$15 Minimum Wage to Cost California 400,000 Jobs

california minimum wage

It was only a few years ago that the concept of a $15 minimum wage would be mocked on both sides of the political spectrum. Heck, I remember arguing many years ago against a hike in the minimum wage from $7.25 to $9 or $10 an hour by asking, “Well if that’s so great, why not $15 or $20?” I didn’t anticipate living in a world where the response would be, “great idea!”

The so-called “Fight for Fifteen” (mainly led by labor unions, which would like to see higher union dues) has managed to make the ridiculous proposition a mainstream rallying cry among Democrats, and was further popularized by the candidacy of Bernie Sanders. The Democratic Party later would add the $15 minimum wage to their party platform.

Thus far, a handful of cities have passed legislation allowing for $15 minimum wages to be phased in over the next couple of years (and as we’ve reported, there’s been plenty of suffering even before the full $15 minimum has gone into effect).

Despite all the economic evidence against significant hikes in the minimum wage, California decided “screw it,” the laws of economics don’t apply. After passing a bill that would raise the state minimum wage to $15 an hour by 2022, Governor Jerry Brown acknowledged that “economically, minimum wages may not make sense,” but that he’s doing this for “economic justice,” or some mumbo-jumbo like that.

Now, what will the costs be? A new study is out and it doesn’t look good.

According to Fox News,

A study conducted by the Employment Policies Institute (EPI), which analyzed employment trends from 1990 through 2017, found that each 10% increase in the minimum wage in the Golden State has resulted in a corresponding 2% decline in employment for affected employees. The impact was larger, 5%, for lower-paid workers. By those estimates, the EPI projects that the pending $15 minimum wage hike would cost California 400,000 private sector jobs, with heavy losses in both the foodservice and retail sectors.

As of January 1, California’s minimum wage will increase to $11 per hour from the current level of $10.50 per hour for businesses with 26 employees or more. From that point, it will be a $1 per year increase trajectory through 2022. Businesses with 25 employees or less will reach the $15 per hour threshold by 2023.

It also must be noted that since California has an above-average cost of living, the adverse effects of a $15 minimum wage would be significantly larger in your average state. The cost of living in California is about 10 percent higher than the national average, meaning the equivalent of a $15 minimum wage in an average cost-of-living state would be about $13.50.

Share this story if you think Californians are ignorant about economics!

34 thoughts on “$15 Minimum Wage to Cost California 400,000 Jobs”

  1. They will fill the jobs with illegals paid off the books. They will have two or three legitimate employees up front and the illegals in the kitchen. This is a common practice now, without ridiculous minimum wage.

  2. Moonbeam as He’s called is literally going to kill that entire state. If it doesn’t burn down first, that is.$15 an hour is outrageous, imagine how many businesses will either shut down, or move the hell out of there, taking away more & more jobs. Go greedy, end up with nothing, and no job! Half of those fast food workers are barely worth $3. But $15? Maybe $15 per DAY would be more like it. Especially the ones who can’t even speak English clearly. Or they look like circus freaks with their piercings and ugly tattoos.I wouldn’t ever hire anyone who looks like that.

  3. You know the $15.00 really going to hurt. People who can’t work due to disability or retirement and on SSI they only get $850 to $1500 a month. Are they going to raise SSI or SSD for those people? Or are they going to let them suffer?

  4. You must be a Democrat with all your wisdom just think you won’t have to go to the cemeteries to get new voters just open the borders. Thank you for being so understanding.

  5. I think$100/hr is good. Open the borders. Let everyone in. Pay for all the illegals’ health care, housing, food, and give them spending money. Pay particular attention to allowing Mexican gangs into large cities. Put the illegals ahead of current citizens. Give them priority over jobs and colleges. Start making colleges teach in Spanish and require students who need English instructors pay more. Open all borders to terrorist countries. If anyone is accused of Islamaphobia, execute them.
    Get our wonderful FBI involved with this. Make Hillary Queen of the USA. Take all guns away from everyone, including the police and military. Sing Kumbaya around the campfire with Osama Obama. Make black tar heroin legal, and lower the drinking age to 10. There, I’ve solved all our problems the Liberals’ way.

  6. People are leaving California in record numbers. They are going to states with lower taxes, and better employment opportunities. Housing costs in Texas, for instance, are about half of that in California, even more in cities. It doesn’t matter that you might make only half as much at a job in Texas, if you can GET one, there, and pay less taxes, and your housing is 1/2 to 1/6 of what it would cost in California, even AFTER taxes. Just leave your liberal mindset in California when you come.

  7. What people are NOT seeing is min wage was always for intro jobs and everyone knew that, there was no problem with that fact in the past. (most companies pay over min anyways IF they need that employee) .. So why now? Why all of a sudden after years of knowing what min wage meant are we having this issue? That is the question that needs to be asked. What is my opinion, well for the last so many years our good jobs have been crushed, in this area alone 3 years ago they had to extend unemployment twice! That has never happened in history (which made the fund go more broke, think about it, if less people are working and so many on unemployment, then where is the money going to come from to extend this benefit duhhhh ). What happened is good jobs, went down the tubes, high paid companies laid people off. When they went out looking for another job all that was left was min wage jobs. There is where it happened.. I do not care what the unemployment rate is, the main fact is what type of jobs did these people get after losing a 18.00 an hour job and higher? This is why we have this issue, we have good experienced educated people that had to lower themselves to min wage paid jobs the last 4 years. That is why they say they can not raise a family on min wage.. Of course not, it was not made for people raising a family. The problem was our past administration destroying our good jobs in the first place and that is what needs to be regained.. NOT raising the min wage.

  8. Don, He’s a CREEP! He loves the freebies, booze, viagra, and is velcro’d to the ones who give him what he wants! In “exchange for”….He wants the grateful POOR and illegals for their votes, the rich for their money, which as usual, leaves the middle class OUT! NO Democrats support the middle class! because most vote Conservative! Hello? It’s sickening!

  9. I guess you need to address your fellow voters on this one. Time and again they keep electing miscreants like Brown. What’s wrong with their brains. Don’t they see how the liberals have f%^&ed up your state. Unreal.

  10. Can somebody, ANYBODY, please take this jack ass off of our hands. California is dying and this idiot is the reason. Recently, during what is now the biggest fire ever in the history of California, Gov. Moonbeam blamed Donald Trump for the fires. Forgetting, of course, that Gov. Moonbeam has actually been the one in office when four out of 10 largest fires in California were during his tenure. You can’t make this up how stupid this man is. But he’ll show you every day, given the chance.

  11. Good going, California. Not only will you lose thousands of jobs from the minimum wage increase, but businesses are leaving in droves, you want to secede from the Union, AND, if that’s not enough, you will lose BILLIONS in Federal funding because of your official status as a sanctuary state! My home state is falling apart. I can safely watch the demise from Arizona.

  12. Good going, California. Not only will you lose thousands of jobs from the minimum wage increase, but businesses are leaving in droves, you want to secede from the Union, AND, if that’s not enough, you will lose BILLIONS in Federal funding because of your official status as a sanctuary state! My home state is falling apart. I can safely watch the demise from Arizona.

  13. Why only $15.00 an hour…??? Why Not $50.00..??? I’m mean if you aren’t going to let the businessmen run there business, just do what ever will cause people to vote for you, after all reality is no-longer needed right…? May as well let the kids play on the freeway while you idiots are at it…just saying!

  14. Pay the illegals anything you want. I don’t care. I have the right to avoid your business or your product.

    I agree that no one can live on minimum wage and in cases like that you have to work two or three jobs, but I also observe that quite often these people can afford nice cars and great clothes. Fifty years ago, when we were starting out, we didn’t have the option of another job so we pinched those pennies so hard the eagle was screaming, but we did it and they can do it today.

    I volunteer at a very nice church/charity resale shop that gets in some very nice items. I see people from all walks of life buying clothing there and with the price rotations, every week there are very nice 99¢ articles of clothing and shoes of all types.

    Somehow people have it in their head that they must start out with the same things everyone else had. We never expected anything other than what we earned. There was no one to help us and no charities that I knew of….maybe in large cities, but not where we lived. People survive.

    I grew up in California (left nearly 50 years ago) and they are more than welcome to do whatever they want, but they should not expect the taxpayers of their state to swallow this forced benevolence.

  15. Pay the illegals anything you want. I don’t care. I have the right to avoid your business or your product.

    I agree that no one can live on minimum wage and in cases like that you have to work two or three jobs, but I also observe that quite often these people can afford nice cars and great clothes. Fifty years ago, when we were starting out, we didn’t have the option of another job so we pinched those pennies so hard the eagle was screaming, but we did it and they can do it today.

    I volunteer at a very nice church/charity resale shop that gets in some very nice items. I see people from all walks of life buying clothing there and with the price rotations, every week there are very nice 99¢ articles of clothing and shoes of all types.

    Somehow people have it in their head that they must start out with the same things everyone else had. We never expected anything other than what we earned. There was no one to help us and no charities that I knew of….maybe in large cities, but not where we lived. People survive.

    I grew up in California (left nearly 50 years ago) and they are more than welcome to do whatever they want, but they should not expect the taxpayers of their state to swallow this forced benevolence.

  16. They will fill the jobs with illegals paid off the books. They will have two or three legitimate employees up front and the illegals in the kitchen. This is a common practice now, without ridiculous minimum wage.

  17. Moonbeam as He’s called is literally going to kill that entire state. If it doesn’t burn down first, that is.$15 an hour is outrageous, imagine how many businesses will either shut down, or move the hell out of there, taking away more & more jobs. Go greedy, end up with nothing, and no job! Half of those fast food workers are barely worth $3. But $15? Maybe $15 per DAY would be more like it. Especially the ones who can’t even speak English clearly. Or they look like circus freaks with their piercings and ugly tattoos.I wouldn’t ever hire anyone who looks like that.

  18. You know the $15.00 really going to hurt. People who can’t work due to disability or retirement and on SSI they only get $850 to $1500 a month. Are they going to raise SSI or SSD for those people? Or are they going to let them suffer?

  19. I think$100/hr is good. Open the borders. Let everyone in. Pay for all the illegals’ health care, housing, food, and give them spending money. Pay particular attention to allowing Mexican gangs into large cities. Put the illegals ahead of current citizens. Give them priority over jobs and colleges. Start making colleges teach in Spanish and require students who need English instructors pay more. Open all borders to terrorist countries. If anyone is accused of Islamaphobia, execute them.
    Get our wonderful FBI involved with this. Make Hillary Queen of the USA. Take all guns away from everyone, including the police and military. Sing Kumbaya around the campfire with Osama Obama. Make black tar heroin legal, and lower the drinking age to 10. There, I’ve solved all our problems the Liberals’ way.

  20. People are leaving California in record numbers. They are going to states with lower taxes, and better employment opportunities. Housing costs in Texas, for instance, are about half of that in California, even more in cities. It doesn’t matter that you might make only half as much at a job in Texas, if you can GET one, there, and pay less taxes, and your housing is 1/2 to 1/6 of what it would cost in California, even AFTER taxes. Just leave your liberal mindset in California when you come.

  21. What people are NOT seeing is min wage was always for intro jobs and everyone knew that, there was no problem with that fact in the past. (most companies pay over min anyways IF they need that employee) .. So why now? Why all of a sudden after years of knowing what min wage meant are we having this issue? That is the question that needs to be asked. What is my opinion, well for the last so many years our good jobs have been crushed, in this area alone 3 years ago they had to extend unemployment twice! That has never happened in history (which made the fund go more broke, think about it, if less people are working and so many on unemployment, then where is the money going to come from to extend this benefit duhhhh ). What happened is good jobs, went down the tubes, high paid companies laid people off. When they went out looking for another job all that was left was min wage jobs. There is where it happened.. I do not care what the unemployment rate is, the main fact is what type of jobs did these people get after losing a 18.00 an hour job and higher? This is why we have this issue, we have good experienced educated people that had to lower themselves to min wage paid jobs the last 4 years. That is why they say they can not raise a family on min wage.. Of course not, it was not made for people raising a family. The problem was our past administration destroying our good jobs in the first place and that is what needs to be regained.. NOT raising the min wage.

  22. Can somebody, ANYBODY, please take this jack ass off of our hands. California is dying and this idiot is the reason. Recently, during what is now the biggest fire ever in the history of California, Gov. Moonbeam blamed Donald Trump for the fires. Forgetting, of course, that Gov. Moonbeam has actually been the one in office when four out of 10 largest fires in California were during his tenure. You can’t make this up how stupid this man is. But he’ll show you every day, given the chance.

    1. Don, He’s a CREEP! He loves the freebies, booze, viagra, and is velcro’d to the ones who give him what he wants! In “exchange for”….He wants the grateful POOR and illegals for their votes, the rich for their money, which as usual, leaves the middle class OUT! NO Democrats support the middle class! because most vote Conservative! Hello? It’s sickening!

    2. I guess you need to address your fellow voters on this one. Time and again they keep electing miscreants like Brown. What’s wrong with their brains. Don’t they see how the liberals have f%^&ed up your state. Unreal.

  23. Good going, California. Not only will you lose thousands of jobs from the minimum wage increase, but businesses are leaving in droves, you want to secede from the Union, AND, if that’s not enough, you will lose BILLIONS in Federal funding because of your official status as a sanctuary state! My home state is falling apart. I can safely watch the demise from Arizona.

  24. Why only $15.00 an hour…??? Why Not $50.00..??? I’m mean if you aren’t going to let the businessmen run there business, just do what ever will cause people to vote for you, after all reality is no-longer needed right…? May as well let the kids play on the freeway while you idiots are at it…just saying!

  25. Pay the illegals anything you want. I don’t care. I have the right to avoid your business or your product.

    I agree that no one can live on minimum wage and in cases like that you have to work two or three jobs, but I also observe that quite often these people can afford nice cars and great clothes. Fifty years ago, when we were starting out, we didn’t have the option of another job so we pinched those pennies so hard the eagle was screaming, but we did it and they can do it today.

    I volunteer at a very nice church/charity resale shop that gets in some very nice items. I see people from all walks of life buying clothing there and with the price rotations, every week there are very nice 99¢ articles of clothing and shoes of all types.

    Somehow people have it in their head that they must start out with the same things everyone else had. We never expected anything other than what we earned. There was no one to help us and no charities that I knew of….maybe in large cities, but not where we lived. People survive.

    I grew up in California (left nearly 50 years ago) and they are more than welcome to do whatever they want, but they should not expect the taxpayers of their state to swallow this forced benevolence.

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