The Consequences of California’s New Minimum Wage Law
The law that establishes California’s minimum wage rate at twenty dollars per hour is purportedly aimed at uplifting the state’s working poor. The role of economics is to evaluate such claims through economic theory and empirical evidence. In mainstream economics, commonly taught in introductory college courses, the conventional analysis indicates that such laws may lead to heightened unemployment only if the new minimum wage exceeds the market wage. While this insight is important, it does not tell the full story. This limitation stems from the assumptions inherent in the labor market model, which presume that firms and workers are homogeneous.
However, the real world does not conform to this assumption of homogeneity. Each market participant is different, and each, unlike a stick or a stone, makes numerous sink-or-swim decisions daily. In chapter 4 of his bookMan, Economy, and State, Murray Rothbard breaks down market participants into submarginal, marginal, and supramarginal categories.
Submarginal buyers exit a market when the prevailing price exceeds their willingness or ability to pay, while marginal and supramarginal buyers continue to participate. The latter two are willing and financially capable of paying prices surpassing the market rate. The crucial difference in them lies in the fact that supramarginal buyers are either more willing or more financially resilient to absorb price hikes compared to marginal buyers. An event like a government intervention or an economic shock that drives a price upward will cause marginal buyers to exit, thereby increasing the population of submarginal buyers.
Similarly, submarginal sellers have exited a market when the prevailing price is below their reservation price, while marginal and supramarginal sellers continue to participate. This is a result of the latter two having reservation prices below the market price. The crucial difference lies in the fact that supramarginal sellers have cost advantages due to their incumbency or economies of scale, which results in them having reservation prices that are lower than marginal sellers. Events like a government intervention or economic shocks that drive prices downward cause marginal sellers to exit, thereby increasing the population of submarginal sellers.
In labor markets, firms are buyers of workers’ services, workers are sellers of these services, and the price of the service exchanged is the hourly wage rate paid to workers. In California’s fast-food industry, supramarginal buyers are typically large, low-cost firms capable of substituting labor with automation and benefiting from ample access to low-cost credit. Marginal buyers of labor are often small, high-cost employers operating on tight margins. Submarginal buyers of labor include recently shuttered businesses or entrepreneurs on the cusp of opening their first location.
Supramarginal sellers in this industry are workers whose reservation wages are substantially less than the market wage. Marginal sellers are those whose reservation wage is just below the market wage. Submarginal sellers are those who are not participating in the labor market because the market wage is below their reservation wages. A marginal worker in this market could be young single parents who need a wage sufficient to provide for their families. A supramarginal worker could be individuals in the same situation but without kids, allowing them to accept positions at lower wage rates.
Disaggregating labor supply and demand and conducting thought experiments allow one to understand how California’s twenty dollar minimum wage, which exclusively applies to fast-food restaurants with more than sixty locations, negatively affects poor communities, has no impact on workers in high-income communities, and actually benefits the large, low-cost employers.
In well-to-do localities like Huntington Beach, California’s new minimum wage is roughly equal to the market wage paid to fast-food workers but exceeds that in poor localities like those in Oakland. When the market wage is at least the minimum wage rate, there is no effect on employment or the size of the labor force. However, when the opposite is true, people (submarginal employees) will enter the labor market seeking employment if the new minimum wage rate exceeds their reservation wage. At the same time, small high-cost firms with tight margins (marginal buyers) will exit this labor market if they have no other means to reduce production costs. With the former effect swelling the size of the labor force and the latter shrinking the employment level, unemployment rises in poor communities.
Unemployment in poor communities won’t be the sole consequence of California’s new minimum wage policy. To understand the potential outcomes in areas where prevailing wages significantly trail the twenty dollar minimum, consider this hypothetical: Picture entrepreneurs of color, whether native-born or immigrants, who have built restaurant chains spanning over sixty locations in poor communities, paying the prevailing rate of fourteen dollars per hour. Due to limited purchasing power in these neighborhoods, these eateries price their offerings just high enough to maintain typical economic returns, around 5 percent profit. However, with the introduction of the twenty dollar minimum wage, their labor expenses surge by approximately 43 percent. As hiking prices isn’t feasible in these circumstances, given the aforementioned constraints, restaurant owners are forced to explore cost-saving measures. Unfortunately, this may lead to compromised quality or increased reliance on automation.
However, the feasibility of automation is hampered by elevated interest rates, regional financial institutions facing challenges, and declining support from major banks for small enterprises. Consequently, in a bid to save costs, restaurants might trim staff or turn to processed ingredients over fresh ones. With the Affordable Care Act mandating health coverage for at least 95 percent of full-time employees in businesses with fifty or more full-time equivalents, they may also opt for cheaper part-time labor over higher-cost full-time workers. As these alternatives often result in lower food quality or service standards, residents might dine out less, preferring home-cooked meals over compromised experiences. If these cost-saving measures fall short, regional chains might close locations to shrink their size to below the sixty-location threshold, hampering their expansion into wealthier neighborhoods and hindering their pursuit of the American dream.
The unintended costs of this well-meaning legislation will be borne by residents of low-income California neighborhoods, including reduced job opportunities, unemployment, fewer dining choices, and stunted business growth in areas where these ventures originated. Meanwhile, life in wealthier neighborhoods will remain largely unaffected. Ultimately, the beneficiaries of California’s policy are established, low-cost, highly automated firms like McDonald’s, as the law limits potential competition in the future.
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CNN Analyst Hits Panic Button for Dems Following Massive Trump Bronx Rally: ‘Hispanic Voters Becoming Less Democratic’
A CNN data interpreter gave Democrats bad news following former President Donald Trump’s historic rally in the South Bronx on Thursday, noting Trump appears to be gaining momentum among minorities in the predominantly blue district.
Speaking to Kate Bolduan, CNN Senior Data Reporter Harry Enten explained how the rally represented a demographic shift among voters that should be worrisome for the Biden campaign.
“Look at the Crotona Park area, right? The Crotona Park precinct where that rally was held yesterday,” Enten told Bolduan. “It’s a majority Hispanic precinct, and I want you to take a look essentially at the election results over the last few cycles and what you would see there is essentially see, that look, this is a very Democratic precinct, right? But look at the margin trend line here.”
“You see Obama 94%, Obama 96%, Clinton 92%, Biden won it, but by only 69 points,” Enten continued. “Why is that important? Because look at that. That’s 23 percentage points less than Hillary Clinton won it by. This is a sign of the Hispanic movement that we saw last cycle, right, where we saw, although Hispanics still favored the Democratic candidate in Joe Biden, they were less likely to favor him than they did Hillary Clinton or Barack Obama both times. And it’s not just there that happened. We saw it in Hispanic precincts and counties across the country from southeast Florida, southern Texas, even in the Los Angeles area.”
Enten went on to explain how Biden’s lead over Trump among Hispanics in the Bronx area has dwindled to just 7 points.
“We saw a trend among Hispanic voters from 2016 to 2020, where they became less Democratic,” the data analyst said. “Look at the trend that we’re seeing right now in the polling, right? So, if you look back at Hispanic voters at this point in the 2020 cycle, Joe Biden had a 25 point lead. Look at where that lead is today. It’s just seven points. Donald Trump right now at 44%, if that held, would be the best performance for a Republican candidate among Hispanic voters since George W. Bush back in 2004.”
“And this is part of a larger trend line, Kate, that we’re seeing among nonwhite voters, we see among black voters as well – we’ve discussed that on this program before – whereby they’re much more favorable to Donald Trump than they were four years ago. And of course, Donald Trump did better amongst both of those groups in 2020 versus how he did in 2016.”
Enten went on to explain that if Biden wants to offset Trump’s support from the Hispanic community, he will need to court white liberal voters in the Great Lakes region.
“If you look nationally, Hispanics make up about 10% of likely voters,” he explained. “All right, so where do they make up a lower percentage of that? They make him up in the Great Lake battleground states … 3% in Michigan, 2% of Pennsylvania, 4% in Wisconsin. We have been harping over and over and over again that Joe Biden’s best path to reelection is to run through the Great Lakes and polling and results that we saw like in Crotona Park in 2020 and the polling that we see in 2024 just reinforce that.”
“He [Biden] is going to probably do best where white voters make up the vast majority of voters,” Enten described. “He still has a path to 270 at this point, even though he’s doing poorly, more poorly amongst Hispanics and black voters than he did four years ago because his numbers seem to be holding with white voters who make up the vast majority of voters in those Great Lake battleground states.”
Covering Trump’s rally on the ground Thursday, a CNN correspondent admitted the size of the audience was a bad indicator for Biden, saying, “It’s certainly a bigger crowd than I think Democrats would like to see, particularly given this is one of the bluest counties in the entire country!”
Even CNN is admitting President Trump’s rally in the Bronx was a massive success:
— Trump War Room (@TrumpWarRoom) May 24, 2024
“Certainly a bigger crowd than I think Democrats would like to see, particularly given this is one of the bluest counties in the entire country!” ? pic.twitter.com/XScfuQmnVa
As Biden grows more decrepit by the day, the legacy media is seeing the writing on the wall and panic is beginning to set in.
Don Lemon Doubles Down: ‘People Were Being Selfish’ By Not Masking & Getting Jabbed During Covid
Disgraced CNN anchor Don Lemon joined the “Fullsend Podcast” this week where he doubled down on his pro-Covid shot and masking stances he pushed on millions of Americans during the pandemic.
Asked about people like Chris Cuomo backtracking on the efficacy of the Covid jabs and medicines like ivermectin, Lemon said, “This whole argument about vaccines is a little weird to me because I think people are Monday morning quarterbacking.”
Don Lemon Continues to Defend Vaccine & Mask Mandates: ‘I Think People Were Being Selfish’
— Chief Nerd (@TheChiefNerd) May 24, 2024
“I think people were being selfish about that. If you don’t get the vaccine, then don’t get the vaccine but don’t expect to be able to do and go places where people who got the vaccine… pic.twitter.com/XxxnvpCB6b
Elaborating, Lemon defended the clot shot pushers by saying, “This was a once-in-a-lifetime pandemic and people didn’t know. I think we have to give the people who were in charge, including the Trump administration, a little grace because nobody knew how to deal with this.”
He continued to claim health officials and politicians “were doing what they thought was best to save the most amount of people.”
Of course, plenty of medical experts, alternative media outlets and some politicians were aware of the dangerous mRNA shots, the lack of protection provided by masks and the benefits of drugs like ivermectin during the pandemic.
We also now know the government colluded with social media companies to suppress information about those issued during the pandemic.
Next, Lemon suggested people who didn’t mask or didn’t get the experimental shots were being “selfish” despite the fact they’ve now been proven right.
“Instead of being selfish for themselves, they should have been doing what was best for our fellow man,” he said.
“I’m not gonna say, ‘Masks are stupid,’ because I’m not selfish,” he virtue signaled. “So, I think that people who were questioning the use of masks, even in the moment, were being a bit selfish.”
Meanwhile, there have been dozens of studies showing masks are not only ineffective at preventing the transmission of COVID-19, but that they can actually make the wearer sick.
Sounding like the ignorant shill that he is, Lemon told the podcast hosts, “So, I believe in medicine, I believe in science and I believe that my government is looking out for and trying to do the best for me.”
When one of the show’s hosts noted the media was demonizing people who chose to pass on the shots, Lemon claimed the media wasn’t shaming people.
Without a hint of self-awareness or irony, Lemon then shamed those who didn’t get the jabs, saying, “I don’t know if the media was shaming people, I think people were being selfish. If you don’t want to get the vaccine, don’t get the vaccine, but don’t expect to be able to do and go places…”
Another “Fullsend” host interjected, sarcastically adding, “and work, and make a living, right?”
Lemon responded, “Everyone was working from home. People weren’t at work. If someone in my office didn’t want to get the vaccine, then I would tell them to work from home.”
Both podcast hosts told Lemon they didn’t get the vaccine.
It’s worth noting Lemon’s employer during the pandemic, CNN, fired three employees for refusing to get jabbed.
Highlights: Trump’s Historic Bronx Rally Turned Into A Patriot Party!
Donald Trump held a massive rally in New York City’s The Bronx on Thursday in what will go down as a historic political event.
The 45th President ventured where few Republicans have gone and was met by a nearly 30,000 strong crowd of adoring fans and supporters.
Trump’s overall message was one of unity and peace, explaining he’s running to lead “all Americans.”
Donald Trump in The Bronx: “It doesn’t matter whether you’re black or brown or white or whatever the hell color you are, it doesn’t matter. We are all Americans.”
— ALX ?? (@alx) May 24, 2024
pic.twitter.com/dr4iINPL2Q
The presidential frontrunner also warned of the establishment agenda to flood America with illegal aliens “from all over the world” who may be hostile to the country.
“They are physically fit. They’re 19-25. Almost every one is a male and they look like fighting age. I think they’re building an army. 29,000 people over the last… I think they want to get us from within! I think they’re building an army… They have tents and gas-fired stoves. This is not like an illegal immigrant, they’re building something. We’re gonna end all that stuff,” he told the huge audience.
? Keep your powder dry patriots. Donald Trump is warning everyone…
— MJTruthUltra (@MJTruthUltra) May 23, 2024
They are Building an Army! They want to get us from Within!!
They’re Building Something!
• Millions of illegals
• They’re all young
• Most are males
• They are of fighting agehttps://t.co/Zid32ObrJU pic.twitter.com/J7VqZ5jCYs
See the enormous gathering for yourself:
?WOW – EVER WONDER WHAT OVER 30,000 PEOPLE AT A TRUMP RALLY LOOKS LIKE?
— Bo Loudon (@BoLoudon) May 23, 2024
OVER 111,000 PEOPLE ARE WATCHING RIGHTFUL PRESIDENT TRUMP’S BRONX RALLY ON RUMBLE ALONE, AS WELL!
Amazing footage from @DanScavino!
It sure would be a shame if this went viral and blew up in AOC’s face! pic.twitter.com/7SfbcZB7Pp
Patriots in the Bronx are ready for President Trump?
— Benny Johnson (@bennyjohnson) May 23, 2024
pic.twitter.com/wJVBqV92AU
I’m rocking in Da Bronx with thousands Trump supporters. pic.twitter.com/ryZCz1F453
— I Meme Therefore I Am ?? (@ImMeme0) May 23, 2024
There were some interesting moments captured on film before the speech, with a troll attempting to bait a Trump supporter into a racial conversation, which caused the MAGA guy to start chanting, “We want Trump,” with a group of young black men.
She called him a racist for being a Trump Supporter…. And this happened
— MJTruthUltra (@MJTruthUltra) May 23, 2024
????????
pic.twitter.com/UcBIOdoGX0
A music video shoot even broke out during the rally!
Da Bronx Is Rock With Trump!?? pic.twitter.com/TNkpzk6Bmk
— I Meme Therefore I Am ?? (@ImMeme0) May 23, 2024
Trump brought some locals onstage to speak to the crowd.
Ex-New York State Senator Reverend Ruben Diaz called New York Congresswoman Alexandria Ocasio-Cortez (D) a “false prophet” because she suggested God would make it rain during the rally and it turned out to be “a beautiful day.”
OUCH! Democrat & former NY state senator, Rev. Diaz calls out @AOC as a FALSE PROPHET after she predicted God would rain out Trump’s Bronx Rally & it
— Melissa Tate (@TheRightMelissa) May 24, 2024
Turned out to be beautiful day ??? pic.twitter.com/rcJDZNIiTu
Activist Madeline Brame unloaded on the illegal immigrant crisis wrecking U.S. cities.
“Get rid of AOC, vote her a$$ out!”
— Paul A. Szypula ?? (@Bubblebathgirl) May 23, 2024
Blexit activist Madeline Brame right now is crushing it in the Bronx ahead of Trump’s speech.pic.twitter.com/yNwxTyg71G
Perhaps the most hilarious moment came when Trump told a pair of local rappers he wants to get a gold grill on his teeth.
Trump wants to get a rapper grill ??? pic.twitter.com/hvIa8ZK95Q
— Old Row (@OldRowOfficial) May 24, 2024
Bronx kids were extremely excited to see one of the rappers, Sheff G.
BREAKING: New York kids cannot believe that popular rapper, Sheff G, has arrived to Trump’s rally in the Bronx. WATCH pic.twitter.com/pazTOQmIDF
— Simon Ateba (@simonateba) May 23, 2024
Media outlets and independent reporters talked with attendees about why they support Trump:
??DEVELOPING: What’s happening in the Bronx will be in history books I can’t believe it. Trump is HIM. THE FIRST MAN TO END THE BLACK DEMOCRAT PLANTATION I’M SPEECHLESS HE IS THE ONE! pic.twitter.com/wL7KrEuHNf
— Dom Lucre | Breaker of Narratives (@dom_lucre) May 23, 2024
One man claimed other presidents have come to The Bronx in the past, but that Trump is the first one who “came to the hood.”
“From what I know this is the first time a President has actually came to the hood”
— Savanah Hernandez (@sav_says_) May 24, 2024
A Bronx resident applauds Trump for coming to the Bronx stating that he knows previous Presidents have come, but they’ve never come to the “hood hood” like Trump has pic.twitter.com/MerbMm8epn
Another white supremacist from the Bronx is supporting President Trump. pic.twitter.com/nDxyGROM5E
— I Meme Therefore I Am ?? (@ImMeme0) May 24, 2024
Voters in the Bronx have a message for @AOC…
— Trump War Room (@TrumpWarRoom) May 24, 2024
“Everybody’s here for TRUMP!”
“I am a Democrat — and I belong here.”
“She has done NOTHING for the Bronx.” pic.twitter.com/EJUBADvKpz
Trump supporters are most amazing people. The Bronx was rocking today. pic.twitter.com/6fe8QU5PO9
— I Meme Therefore I Am ?? (@ImMeme0) May 24, 2024
Watching Democrats having meltdown over Trump Rally in the Bronx is glorious!! pic.twitter.com/Shcrwfscif
— I Meme Therefore I Am ?? (@ImMeme0) May 24, 2024
Even CNN had to admit the huge rally spells trouble for Democrats, with a reporter saying, “It’s certainly a bigger crowd than I think Democrats would like to see, particularly given this is one of the bluest counties in the entire country!”
Even CNN is admitting President Trump’s rally in the Bronx was a massive success:
— Trump War Room (@TrumpWarRoom) May 24, 2024
“Certainly a bigger crowd than I think Democrats would like to see, particularly given this is one of the bluest counties in the entire country!” ? pic.twitter.com/XScfuQmnVa
Mainstream media does not want the public to see Trump’s true popularity among citizens of every race, religion, class and any other demographic they use to divide the nation.
Trannys More Likely to Kill Themselves — Study
A study published last month indicates that people who had their reproductive organs surgically amputated have a 12.12-fold higher rate of killing themselves than those that did not undergo the procedure.
“Individuals who underwent gender-affirming surgery had a 12.12-fold higher suicide attempt risk than those who did not,” the study said in the ‘Results’ section.
Instead of recommending against neutering humans all-together, the researchers recommended even more medical intervention.
“…underlining the necessity for comprehensive post-procedure psychiatric support,” the study said in the ‘Conclusion’ section.
The researchers said that despite there being a growing acceptance for this type of amputee within society, they still have much higher rates of depression.
“With the growing acceptance of transgender individuals, the number of gender affirmation surgeries has increased. Transgender individuals face elevated depression rates, leading to an increase in suicide ideation and attempts. This study evaluates the risk of suicide or self-harm associated with gender affirmation procedures,” the study said in the ‘Introduction’ section.
After getting deeper into the transgender community by undergoing genital amputation, those above-average depression rates significantly increase.
“Gender-affirming surgery is significantly associated with elevated suicide attempt risks,” the study said in the ‘Conclusion’ section.
The researchers also documented how rare the disease is.
“The prevalence of transgender individuals in the United States is approximately 0.3% to 0.6% of the adult population based on self-reporting studies [1]. Investigations that only include individuals with transgender diagnostic codes, hormone therapy, or gender-affirming surgery report a much lower rate of approximately 0.008% of the population [2],” the study said in the ‘Introduction’ section.
The data shows an increase in everything from being sad to being dead after the genital removal.
Dr. Peter McCullough has also exposed the disturbing truth about this form of medical treatment for children, but said that adults can live out their dangerous fantasy at their own risk.
Dr. Peter McCullough Exposes the Disturbing Truth About Tr*nsgender Medicine
— Vigilant News (@VigilantNews) May 22, 2024
“Tr*nsgender medicine is bad medicine, and it causes harm.”
1.) “The hormones in the puberty blockers make the kids sick, cause acne, sleep disturbance, weight gain, nausea, [and] vomiting.”
2.) “The… pic.twitter.com/kZh7aq2JUl
Beyond Hellraiser: The Grisly Truth of Transgender Surgeries
Watch: Mexican Authorities Tow Dozens of US-Bound Migrants In Disabled Big Rig
Mexican authorities ‘rescued’ dozens of illegal migrants who were found inside a tractor-trailer abandoned on a highway this week.
On Wednesday, the National Migration Institute (INM) announced multiple ‘humanitarian’ operations that unfolded both on land and at sea.
A disabled big rig was discovered on a highway connecting Cosoleacaque and La Tinaja in the state of Veracruz.
Inside the soft-top trailer were 63 migrants, including 21 single adults from Bangladesh and India, along with adults, unaccompanied minors, and family units from Central American countries and Cuba.
INM published footage of the entire rig behind towed on the highway as the migrants continued riding in the trailer.
#Comunicado ? @INAMI_mx en coordinación interinstitucional auxilió a 88 #migrantes.
— INM (@INAMI_mx) May 23, 2024
?En Veracruz 63 personas ?????????? fueron localizadas dentro de un tractocamión.
?En Oaxaca fueron 25 ???????????? que rescató @SEMAR_mx de una embarcación abandonada.https://t.co/s4z5NNNkiJ pic.twitter.com/jwhCtMLSIF
The migrants were transferred to the custody of various government agencies according to their statuses.
Another intervention was carried out in waters near San Francisco del Mar in Oaxaca state.
The Mexican Navy extricated 25 migrants who were ‘abandoned’ in a small vessel under circumstances that are unclear.
“In the group, 19 single adults and two family groups from the following countries were located: Cuba (9); El Salvador (1); Nicaragua (1); Ecuador (4); Guatemala (1) and Jordan (3), as well as two family units of Cuban origin and made up of six members,” INM explained in a press release.
The migrants were taken to shelters while their immigration statuses were reviewed.
UN Announces Plan to Ban Most Farming, Triggering the Starvation of Billions