More than any other state in the nation, California’s economy is a mess from misusing the minimum wage for political ends, leading to skyrocketing costs that hurt small businesses and middle-class families. If Proposition 32 passes on November 5, a bad situation will become even worse.
Proposition 32 will contribute to:
- INFLATION
A higher minimum wage forces small businesses to raise prices on basic goods and services for California’s families that struggle to make ends meet during these difficult times.
- LOST JOBS
Rapid minimum wage increases result in layoffs and reduced hours while incentivizing employers to ramp up efforts to automate or outsource, diminishing job opportunities in the Golden State.
- ENDLESS BUDGET DEFICITS
Each time the minimum wage increases, it automatically raises salaries and pension guarantees for all government employees, requiring billions of additional tax dollars each year for local and state government budgets. - HIGHER TAXES
California currently faces a $68 billion budget deficit, according to the Legislative Analyst’s Office. Bigger budget deficits mean higher taxes if cuts in K-12 education, public safety, and health care are to be avoided.
Politicians in Sacramento created separate minimum wage rates for fast-food workers and hospital employees with more industry-specific carve-outs to come. Also, local governments can set their rates, just as long as they are higher than California’s rate. For example: The City of West Hollywood now boasts the highest minimum wage rate in the nation, resulting in a colossal 39% reduction in jobs.
Proposition 32 will make a bad situation worse. The minimum wage was always an entry-level wage for teens, young adults, and those seeking new job skills. Raising it has the immediate effect of hurting job opportunities and increasing the cost of living for all Californians.
Vote NO on Proposition 32 to stop inflation and protect small businesses.
