California’s Woke Wage Hike Resulted in 18,000 Job Losses in Just Two Years
Here we go again. The Golden State has long served as a laboratory for radical left-wing policies. From sanctuary city mandates to environmental regulations that drive businesses away. But California’s latest experiment in government-knows-best economics has delivered results so devastating that even liberal economists are struggling to spin the numbers. When politicians decide they can mandate prosperity through wage controls, the market teaches very expensive lessons.
In September 2023, California Governor Gavin Newsom signed AB 1228 into law. This wasn’t about helping workers—this was about buttering up progressive voters before election season. The legislation created a new “Fast Food Council” with broad power to set wages for restaurant workers. It mandated a $20 minimum wage for fast-food employees at chains with 60 or more locations. That’s a whopping 25% jump from the previous $16 rate. Supporters promised the law would lift workers out of poverty and demonstrate California’s commitment to economic justice.
The results? A complete disaster. According to a study published this month by the National Bureau of Economic Research, California’s wage mandate eliminated 18,000 jobs across the fast-food sector. That’s a staggering 3.2% decline compared to other states. While fast-food employment actually increased in the rest of the country, California saw jobs disappear faster than you can say “would you like fries with that?"
When it comes to central planning, history keeps the receipts: Wage controls never work. That’s because policymakers can set wage laws, but they can’t outlaw the consequences.
Here’s what makes California’s job losses even more striking. This wasn’t a sweeping minimum wage increase affecting all workers. It targeted only large chain restaurants. Yet even this narrow intervention produced massive job losses. Makes you wonder what would happen with broader “living wage” mandates, doesn’t it?
In September 2023, California Governor Gavin Newsom signed AB 1228 into law. This wasn’t about helping workers—this was about buttering up progressive voters before election season. The legislation created a new “Fast Food Council” with broad power to set wages for restaurant workers. It mandated a $20 minimum wage for fast-food employees at chains with 60 or more locations. That’s a whopping 25% jump from the previous $16 rate. Supporters promised the law would lift workers out of poverty and demonstrate California’s commitment to economic justice.
The results? A complete disaster. According to a study published this month by the National Bureau of Economic Research, California’s wage mandate eliminated 18,000 jobs across the fast-food sector. That’s a staggering 3.2% decline compared to other states. While fast-food employment actually increased in the rest of the country, California saw jobs disappear faster than you can say “would you like fries with that?"
When it comes to central planning, history keeps the receipts: Wage controls never work. That’s because policymakers can set wage laws, but they can’t outlaw the consequences.
Here’s what makes California’s job losses even more striking. This wasn’t a sweeping minimum wage increase affecting all workers. It targeted only large chain restaurants. Yet even this narrow intervention produced massive job losses. Makes you wonder what would happen with broader “living wage” mandates, doesn’t it?
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