Prices are on the rise in California, but this time Joe Biden cannot be blamed. Instead, it is the result of a new minimum wage mandate for chain restaurants implemented by Democratic Governor Gavin Newsom and lawmakers in the state. The Wall Street Journal recently published research showing that meal prices in California restaurants have increased by up to 10 percent in just two months since the new wage took effect on April 1.
The minimum wage mandate has led to layoffs and price hikes as businesses struggle to adjust to the higher costs. The law only applies to fast-food restaurants, creating distortionary effects in the market. Small businesses with fewer than 60 national locations are exempt from the mandate, leading to an uneven playing field.
Interestingly, Governor Newsom’s own wine shop advertised a job opening for a busboy paying less than the new minimum wage, highlighting the elitist disconnect between politicians and the standards they impose on others. As prices continue to rise, families in California are finding it increasingly difficult to afford a night out, leading to a growing exodus from the state.
Chris Jacobs is the founder of Juniper Research Group and author of “The Case Against Single Payer.” You can follow him on Twitter @chrisjacobsHC.
