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Could Arizona Benefit from California's $15 Minimum Wage?

06 April 2016   Mark Roginson

An Opinion from a California Business Owner

The latest story on MSN titled “Deal Reached to Raise California’s Minimum Wage” is devastating and further proof we are raising not just a generation but a whole country of those who are entitled. You don’t need to work hard to better or separate yourself…here’s a raise. Congrats California, the Democratic Legislature and Governor have decided to give all you unskilled workers a nice raise. Why? I’m still trying to answer that myself but I’m pretty sure it has something to do with the fact that who could possibly afford to live on minimum wage? Duh.

I’m obviously disgusted but I’ll survive. Plan on us finding ways to fully leverage our overseas sourcing. Also count on us cutting our warehouse to the bone…we will use less labor for certain. That’s assuming we will have a warehouse here in California. I could see a scenario where we keep our offices and showrooms here in LA and move the warehouse to a more labor friendly state. We don’t manufacture anything anyway (cost effective manufacturing in the US was legislated out of existence some time ago) so it’s simple, non-technical work: pick, pack, pull, label, some re-work but no manufacturing meaning we don’t need skilled labor. Moving the warehouse would be a pain in the ass but isn’t all that difficult. That would put right around 80 people out of work.

But this is really going to hurt the small ma and pa types of business, restaurants and fast food. They’ll just go out of business. Fact of the matter is, with supply and demand the more expensive something is, the less you will use. This also applies with labor. I know this sounds obvious but our Legislature/Governor don’t seem to be aware of this well known economic principle! Am I missing something here? So when people lose their jobs or can’t get one because there are none, they go on welfare, food stamps, unemployment or other government assistance making it all exponentially worse. But that doesn’t matter to most of them does it? Entitlement is entitlement. Right? It certainly doesn’t seem to matter to our Legislature and Governor.

Minimum wage is supposed to be what it says it is…a minimum wage. Not a living wage. It’s supposed to be just enough to not starve. It’s supposed to provide incentive to those who want to and can do more by acquiring skills and habits, go to school, work hard, etc. The word “incentive” here is crucial. People do or don’t do things based on incentives. Always have and always will. The incentive to better yourself has been removed. Sounds like a really, really bad idea. But what do I know?

We are going down a rat hole and the “American Dream” is a joke. I just made up my mind…there is no way I’m not voting for Trump (meaning I am)…he’ll never let this happen on the federal level because it’s completely senseless. Something drastic needs to be done because going the way we are going, this country will be a piece of shit in a generation or two.

Just one man’s humble opinion but like I’ve already said, what do I know?