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Dec 28 2023

Minimum Wage Madness and Elementary Economics

Here’s a suitable question to introduce 5th graders to economics. Authoritarians coercively jack up wages in the fast food industry; what happens to jobs? Those who can’t answer correctly are not ready for the 6th grade — much less to run the government:

In September, Gov. Gavin Newsom (D) signed into law a bill forcing national fast-food chains that operate in California to pay their employees a minimum of $20 per hour, effective April 1, 2024. That’s a significant increase from the state-mandated minimum wage of $16 per hour, which will take effect on Jan. 1, 2024.

To liberals, California is a model to emulate:

Labor groups and Democrats praised the law and claimed it will protect fast-food workers.

The predictable consequences are already unfolding. Pizza Hut is laying off over 1,200 delivery drivers.

Now, customers who want delivery from the impacted restaurants will be forced to use third-party apps — like DoorDash, GrubHub, and Uber Eats — to order their Pizza Hut delivery.

Until Big Government comes after them too. Before long, food delivery will be effectively illegal in California. If you want a pizza, you will have to drive to the store. If you want a job delivering pizza, you will have to escape to a state not run by moonbats.

There are two main effects of raising the minimum wage. It stokes the inflationary wage–price spiral Democrats have thrown into overdrive with grotesquely excessive wasteful spending. McDonald’s and Chipotle are responding to the law by raising prices. It also drives up unemployment. This is not a bug but a feature. Those reliant on government handouts to survive are less likely to vote Republican.

On a tip from Mr. Freemarket.


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One Response to “Minimum Wage Madness and Elementary Economics”

  1. […] minimum wage madness, moonbats recently provided an elementary lesson in economics. Now they teach us about public health by adding the morbidly obese to the Cultural Marxist […]


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