Gov. Gavin Newson (D-Calif.) withdrew a bill that would have required a $25 minimum wage for health care workers.
As The Wall Street Journal The editorial points out that Governor Newsom is doing this because the state is feeling the burden of this stupid law. California is already hurting private business with its stupid $20 minimum wage law, which is still in effect. But…
Newsom is backing away because the fascist state of California pays for much of the state’s health care costs.
The editorial committee The Wall Street Journal I have written:
The state’s budget deficit has ballooned to $45 billion. Newsom projects that the new health minimum will cost the state $4 billion a year through higher Medicaid costs and higher compensation for employees at state-owned facilities. Legislative analyses warned about these costs, but Newsom signed the law anyway.
…
Newsom has proposed tying the health care worker minimum wage increase to the state’s general fund revenues and exempting state facilities. But if capital gains revenues rise again, private health care providers in California would be forced to meet the wage mandate, ultimately passing the burden on to patients. Far better would be to eliminate the $25 minimum wage altogether.
Many working people in California are actually making less because of the state’s stupid minimum wage law.
“The average weekly wage of California leisure and hospitality workers fell 2.6% from last year due to a steep decline in hours worked.” Reports of The Wall Street Journal“By contrast, average weekly wages increased 3 percent nationwide, 3.2 percent in Florida and 5.2 percent in Texas.”
So a guaranteed minimum wage is not a good idea if Newsom’s precious state has to pay the fare. But Newsom leaves it alone if private businesses have to feel the burden. And it’s not even the private businesses that are footing the bill. You see, workers are getting cut hours and earning less. Another hidden cost of this foolish minimum wage hike is the higher prices that come with an artificially inflated wage hike. That cost gets passed on to consumers, resulting in even worse inflation.
Well, imagine the dire consequences if Democrats had their way and raised the national minimum wage to $20 an hour. They would do it regardless of the consequences the rest of us would face. Democrats don’t care about good governance anymore. Look around their cities. Democrats want chaos because that’s the only way they can hide the failure of their policies.
Here’s the bottom line… In the long run, these artificial wage hikes don’t help ordinary Americans. Eventually, there will be fewer jobs as businesses close, layoffs, and automation increases. Eventually, people will work fewer hours. Eventually, these artificial wages will push prices up to a level where wage hikes don’t make sense. What’s the point of wage hikes if you’re paying more for everything?
The free market is far from perfect, but it’s the best system humanity has ever devised. Capitalism has done more than anything else to eradicate poverty and spread prosperity. Socialism and communism have only spread poverty and mass death.
Look around you idiots… much of what we call poverty in America is very different from what the rest of the world calls poverty. American welfare recipients have iPhones, Netflix, central heating, air conditioning, an obesity problem, and access to healthcare.
It’s all thanks to the miracle of capitalism.
Governments can create artificial boundaries to claim that their people live in poverty, but by historical standards, their people are better off than the kings of old.
Government is not the solution to poverty; government is the creator of poverty.
John Nolte’s first and last novel Borrowed Timewinning 5-Star Rave Reviews Submissions from our everyday readers. You can read excerpts here here And a detailed review here. Also available in hard cover and Kindle and Audiobooks.
