Nolte: Gavin Newsom Backs Off Stupid $25 Minimum Wage Healthcare Law

California Gov. Gavin Newsom prepares for an interview in the spin room following the FOX
Mario Tama/Getty

Gov. Gavin Newson (D-CA) is backing off a law he passed mandating a $25 minimum wage for healthcare workers.

As a Wall Street Journal editorial points out, Newsom is only doing this because the state feels the burden of this stupid law. California has already pummeled private businesses with stupid $20 minimum wage laws, which remain in place. But…

Since the fascist state of California picks up much of the state’s healthcare tab, Newsom is backpedaling:

The editorial board of the Wall Street Journal wrote:

The state’s budget deficit has ballooned to $45 billion. Mr. Newsom projects that the new healthcare minimum wage would cost the state $4 billion more a year owing to higher Medicaid costs and compensation for workers at state-owned facilities. Legislative analyses warned about these costs, but Mr. Newsom signed the law anyway.

Mr. Newsom is proposing to tie health worker minimum-wage increases to the state’s general fund revenue and to exempt state facilities. But once capital-gains revenue picks up again, California’s private healthcare providers will be stuck paying for the wage mandate, which they will ultimately pass on to patients. Far better to repeal the $25 wage minimum en toto.

Many working Californians are actually making less money under the state’s stupid minimum wage laws.

“Average weekly earnings for leisure and hospitality employees in California have declined by 2.6% over the last year owing to a steep drop in hours worked,” reports the Wall Street Journal. “By contrast, those average weekly earnings rose 3% nationwide, 3.2% in Florida and 5.2% in Texas.”

So, when Newsom’s precious state has to pay the freight, a guaranteed minimum wage is not a good idea. But when private industry has to feel the burden, Newsom leaves it in place. And it’s not even private business footing the bill. As you can see, workers are making less money by having their hours cut. Another hidden cost in this dumb minimum wage increase is the price increases that come with artificially enhanced wage increases. That cost is passed on to the consumer, and the result is even worse inflation.

Good heavens, imagine the catastrophic results if Democrats got their way and passed a national $20 per hour minimum wage—which they will do regardless of the consequences faced by the rest of us. Democrats no longer care about good governance. Look around at their cities. Democrats want chaos because chaos is the only way to hide their policy failures.

The bottom line is this… In the long run, these artificial wage boosts do nothing to help out everyday Americans. In the end, there are fewer jobs due to businesses being forced to close, job cuts, and increased automation. In the end, people work fewer hours. In the end, these artificial wages boost prices to a point where the wage increase is meaningless. If you’re paying more for everything, what good is the wage increase?

The free market is far from perfect, but it’s the best system mankind has come up with so far. Capitalism has done more to eradicate poverty and spread prosperity than anything else. Socialism and Communism have only ever spread poverty and mass death.

Look around, dummies… Much of what we call poverty in America looks very different from what much of the rest of the world calls poverty. People on welfare in the United States have iPhones, Netflix, central heat, air conditioners, obesity problems, and access to healthcare.

That’s all due to the miracle of capitalism.

The government can create an artificial line to claim people are living in poverty, but by any historical standard, they are living better than the kings of old.

Government isn’t the solution to poverty. Government is the creator of poverty.

John Nolte’s first and last novel, Borrowed Time, is winning five-star raves from everyday readers. You can read an excerpt here and an in-depth review here. Also available in hardcover and on Kindle and Audiobook


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