The Left is full of politicians who care nothing about this country or its citizens. And they seem to be doing everything they can to destroy this great nation.
And new liberal policies have forced thousands of Americans from their jobs and homes.
Since the implementation of California Governor Gavin Newsom’s $20 minimum wage law in April, the state’s restaurant industry has been hit hard, with nearly 10,000 jobs being slashed.
Struggling franchises have been forced to cut labor costs and raise prices to survive the costly wage increase, leading to mass layoffs and a significant decline in consumerism.
Tom Manzo, president and founder of the California Business and Industrial Alliance, spoke to Fox News, highlighting the disconnect between state lawmakers and the real-world consequences of their policies.
“California businesses have been under total attack and total assault for years,” Manzo said. “It’s just another law that puts businesses in further jeopardy.”
He revealed that since Governor Newsom signed AB 1287 into law, which took effect on April 1, nearly 10,000 restaurant industry workers have lost their jobs.
A number of well-known restaurants, such as McDonald’s, Burger King, and the iconic In-N-Out Burger, have been forced to raise prices to offset the increased labor costs.
These chains have also had to reduce employee hours and invest in automation technology to keep their operations afloat.
“You can only raise prices so much,” Manzo explained. “And you’re seeing it. People are not going to pay $20 for a Big Mac. It’s not going to happen.”
Manzo also criticized the notion that fast food jobs should be long-term, high-paying careers. “Fast food is a starter industry,” he said. “You get a job as a kid working in a fast food restaurant and you learn some good work ethic and that takes you into life.”
This perspective underscores the traditional view of fast food employment as an entry-level opportunity rather than a career path.
The first major casualty of the new wage regulation was Rubio’s California Grill, renowned for its fish tacos.
Just one month after the law took effect, 48 of its approximately 134 locations were closed due to the state’s “increasing cost of doing business.” On Wednesday, the chain filed for bankruptcy, marking a significant blow to the industry.
Similarly, Fosters Freeze, another fast food chain, closed its Fresno location, citing financial difficulties in meeting the new wage requirements.
These closures reflect a broader trend of financial strain and instability among California’s restaurant businesses.
The economic repercussions of the minimum wage hike are evident in the pricing strategies of major fast food chains.
According to a recent report from Kalinowski Equity Research, Taco Bell raised menu prices by 3 percent, while Starbucks added 50 cents to every menu item since the law took effect.
A Lending Tree survey revealed that 78 percent of consumers now view fast food as “luxury” purchases due to the steep price increases.
This shift in consumer perception has further compounded the industry’s challenges. As prices rise, fewer people are willing to spend on what was once considered an affordable meal option.
The result is a vicious cycle where higher costs lead to reduced demand, which in turn exacerbates financial difficulties for businesses already struggling to cope with the wage hike.
The law’s impact underscores the importance of considering the broader economic context and the potential unintended consequences of such policies.
Governor Newsom and state lawmakers are out of touch with the realities faced by business owners and workers alike.
The fallout from California’s $20 minimum wage law serves as a cautionary tale about the complexities of economic policymaking.
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