Newsom’s California: Latest Evidence of a Death Spiral

The American Spectator | USA News and Politics

A new wave of regulations and wage mandates degrade a state that once epitomized the American dream.

. . ."Newsom noted that the state is home to 500,000 fast-food workers who seek better pay, but we’ll need to adjust that number downward a bit. After Christmas, Pizza Hut disclosed to the state’s Employment Development Department (you know, the same agency that paid out as much as $32 billion in fraudulent unemployment claims) that it was laying off all 1,200 of its stores’ delivery drivers.

"That looks like fewer fathers or mothers who can feed their children or put our state’s overpriced gas in their car. That $4-an-hour wage boost sounds good on paper, but not it if means fewer jobs. Who couldn’t see this one coming? As I wrote in the Orange County Register in November: “The unions are claiming a victory for workers, but it’s not hard to guess the result. Higher prices will mean fewer customers and reduced profits. That means fewer restaurants and fewer jobs.”

"Pizza Hut will let third-party delivery services, such as Grub Hub, handle deliveries, but this won’t be the last announcement of fast-food layoffs. In many cases, the jobs will simply dry up as individual franchises reduce shifts, curtail hiring, and shift to automatic kiosks as customers cut back on their restaurant outings. The law doesn’t target mom-and-pop restaurants, but they’ll face wage pressure as they compete for workers who can (theoretically) earn more at national chains.

"None of this will stop Newsom from touting his record of helping low-wage workers. “We’re making it known that the health and wellbeing of workers and their families is of the utmost importance for California’s future,” the governor noted in October when he signed Senate Bill 616, which expands the number of paid sick days (from three to five) that California’s private employers must pay. It also imposes new reporting and regulatory requirements.

"The California Chamber of Commerce is concerned that “far too many small employers simply cannot absorb this new cost, especially when viewed in context of all of California’s other leaves and paid benefits, and they will have to reduce jobs, cut wages, or raise consumer prices to deal with this mandate.” The group warns about the law’s impact on California’s “long-term competitiveness,” but few in the Capitol listen to mere employers." . . .