Preston Xanthopoulos: I'm definitely not California dreaming

California really doesn't make a lot of sense. I guess here in New Hampshire, one could argue, who cares what happens on the West Coast?  Well, unfortunately, trends from California tend to traverse their way across the country, and like the resurgence of bell bottom pants in fashion, the trends aren't always good.

California Governor Gavin Newsom signed into law a bill that will raise the minimum wage on many fast food workers to $20 per hour, starting April. I say "many" because it only applies to those who work for fast food chains with more than 60 locations nationwide, and no, it doesn’t matter if they are corporate owned or franchised. I have a lot of questions.

Let's start with, who does this benefit?

Multiple Pizza Hut franchises in California have announced that in response they will be laying off their drivers and switching to delivery apps like Door Dash, Uber Eats, etc. instead. That is more than 2,000 employees laid off. It’s not benefiting them. I guess Door Dash and the rest will benefit. But, as a $37 billion corporation, is that who Newsom and California lawmakers were trying to benefit here?  That's kind of weird. I suppose those 2,000 laid off Pizza Hut workers could go work for a delivery app instead, but, they aren't required to pay $20 per hour. Which begs the question of, why just fast food workers?

Well, there is also another new law for health care worker wage increases and while I'm generally a free market person, at least for health care workers it’s to bring more people into a field that has been shrinking and is vital.  But, what about everyone else and why just fast food workers?  The answer has something to do with unions, of course, but it still doesn't make sense. Is the California government saying employment at McDonald's is more important than working at a grocery store or farm or what about a teacher’s aid, which according to Zip Recruiter, averages $14.82 per hour in California as of December 2023.

Of the new law, one legislative advocate noted: “We did not just raise the minimum wage to $20 an hour for fast food workers. We helped a father or mother feed their children, we helped a student put gas in their car, and helped a grandparent get their grandchild a birthday gift.” Poetic, but false. You just lost thousands of people their jobs and while you were at it, you lost small businesses their employees.

As noted, this wage increase only applies to corporations with 60 or more locations nationally. That means Alicia’s Pizza Joint is now competing for employees with global corporations who can either take the financial hit a bit more safely, because they have more wiggle room, or, simply the ability to automate as we are all seeing at fast food locations everywhere. Do you see those order kiosks at your neighborhood sub shop? Of course not. It only makes economic sense for big companies that can program and manage en masse.

So, you haven’t benefitted workers, small businesses, or customers who will be paying higher prices at the drive thru, but you've given billion dollar corporations—be they fast food chains or delivery apps—a huge boon. Congratulations, California lawmakers, I'm sure your campaign coffers will be aplenty with the donations from the union you negotiated this with. Besides, it's not like the workers who lost their jobs or the little coffee shop owner is able to donate to political campaigns anyway. When Gavin Newsom ultimately decides to run for president at some point, let's keep this one in our back pocket.

Why does government all too often think it’s the solution? The reality is, the free market is the solution to things such as minimum wage. We saw it in the wake of COVID. Wages in fast food and other service industries skyrocketed because the market demanded it.  Here in New Hampshire we don’t have a minimum wager per se. Our law simply says we’re whatever the federal government has it at, and that is currently $7.25.  However, according to Zip Recruiter, the average hourly wage in the Granite State is $19.47 and we didn’t need a government mandate for that to happen.

But, we are now officially in an election year, which means candidates who want our attention from the Pacific to the Atlantic will start sharing some pretty wild ideas to pander to someone and get some headlines.  I just hope things like the industry-based-unneccesary-minimum wage goes the way of Shleggings, toe shoes and high heeled Croc's and stays in California.

Happy New Year! May 2024 be filled with joy, health and prosperity!

Alicia Preston Xanthopoulos is a former political consultant and member of the media. She’s a native of Hampton Beach where she lives with her family and two poodles. Write to her at PrestonPerspective@gmail.com.

This article originally appeared on Portsmouth Herald: Preston Xanthopoulos: I'm definitely not California dreaming