Garcetti shows why minimum wage kills jobs

Garcetti shows why minimum wage kills jobs

minimum wage, taylor jones, cagle, May 8, 2014In backing a higher minimum wage for his city, Los Angeles Mayor Eric Garcetti inadvertently explained how it would kill jobs. From the Times:

“Garcetti pitched his plan to gradually boost the minimum wage across the city, critics argued that businesses might move to nearby cities to pay workers less.

“Now Garcetti is trying to persuade those neighboring cities to increase their minimum wages as well — and some are showing interest.”

But if those cities nearby to L.A. increase their minimum wage to L.A.’s level, then the businesses will just move further out, such as to Orange County — a place where no city except maybe Laguna Beach is likely to raise its minimum wage above the current state level of $9 per hour (rising to $10 in 2016).

But if that somehow did happen, then the businesses would move to other states — or other countries. Or they would find ways to automate their businesses. Or just go out of business.

Although people who keep their jobs obviously benefit from a higher minimum wage, many people will lose their jobs — and go on welfare paid for by taxpayers. So the minimum wage turns taxpayers with jobs into welfare recipients without jobs.

Californians should thank Mayor Garcetti for explaining that.


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  1. LetitCollapse
    LetitCollapse 18 September, 2014, 15:25

    There won’t be a loss of jobs. The businesses will just start paying more people under the table, like they’re already doing.

    Come on. Unless you live in a cave you must know that a large percentage of contractors hire illegals and pay them under the table. It’s almost impossible for an honest contractor to stay in business these days. How is it possible to stay financially solvent when your competitor can undercut your bids by paying his workers cash under the table? And as far as I can tell the laws aren’t being enforced. So a contractor has to either break the law or find a new line of business to stay solvent. So jobs won’t leave LA. They’ll just go off the books. The last estimate I saw stated that the underground economy in Los Angeles accounts for about 30% of the jobs!!! hah. And that estimate is a few years old. No doubt with the increased illegal immigration it’s even higher today. And enforcement is a JOKE!!! That’s because the politicians are protecting the illegals!!! 😉

    So the jobs in L.A. won’t go to neighboring cities. THEY’LL JUST GO OFF THE BOOKS!!! Watch.

    Reply this comment
  2. Queeg
    Queeg 18 September, 2014, 16:38

    I rail on globalists and how service workers are the 21st century slaves, but am not sold on giving politicians the power over private contracts between employers and employees. This is a slippery slope to bigger things……why not all CWD readers who work in cubicles getting $18.00 per hour.

    How bout all registered independents get a maximum of $30.00 per hour…..the manipulation/motivations are endless.

    When we lose the leadership/sacrifices/investment in human capital by employers we will have Facism-

    Reply this comment
  3. californianative
    californianative 18 September, 2014, 17:52

    I’ve got to agree with you on this one. Lot’s of folks I know in the Golden State pay cash for various services. No one hands out a 1099 or a w2 as far as I know.

    Reply this comment
  4. SoCalSteve
    SoCalSteve 18 September, 2014, 18:09

    The states that raised their minimum wages on January 1 have seen higher employment growth since then than the states that kept theirs at the same rate.

    The minimum wage went up in 13 states — Arizona, Connecticut, Colorado, Florida, Missouri, Montana, New Jersey, New York, Ohio, Oregon, Rhode Island, Vermont, and Washington — either thanks to automatic increases in line with inflation or new legislation. The average change in employment for those states over the first five months of the year as compared with the last five of 2013 is .99 percent, while the average for all remaining states is .68 percent.

    Digging deeper, all but one of those states are experiencing increases in employment, and nine of them have seen growth above the median rate.

    Reply this comment
  5. Queeg
    Queeg 18 September, 2014, 18:32

    There you have it….turn your health, education, labor alternatives over to a slimy politician……Why not just call him “King”…..

    No difference…your freedom gone…..

    What fools. Buy a union job… for politicians who steal from others to placate preferred interest groups.

    Reply this comment
  6. LetitCollapse
    LetitCollapse 18 September, 2014, 19:37

    “I’ve got to agree with you on this one. Lot’s of folks I know in the Golden State pay cash for various services. No one hands out a 1099 or a w2 as far as I know.”

    As long as you have cheap labor flooding across a porous unprotected border with virtually ZERO interior immigration enforcement – WHAT WOULD YOU EXPECT TO HAPPEN TO YOUR LABOR MARKETS??? 😀 Let’s start thinking like adults!!!

    Did anyone read the recent study using government stats about who has benefited from employment growth since year 2000?

    All of the employment growth went to LEGAL AND ILLEGAL IMMIGRANTS!!!!

    “Government data show that since 2000 all of the net gain in the number of working-age (16 to 65) people holding a job has gone to immigrants (legal and illegal). This is remarkable given that native-born Americans accounted for two-thirds of the growth in the total working-age population.”

    The conclusions were:

    1. There is no labor shortage of native born Americans justifying bringing in hoardes of immigrants to do jobs that Americans are perfectly willing to do.

    2. Immigration reduces work opportunities for native born Americans.

    3. The study completely blows away the lie that more immigration increases job opportunities for native born Americans.

    Read the darn study!!! Pull your head from the sand!!!

    This is the willful destruction of America as we’ve known it. The employment markets will continued to get gamed no matter if they raise the minimum wage to $100/hr. Employers will just pay workers cash under the table. It’s happening everywhere! And nothing is being done about it. The entire system is a joke!

    The underground economy is thriving in California!!! And the government is promoting it!!!

    Reply this comment
  7. Bill Gore
    Bill Gore 19 September, 2014, 21:21

    1) The immigration situation is weaponized demographic change, aimed at the middle class by the political elites that we, like utter fools, keep electing.
    The dumb-as-dirt football fools who watch 6 hours of television/internet porn per day…

    2) American business, going back over 100 years, has always hated paying anything for labor, has always sought the cheapest hands. Not like the germans, who value stability and professionalism in their work force. Hence, the rock-bottom labor here in the USA is SUBSIDIZED by an alphabet soup of government benefits. The wage race to the bottom is subsidized by the taxpayer. And lets face it: most american industry churns out shlocky crap that can’t compete anywhere, you get what you pay for.

    3) There really are people who work at minimum wage full time. A full time worker should NOT be eligible for welfare or subsidized anything! If this raises the cost of your pink slime and sawdust burger from $0.99 to $1.99 SO WHAT. Maybe you should eat healthier anyway….

    Reply this comment
    • LetitCollapse
      LetitCollapse 20 September, 2014, 10:21

      You make some good points, Bill.

      The study that I linked above blows holes in all the lies we’ve been told by the pro-amnesty crowd. All the job growth since Year 2000 went to illegal and legal immigrants while native born Americans accounted for 2/3rd’s of our population growth. That says EVERYTHING about how the American people are at war with the ruling class.

      The ruling class looks at Mexico, China, India, etc… and like what they see. Now they want a 2 class society in America. The elimination of the middle class. Just rich and poor. And all the economic statistics show that’s exactly the direction we’re moving in. The gap between the rich and the poor has grown exponentially in the last decade. This is the purpose behind the militarization of the local police departments. To control the masses when they finally figure out what’s going on.

      Reply this comment
      • Bill Gore
        Bill Gore 22 September, 2014, 09:15

        The hatred of the elites for the middle class has deep roots that may go back as far as the middle ages. Middle classes work hard and truly prosper through merit. Elites are a parasitic class whose sole skillset is murder and domination through force and subterfuge. Open any history book, the history of England is particularly revealing. Or just watch dvd’s of ‘The Tudors’….

        The real purpose of a policy that floods this country with unskilled immigrants is twofold: 1) the landscape in central america, rich in natural resources, is being relentlessly depopulated. The ‘good life’ for many rural peasants, as an unconcsious desire, is basically to be really fat and not lift a finger to get by. Look at the exploding rates of obesity and diabetes among latinos. Their demographic edge will fade fast as they become good little costco shoppers.

        2) The labor market up here in el norte has been gutted at the level of the trades, for reasons noted and discussed above.

        The real irony for me, having some familiarity with Mexico and her history, is that the period under the iron fists of the PRI and the Roman Catholic Church, was one of real stability, with a rock bottom safety net that was in many ways more compassionate than what we see up here. A right to housing. Free medical care. Free minimum rations of food for the needy……

        Reply this comment

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