The state of California has made some terrible decisions that are hurting the economy.
Despite the numerous warnings, California increased the minimum wage to $15 dollars for every business.
Now, many companies can’t keep up and their business is ruined.
Many job positions will be closed in order for the companies to save their budgets. Recently, the study “California Dreamin’ of Higher Wages” was conducted and showed that California will lose around 400,000 job positions by 2022.
Many companies, especially the smaller ones, can’t keep up so they have to close some job positions and stop hiring employees. This will hurt the economy and the jobs of hundreds of thousands people.
It is estimated that the lower class citizens will suffer the most. There is a chance that they lose their job immediately.
The study states: “The… preferred model show that past minimum wage increases in California have caused a measurable decrease in employment among affected employees.”
“By 2022, approximately 400,000 jobs would be lost as a consequence (of minimum wage increases). (This estimate is conservative, as it measures the impact of California’s state minimum wage but does not account for job loss in counties that had insufficient data,)” the study reads.
The conservatives are against decisions like this for a long time. However, states like California didn’t pay too much attention, so now, they will suffer from the damaged economy.
The study continued: “Industries with the greatest number of affected employees are most severely affected by job loss, according to Even and Macpherson; nearly half of the observed job loss occurs in foodservice and retail industries.”
Yes, the study is for the far future, but the estimation will be correct if the things continue to follow the same path.
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