SW Riverside News

Californians are struggling with an affordability crisis. But Sacramento keeps making things worse.

Assembly Bill 1228 (Holden, 2023) went into effect earlier this week and will impose a 25% minimum wage hike for fast-food workers. Democrats in Sacramento pushed this policy, conducted negotiations behind closed doors, and Governor Newsom signed it into law.

"Many fast-food franchisees already have announced price increases and begun layoffs. Pizza Hut franchisees have announced plans to lay off around 1,200 workers. Chipotle, Jack-in-the-Box, and McDonald’s plan to raise prices. Some Starbucks have already increased certain drinks by as much as 50 cents." - Restaurant operators

The implementation of this bill will have serious consequences for both small business owners, employees, and consumers. Instead of enabling our small businesses to be successful and create jobs in California, this bill does just the opposite and furthers California’s inflation woes.

"Ultimately, Governor Newsom, Democrat lawmakers, and special interests are completely responsible for job losses in the fast-food industry and collapsing businesses in California." - Senate Republicans

The destructive law took effect on April 1. Ironically, the new law was implemented on the very same day the Orange County Register reported that California is No. 1 in the U.S. for unemployment. According to California’s nonpartisan legislative analyst, that’s over one million unemployed workers.

"Keep in mind that many franchisees are small, family-owned operations. They made it through the pandemic shutdowns, but they may not make it through this." - Senate Republicans

Restaurant operators and Senate Republicans have been sounding the alarm about the negative impacts of this policy for months. Besides the serious consequences for both small business owners and employees, the implementation of this bill will be detrimental to economic mobility for those who need it most. Instead of more money, for many, it means unemployment.

"Ultimately, they will also bear responsibility for the ripple effects of all their bad policies, which have intentionally raised the cost of living in this state to soul-crushing levels and pushed taxpayers and job creators to flee or avoid California." - Senate Republicans

Here in California, job creation is down, unemployment is up, prices continue to escalate for just about everything, and the State is grappling with an unthinkably massive deficit. Exacerbating all this is that taxpayers and employers are fleeing the state, citing high prices and burdensome taxes and regulations.

"California is in crisis. A decades-long string of misguided policy decisions by the super-majority has put this state on the wrong path." - Senate Republicans

"We need to support employers in California, not make it harder for them to do business and create jobs. We need to uphold the entrepreneurial spirit that not only has always been a hallmark of this state but also provides the backbone – and tax base – of our economy." - Senate Republicans

Only 15% of Californians can afford to buy a home, and if they can, finding affordable insurance is next to impossible as major insurers have stopped writing new policies in the state. Gasoline prices remain highest in the nation, and electricity rates are almost twice as high as the national average.

"Now we are adding fast food to this list." - Senate Republicans