Democrat Minimum Wage Hike Driving California Restaurants Out Of Business
If there is one thing that Democrats know how to do, one thing that they are truly adept at, it is ruining businesses profitability and the ability to stay in business.
They rail against the Amazons and the Walmarts of the world and their sheep go along with them, but where the effects are truly felt are in small businesses.
Between excessive regulations, high taxes and the raising of the minimum wage, Democrats stand head and shoulders above everyone is damaging business.
Many California restaurants have learned just that since the state enacted its new $15 an hour minimum wage laws, causing many of them to go out of business.
The minimum wage law was signed by former Gov. Jerry Brown in 2016 and raised the wage 50 cents per year for employers with 25 or more employees 2017, from $10.00 to $10.50.
In 2018 all employers had to meet the $10.50 standard and the larger employees moved to $11.00 per hour.
But after 2019 the wage increase by $1.00 per hour per year with the goal of getting to $15.00 per hour by 2022 for larger employers and 2023 for smaller businesses, Forbes reported.
It is a good idea in theory for liberals because they want more money to go into the pockets of hard-working Americans. It is noble in fact. But businesses do not have unlimited resources.
Many workers are learning in Sacramento, rather than earning that higher new wage they will be looking for jobs, KOVR reported.
“With California’s minimum wage set to increase on January 1, restaurants facing high rent and staffing costs said it’s a price they can’t afford, which is forcing some to close their doors,” it said.
“It’s bittersweet. It’s been 14 years. It’s been a good run,” Phil Courey, the owner of Greek restaurant Opa! Opa! Said.
“The wages are definitely a heavy pressure on us,” the restaurateur said. “About 40 grand a year every time they jack up the minimum wage.”
Perry’s restaurant is South Sacramento has already closed, as it served its final customers on Sunday.
“It’s really sad just thinking about this,” customer Patricia Smith said. “It’s an institution. This is a Sacramento institution.”
“California is a rough state to do small business,” the owner, Paul Fraga said. “They want everybody to make $20 an hour, but for the smaller guy, I can’t afford that.”
And it is not just these two restaurants that are closing their doors. Several others have closed and Courey predicts that more will close.
“We close our doors one-by-one, Perry’s after 50 years, today Fat City and others…you’ll see a few more closing just after the first of the year,” he predicted.
And those who do not close will likely pass the increases on to their customers. These are the consequences of good intentions that do not take into account real world finances.
Democrats rally against big businesses, but the truth is that with their policies big businesses are the only ones able to survive.
