Nevada gas prices aren’t the only thing California Gov. Gavin Newsom wants to raise.
Mr. Newsom recently put out a release touting California’s economic growth. He says the state is adding jobs at a strong pace, and its GDP is growing. It’s quite easy to imagine Mr. Newsom spouting off statistics like these as he campaigns for president.
It’s absolutely true that California has a large and important economy. That didn’t start with Mr. Newsom. He also can’t claim credit for the AI revolution that is boosting companies in Silicon Valley. He isn’t responsible for the massive data center buildout that is juicing the economy. California’s economy would be even stronger, however, if numerous high-profile companies, including Tesla, Chevron and Oracle, hadn’t left the state.
Americans have long flocked to California, at least until Mr. Newsom took office. Despite the tens of billions of dollars California has spent trying to control the climate, Mr. Newsom has yet to ruin California’s incredible weather. But his policies have contributed to California’s unaffordable housing prices. The average price of a California home is more than $770,000 according to Zillow.
But Mr. Newsom cites California’s high minimum wage as proof that some Californians aren’t being left behind.
“As California creates jobs and increases productivity, the state is also working to ensure workers share in that growth,” a release from his office states. In contrast to the federal minimum wage which hasn’t increased since 2009, California’s “statewide minimum wage will increase to $17.40 per hour on January 1, 2027 — nearly two-and-a-half times the federal minimum wage.”
In some industries, it’s even higher. For instance, fast-food workers must receive at least $20 an hour. This hasn’t produced a boom in fast-food worker hiring. Just the opposite.
“The Employment Policies Institute reports that California’s restaurant employment has declined for three consecutive years between March 2023 and March 2026 — a total of 12,600 job losses in food services and drinking places — according to the Labor Department’s most recent payroll data, while employment in the industry increased nationwide by some 151,700,” The Wall Street Journal wrote recently.
Unsurprisingly, California teenagers are having a hard time finding a job. Teenage unemployment is now 22.1 percent, compared to 11.3 percent in January 2023. Around the country, the teenage unemployment rate was 12.1 percent in July, compared to 10.6 percent in January 2023.
Some Democrats want to spread these results across the country. Sen. Chris Murphy, D-Conn., has proposed a $25 federal minimum wage.
It shouldn’t take AI to help politicians understand how ever-higher minimum wage mandates reduce minimum-wage employment opportunities.
