By Murray Edwards

As California’s Governor Gavin Newsom’s $20-dollar minimum wage for restaurants kicks in, the business community is reacting. Over 10,000 jobs have been cut, workers are being shifted to part-time and far worse, restaurants are shutting down and those that are financially able are making their plans to exit the state of California.

His train of thought is completely off base. Where everyone agrees that a fair wage is the ultimate goal, it should be market driven, not demanded by any government – State or Federal.

While politicians state the business community can handle the increase, there’ll be no additional cost to them. It’s obvious that they most have never owned or operated a private business.

They fail to realize that business owners will do what they have to in order to remain viable. They will raise the cost of the goods they provide; they will reduce   the hours worked by their employees and will move to automate anything that they can.

Unlike a government that needs revenue, they can’t simply the raise the tax burden on the citizens.

Unfortunately, many states across the country follow California’s way of thinking and will most assuredly join their movement.

This will ultimately lead to higher unemployment, more people working multiple jobs to make ends meet, and more business closings.

One other coincidence that will occur, as those who have crossed the border, many illegally, obtain work permits, more American workers will be replaced by individuals willing to work for any form of income offered.

One would have to ask, is this the plan?

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