California’s Fast-Food Crisis Deepens as Gavin Newsom Plans His Departure

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Employment Policies Institute, a conservative think tank that focuses on fiscal and economic policy surrounding employment and minimum wage in California, released a study on the impact of Governor Gavin Newsom’s $20/hour increase to the minimum wage. This was implemented by the governor in April. The minimum wage increase had already led to layoffs and restaurant closures before it was made law. It also resulted in higher prices, reduced service, and increased prices. This destruction is continuing apace, according to the EPI study.

California’s fast-food chains have been forced by Gov. Newsom to reduce employee hours, close or even consider moving completely out of the state. A new study shows that Gavin Newsom’s new minimum wage of $20 an hour is a good thing.

In less than a calendar year after the law was passed, 89 percent (of nearly 200 fast-food companies) have been forced to cut back on their employee’s scheduled hours.

Many have been forced to completely lay off their staff – something that many warned against when the progressive passed the law last fall.

Others complained that their concerns and those of their small franchisees would not be addressed – something that the survey indicates is already happening as officials continue to tout the law as a success.

In addition, the study found that those who remained employed had less access to extra hours and fewer opportunities for additional shifts. This reduced their take-home pay.

The law, in essence, has had the opposite effect of what it was intended to achieve. It is not unusual for California to be struggling with the consequences of the misguided Prop 47 which was engineered also by Newsom. The state is currently fighting to undo the damage done by rampant crimes, retail thefts, and property destruction. Newsom was fluffing up his progressive record while also appeasing the labor unions who contribute exorbitant amounts of money to his campaign slush fund and effectively run California.

The agreement brought to an end a long-running dispute between labor unions, the fast food industry, and Democratic Governors that began in 2022. Gavin Newsom has signed a bill creating the Fast Food Council, which is empowered to increase wages for fast food workers to up to $22 an hour. California’s minimum wage is $15.50 an hour for all industries.

The $20 per hour wage would be the starting point. The Fast Food Council would be composed of representatives from both the restaurant industry as well as labor. It would have the authority to raise the minimum wage every year by up 3.5%, or the change in U.S. Consumer Price Index for urban wage earners, and clerical employees, whichever was lower.

This law collapses in his face, just like homelessness. The question is: “Where is Gavin Newsom?” Does he care that under his leadership, this law has increased unemployment and further damaged the California economy? He has long been focused on Washington, D.C., but he is still looking at Washington, D.C.

Answer: It’s obvious. Newsom is too busy auditioning to be a possible cabinet member for President Kamalah Harris or plotting to shave her during the still-possible open Democrat National Convention. Newsom has also created a podcast to keep him hearing his voice since Californians are getting tired of it.

First, he needs to remove the brown from his nose.

Newsom, however, has built his entire career on progressive policies that he believed would propel him to the presidency. They are now sinking him into quicksand. We need to continue to expose, like VP Kamala Harris, his record and the weak foundation of his political home.

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