$15 an hour minimum wage …… that will cost California 700,000 jobs:

California lawmakers could reduce employment by 700,000 jobs statewide over a plan to raise the minimum wage to $15 an hour, according to a labor policy expert published Tuesday.

California Democratic Gov. Jerry Brown arrived at a deal with lawmakers and unions Saturday to phase in a $15 minimum wage. The plan could void a union-backed measure that was already approved to appear on the November ballot. American Action Forum Labor Policy Director Ben Gitis said the plan could cost the state over half-a-million jobs.

“Proposals to raise the minimum wage often hurt those they intend to help by increasing joblessness among low-skilled workers and failing to deliver income gains to those who are actually in poverty,” Gitis said in a written piece. “This massive minimum wage increase could cost the state almost 700,000 jobs.”

The University of California, Berkeley, said the increase will not have an overly negative impact on employment or businesses. UC Labor Experts Ken Jacobs and Ian Perry found that while many across the state will rise out of poverty businesses will have little issue absorbing the added costs of labor.

“We estimate that 5.6 million workers would receive wage increases under this proposal,” Jacobs and Perry said in an analysis of the proposal. “Higher wages will be absorbed by employers through reduced worker turnover, improved productivity, and small price increases.”

The analysis estimates that the workers posed to get a wage increase represent 37 percent of the statewide workforce. Texas A&M University Professor Jonathan Meer and Massachusetts Institute of Technology Research Associate Jeremy West recently found that raising the minimum wage by 10 percent can result in a 0.3 to 0.5 percentage decrease in job growth. Gitis applied the data to estimated potential job loss in California, based on projected employment growth from the state.
Special: Americans Urged to Search Their Names Before Site Gets Taken Down

“This means that if the minimum wage were to be $15 in 2023, by 2026 employment would be 3.5 percent lower than it would be if the minimum wage did not increase,” Gitis said. “Using California Employment Development Department projections as a baseline, this translates to a loss of 692,235 jobs.”

Brown has been hesitant to embrace the $15 minimum wage out of concern it could harm the state economy. Lawmakers and unions said they addressed the economic concerns, including a longer phase in period, in the plan Brown eventually agreed to. The plan is to raise the minimum wage gradually to $15 an hour by 2022 before indexing it to inflation. Small businesses will have a year longer.

The proposal could put California on track to have the first statewide $15 minimum wage. The state currently has a $10.00 minimum wage. At the moment the $15 minimum wage has only been passed on the local level including a few cities in California. Oregon recently passed a measure designed to phase in a $13.50 minimum wage by 2022.

The American Action Forum is a center-right nonprofit group with a focus on policy research. Brown did not respond to a request for comment by The Daily Caller News Foundation.

This entry was posted in Misc. Bookmark the permalink.


  1. bogsidebunny says:

    The 2 parties involved in this fiasco are:

    1) The ignorant asshole illegal aliens & Knee-grows who really believe in the fairy tale that: “Free stuff comes from a universe sized cornucopia.
    2) The Communist inspired politicians who know $15 per hour will destroy the American businesses who they as Socialist, wannabe Commies loath with a passion and eventually the entire Capitalist based economy structure to be replaced by one gigantic government run co-op . Free enterprise to them is as the sickle cell is to blacks and A.I.D.S. to fruits. DEADLY!

    We’re DOOMED!

  2. dekare says:

    Stupid Stupid Stupid. Simple math. If you raise minimum wage to $15 an hour…well, then what about the long time or experienced workers who make $15 or slightly more? Well, then they will need a raise as well, as surely they will not be happy making the same as some unskilled newby who hasn’t put in the time or effort that he has. So, basically, everyone across the board gets a raise. Then, as surely as night follows day, prices will rise. Businesses do not pay anything…it’s all passed along to the end consumer. So, any restaurant, store, and every other business raises their prices so that everyone is accounted for in the new hierarchy of wages. Next thing you know, the people making $15 an hour will be in at best, the same as they were before, and most likely worse off. Ass streamlining, innovation, and robots, will become a priority and the no-skill repetitive jobs will be replaced. California will start to look like Japan where a loaf of bread cost like a million yen or something like that. They will make more, but that pay will only be a number, and have the same, or more likely, less buying power than before all this nonsense started. They do not realize what they are asking for as they are stupid idjits. That is why they are making minimum wage to begin with…stupid morons. And the politicians don’t really care, they see it as a way to buy votes and be heroes to the ignorant low-info voters. The long term effects be damned as they will be out of office by then.

    Used to be that minimum wage was for teens starting out or old timers looking to supplement. There are jobs that were NEVER meant to be a living wage. That was what was supposed to be a motivator. Learn, get experience, education, work your way up, and soon minimum wage would never be an issue, as the person worked above that. But now, with the economy in the shitter thanks to obama, people are not able to move up, or they are the type of idiots who never improve themselves. And to think, these complaining jerks want to invite hundreds of thousands of foreigners who will now become their competition for these limited jobs. What normal sane person who can think past tomorrow would think this is a good idea? Oh yea…obama voters….of course…my bad.

    I say give them what they want. As the old saying goes, be careful what you wish for…you just might get it. Only in kaliforni-uh. (But coming to a state near you soon.)

Comments are closed.