Communist California Facing the Consequences of Free Market Interference

The Communist government of California has interfered beyond its constitutional authority, commencing its destruction of the free market supply and demand of wages verses workers.

The California government legislative branch has created an intrusive role in determining minimum wages in this once free market and this interference is now going to destroy jobs.

Remember, that wages and hiring are determined by the combined interaction of businesses as buyers and workers as suppliers. Not the government !

Let’s take the two large Pizza Hut operators in California as an example.

In response to the “forced” new state law increasing the minimum wage to $20 an hour, Pizza Hut is terminating the employment of all their delivery drivers.

The total job losses will exceed 1,200 in-house delivery drivers in 5 California counties including Los Angeles. Plus 800 plus in other locations.

Looks like the Hollywood movie set workers will now have to leave the studios for their pizza fix if they can afford the gas at $9 a gallon. Approximately $6 of this is state and federal taxes. What we call “government theft” here in Florida.

The delivery driver employees will be terminated starting in February 2024. The new minimum wage law takes effect in April 2024.

Also the Communist government of California requires that capitalist job creating entrepreneurs to notify employees 60 calendar days before mass layoffs, even though the California legislative branch of government interfered in the free markets causing this impending mass lay off.

Reference California’s “The Worker Adjustment and Retraining Notification Act” (WARN) This sounds like a directive order written by a Communist sitting in a cubicle in Beijing.

Seriously, what retraining is required for a delivery driver job that is actually a perfect evening or weekend route for college kids and high school students ? It’s very not a job to raise a family.

California Assembly Bill 1228 forced the minimum wage increase to $20 an hour from $16 an hour and the free market response from capitalists was a massive lay off of employees.

Remember, the significant rising cost of living in California is directly proportional to the massive government intrusion on free market conditions.

Fast food restaurants will either close down operations in California or significantly increase the price of their products to pay the new minimum wage increase.

Then, the citizens will choose whether or not to pay $30 – $40 for a double cheeseburger and a bag of soggy fries.

California is ran by a Communist dictatorship and it is setting the example on how NOT to govern a state in a free market capitalist constitutional republic.

©2023. Geoff Ross. All rights reserved.

RELATED ARTICLE: California Pizza Hut operators laying off all delivery drivers

---