useapen
2024-01-12 08:48:42 UTC
DENNIS WYATT
Published: Dec 28, 2023, 1:10 AM
The jig is up.
Thats jig as in paid hourly job as opposed to piecemeal work.
And you can thank the shortsightedness of the California Legislature.
Two Pizza Hut franchisee units are eliminating their delivery services.
Thats 2,041 jobs that now pay a guaranteed $15.50 an hour and would have
paid $16 an hour after the stroke of midnight on Jan. 1 when California
minimum wage increases again.
The reason the jobs are disappearing is because Gov. Gavin Newsom and the
legislature put in place a new wage law that will increase most California
fast food workers minimum wage to $20 an hour starting April 1, 2024.
You can still get Pizza Hut delivery.
But it will be via Door Dash, Uber Eats, and such.
Those contracting with such concerns arent paid by the hour
They do not have any benefits, even the minimum of workmans compensation.
They have to pay all of their Social Security taxes.
Besides income tax, they can be subject to a self-employment tax.
Yes, the laid off delivery workers could go to work for delivery concerns
that pick up business from Pizza Huts move.
But they likely wont end up making the equivalent of $16 an hour, let
alone $20 an hour.
There are app-based delivery drivers doing quite well, thank you.
It is, however, far from being universal.
Do not let the politicians that took credit for $20 an hour fast food
wages claim the elimination of jobs was an unintended consequence.
Its unadulterated horsepucky.
Youd be hard-pressed to find an economist whether they are
conservative, liberal, Republican, Democrat or got their degree from
Stanford or Sacramento State that did not indicate job loss would be
guaranteed collateral damage.
The real question has always been how bad will that collateral damage end
up being.
Do not misunderstand.
A market-based economy is always transformative.
Changing demands, wants, needs, and tech means all jobs are evolving to
some degree.
Blacksmiths are almost extinct as the demand for horseshoes is far from
what it was right before Henry Ford and the Model T did to horses as a
primary mode of transportation as Elon Musk hopes Tesla will do to the
internal combustion engine.
The bottom line of their governments direct manipulation of the
marketplace has always been four -fold:
*How many people will have to lose jobs so others benefit?
*Do those people have the skills available to secure replacement jobs?
*Will there be jobs available that dont require a major move?
*Will elevating one segment of the economy force wage increases in other
sectors to the point industries that are already under cost pressure may
be forced to rethink how they do things and eliminate jobs so they have
the ability to stay competitive in the labor market and not bleed
employees?
It is not rocket science.
And, to be honest, it is what some proponents of the $20 fast food minimum
wage hoped would happen with one giant assumption attached.
That assumption is the 25 percent jump in fast food pay will simply speed
up the natural progression of the economy and job market to create a
demand for more jobs that are often better paying than the jobs they
replace.
Thats fine in theory but history shows it doesnt always work that way.
The real crime here is the fact the push to artificially jack up wages via
state and local minimums at a significantly higher clip that has been done
in the past is being done because of the ineptness of the state and
federal government to create an economic environment that allows for
upward mobility.
Or, to borrow an argument from some that want the nations borders to be
sieve-like, that the rate of migration primarily that classified as
illegal has overwhelmed the economy.
It is a paradox of sort given America needs migrants.
Our economic strength for 247 years has been our ability to build this
nation on waves of immigrants.
A clue that we may, to a significant but not overwhelming degree, have
flooded the economic engine causing it to sputter and go dead-in-the-water
in some segments is the fast food industry.
Keep in mind the California Legislature was driven by the desire to help
people attain livable wages.
No one will debate that minimum wage fast food jobs meet the definition.
Many point out fast food jobs were never perceived as anything but starter
jobs or supplemental employment allowing a households aggregate income to
be livable.
You are seeing older workers in fast food places in Manteca, Turlock,
Tracy, and elsewhere.
That reflects, for the most part, that Social Security and what other
retirement older people have may not exactly be cutting the proverbial
mustard.
What you dont see as much in this areas you do in major urban areas and
generally throughout much of Southern California are people who are
basically struggling to support families on fast food wages.
It is clear the concept of upward mobility we all like to talk about isnt
working.
As a small example, diesel mechanic jobs for railroads that pay in the six
figures go begging at the same time politicians feel obligated to
essentially take the easy way and try to raise all boats artificially by
priming wage levels in targeted areas of the economy.
Jacking up the pay of fast food workers and not giving them the ability to
access tools necessary for them to work on moving up the economic ladder
is akin to throwing in the towel.
Worse yet, it forces businesses to make a decision: Is raising prices to
absorb a huge jolt in pay and payroll expenses a move that could end
up being detrimental to their business or are they better off reducing the
number of people they employ?
The real issue is politicians lack of fortitude and stomach to tackle the
main event upward mobility.
It could have a lot to do with the fact they will likely have to drop
preconceptions and work across the socio-economic spectrum to fashion
solutions that work instead of just kowtowing to their base, whether it is
political or ideological.
Meanwhile, enjoy your $10 Blizzard.
https://www.mantecabulletin.com/opinion/local-columns/californias-looming-
20-hour-minimum-for-fast-food-workers-already-eliminating-jobs/
Published: Dec 28, 2023, 1:10 AM
The jig is up.
Thats jig as in paid hourly job as opposed to piecemeal work.
And you can thank the shortsightedness of the California Legislature.
Two Pizza Hut franchisee units are eliminating their delivery services.
Thats 2,041 jobs that now pay a guaranteed $15.50 an hour and would have
paid $16 an hour after the stroke of midnight on Jan. 1 when California
minimum wage increases again.
The reason the jobs are disappearing is because Gov. Gavin Newsom and the
legislature put in place a new wage law that will increase most California
fast food workers minimum wage to $20 an hour starting April 1, 2024.
You can still get Pizza Hut delivery.
But it will be via Door Dash, Uber Eats, and such.
Those contracting with such concerns arent paid by the hour
They do not have any benefits, even the minimum of workmans compensation.
They have to pay all of their Social Security taxes.
Besides income tax, they can be subject to a self-employment tax.
Yes, the laid off delivery workers could go to work for delivery concerns
that pick up business from Pizza Huts move.
But they likely wont end up making the equivalent of $16 an hour, let
alone $20 an hour.
There are app-based delivery drivers doing quite well, thank you.
It is, however, far from being universal.
Do not let the politicians that took credit for $20 an hour fast food
wages claim the elimination of jobs was an unintended consequence.
Its unadulterated horsepucky.
Youd be hard-pressed to find an economist whether they are
conservative, liberal, Republican, Democrat or got their degree from
Stanford or Sacramento State that did not indicate job loss would be
guaranteed collateral damage.
The real question has always been how bad will that collateral damage end
up being.
Do not misunderstand.
A market-based economy is always transformative.
Changing demands, wants, needs, and tech means all jobs are evolving to
some degree.
Blacksmiths are almost extinct as the demand for horseshoes is far from
what it was right before Henry Ford and the Model T did to horses as a
primary mode of transportation as Elon Musk hopes Tesla will do to the
internal combustion engine.
The bottom line of their governments direct manipulation of the
marketplace has always been four -fold:
*How many people will have to lose jobs so others benefit?
*Do those people have the skills available to secure replacement jobs?
*Will there be jobs available that dont require a major move?
*Will elevating one segment of the economy force wage increases in other
sectors to the point industries that are already under cost pressure may
be forced to rethink how they do things and eliminate jobs so they have
the ability to stay competitive in the labor market and not bleed
employees?
It is not rocket science.
And, to be honest, it is what some proponents of the $20 fast food minimum
wage hoped would happen with one giant assumption attached.
That assumption is the 25 percent jump in fast food pay will simply speed
up the natural progression of the economy and job market to create a
demand for more jobs that are often better paying than the jobs they
replace.
Thats fine in theory but history shows it doesnt always work that way.
The real crime here is the fact the push to artificially jack up wages via
state and local minimums at a significantly higher clip that has been done
in the past is being done because of the ineptness of the state and
federal government to create an economic environment that allows for
upward mobility.
Or, to borrow an argument from some that want the nations borders to be
sieve-like, that the rate of migration primarily that classified as
illegal has overwhelmed the economy.
It is a paradox of sort given America needs migrants.
Our economic strength for 247 years has been our ability to build this
nation on waves of immigrants.
A clue that we may, to a significant but not overwhelming degree, have
flooded the economic engine causing it to sputter and go dead-in-the-water
in some segments is the fast food industry.
Keep in mind the California Legislature was driven by the desire to help
people attain livable wages.
No one will debate that minimum wage fast food jobs meet the definition.
Many point out fast food jobs were never perceived as anything but starter
jobs or supplemental employment allowing a households aggregate income to
be livable.
You are seeing older workers in fast food places in Manteca, Turlock,
Tracy, and elsewhere.
That reflects, for the most part, that Social Security and what other
retirement older people have may not exactly be cutting the proverbial
mustard.
What you dont see as much in this areas you do in major urban areas and
generally throughout much of Southern California are people who are
basically struggling to support families on fast food wages.
It is clear the concept of upward mobility we all like to talk about isnt
working.
As a small example, diesel mechanic jobs for railroads that pay in the six
figures go begging at the same time politicians feel obligated to
essentially take the easy way and try to raise all boats artificially by
priming wage levels in targeted areas of the economy.
Jacking up the pay of fast food workers and not giving them the ability to
access tools necessary for them to work on moving up the economic ladder
is akin to throwing in the towel.
Worse yet, it forces businesses to make a decision: Is raising prices to
absorb a huge jolt in pay and payroll expenses a move that could end
up being detrimental to their business or are they better off reducing the
number of people they employ?
The real issue is politicians lack of fortitude and stomach to tackle the
main event upward mobility.
It could have a lot to do with the fact they will likely have to drop
preconceptions and work across the socio-economic spectrum to fashion
solutions that work instead of just kowtowing to their base, whether it is
political or ideological.
Meanwhile, enjoy your $10 Blizzard.
https://www.mantecabulletin.com/opinion/local-columns/californias-looming-
20-hour-minimum-for-fast-food-workers-already-eliminating-jobs/