates why many feel Sacramento is broken.”
The bill was pushed through the Legislature by Democrats — who control both chambers — without a single Republican vote. A nonpartisan legislative analysis put the cost to California taxpayers at $3.6 billion a year in higher pay for government employees.
Brown, a Democrat, never specifically addressed criticism of the bill but argued the decision to set the nation-leading wage was about “economic justice.”
“Economically, minimum wages may not make sense,” the governor said. “But morally and socially and politically they make every sense, because it binds the community together and makes sure that parents can take care of their kids in a much more satisfactory way.”
The California bill will bump the state’s $10 hourly minimum by 50 cents next year and to $11 in 2018. Hourly $1 raises will then come every January until 2022, unless the governor imposes a delay during an economic recession. Businesses with 25 or fewer employees have an extra year to comply.
Wages will rise with inflation each year thereafter.
Brown negotiated the deal with unions to head off competing labor-backed ballot initiatives that would have imposed swifter increases.
About 2.2 million Californians now earn the minimum wage, but University of California, Irvine, economics professor David Neumark estimated the boost could cost 5 to 10 percent of low-skilled workers their jobs.
Brown has said California, with the world’s eighth largest economy, can absorb the raises without the problems predicted by opponents.
California and Massachusetts currently have the highest statewide minimum wage at $10. Washington, D.C., stands at $10.50. Los Angeles, Seattle and other cities have recently approved $15 minimum wages, while Oregon officials plan to increase the minimum to $14.75 an hour in cities and $12.50 in rural areas by 2022.
New York’s state budget includes gradually raising the $9 minimum wage to $15, starting in New York City in three years and phasing in at a lower level elsewhere. An eventual statewide increase to $15 would be tied to economic indicators such as inflation.
Sanders has made the $15 wage a foundation block of his candidacy, while Clinton backs Senate legislation that would enact a federal minimum wage of $12 an hour, with the ability of individual cities and states to set a higher threshold.
Am I screwed or is there a sliver lining for me and millions of other California business people?
Need your input.
input?? sure, I got 2¢
Gov. Moonbeam gave the best argument a couple weeks ago for electing Trump as POTUS, swaying even my opinion a little;
Jerry Brown: If Trump is elected, we'll build a wall around California
Works for me...wall them off..ship every libbie there and leave the real USA to real Americans. Go TRUMP!
Steve-- My input.
Re, your question "Is there a silver lining to this minimum wage fiasco?" "Silver lining," no. In fact, the new base pay law will prove far from being a goldmine for anyone, not even the pandering left wing lunatics who passed this doomed legislation.
As Tom Scott said, the law will reap "...devastating impacts on small businesses in California...” And those to be hurt the worse will be the demo group targeted to gain-- California's low end, upstart younger workers, whose hours will be cut. Some will even suffer layoffs.
The closest thing to a "silver lining"-- even more painfully demonstrative evidence by this time next year that Socialism does not work.
Minimum Wage increases by the iron fist of the dc regime, IS NOT GOOD FOR THE ECONOMY! Lowinfos don't get it that the burger flipping jobs are meant for entry level employment. Bulk of the equation is that the US economy no longer has the employment available, that is better paying jobs, that bring in a decent wage. I can give you my history, since I graduated High School in 1973. We had the "heavy industry" employment, Steel Mills and places that would manufacture. You had to perservere to get hired. I made a Living in the Plant, not bad, at least twice the Min Wage at that time. The US economy began sinking in the early 1980s. I lived through these times, high unemployment. We kept taking wage cuts/benefits also cut to "save our jobs." Didn't work, since the politics was set up to erode the so called "middle class". This is nothing new, except it is coming to frutition with the current dc regime. 1. Minimum wage, entry jobs for teenagers, temp part time. 2, keep looking for better paying employment, (if that is missing from the equation, what the eff can anyone realistically expect? Made in China sure saved us a lot of money at the stores, huh?
Made in China means CHEAPLY MADE. Junk, Garbage. I have to buy a belt every 3 months because they fall apart.
Try workout/running shoes. Flimsy and flat, lots of junk pissazz instead of quality. Look at the dog ugly quality of leather. China = junk.
Have to wonder what kind of leather they use. Toys were painted with lead paint. What good is China to us? NONE.
DeniseInAZ. I have a true story about China.
My dear Mother was a Chemist for FDA, Customs and Consumer Product Safety Commission, throughout her life. She was always the woods specialist but occasionally helped out in textiles when they were jammed.
One job she was given was to analyze a pair of shoes from China. (Each thing was analyzed for correct information given, which dictated the tax rate on the product. She always said Customs was the only profitable agency in the Fed Govt., they took companies to court all the time for lying about the materials in the product.)
She tore open the shoes, and found a 1” thick chunk of lead in the heel of the shoe. She had to analyze it anyway although she knew what it was by looking at it, and sure enough, it was lead. Lead is dissolved by minute traces of acid, which is what perspiration is, so the lead in the shoes would be absorbed by the person wearing the shoes.
The second set of shoes that she analyzed was full of dirty rags from their landfill most likely.
She wrote the report and submitted it to her superior, who promptly buried the final commentary on the last page of the report, instead of on the cover page as my Mom intended. My Mom was so pissed off she swore to never let her boss do any of her cover pages again.
So, a superior in a Federal Agency—Customs—buried the fact that China was cleaning out their dumps and placing this poison in products heading to America.
They also don't have any quality control. Remember the pets they were killing with their pet food? China is a disgusting country, so is Mexico. Who knows what is coming north of the border, especially since they don't seem to like to wash their hands.
Silver lining: I agree with John P. that it might just have to get worse for the dumbots to wake up and then to actually figure out that they can leave the stupid state and maybe survive and prosper in another state, maybe like Wisconsin.
They (Wisconsin) are not so p'ssed off, due to good governance by Scott Walker. They proved that yesterday through their votes. Maybe former Kalifornia citizens (are there any citizens...) will go to Wisconsin.