In a world of high unemployment and 94 million eligible workers out of the workforce, we have government going after the free market, attempting to “do good” for the people. Free stuff for a growing, dependent population is a way to many years of self-serving success in government offices.

As many of you are aware, California was the first state to implement the $15 minimum wage statewide. What an accomplishment, right?

Here is the problem with doing this in America: U6 unemployment is 10%, and that actually doesn’t count discouraged workers who haven’t found a job after a whole year of looking. According to economist John Williams, of, just using unemployment metrics that were implemented prior to 1994, real unemployment is north of 20%.

So simply put, it means two things: the economy sucks and the cost of labor is too high.

People don’t really see it that way, but if a good is priced too high, when you lower the price, chances are it will sell. If people aren’t getting hired to a VERY large extent, then it only makes sense to lower their cost, as opposed to making them more expensive.

So the solution from politicians to a struggling society and businesses that are barely making it is to drive up the cost of the most expensive component of most businesses – the labor.

But if you are a politician looking out for your self-interests over the next 10 years, wouldn’t you promise a bunch of stuff for votes? I was shocked that Jerry Brown actually admitted this, but after all, he’s got to do what he’s got to do.

Regarding the actual economic impact, California’s Governor Brown was quoted as saying that economically, minimum wages may not make sense.” I’m sure he regretted saying that, because it is a major backpedal on people who say a minimum wage will have a net benefit on the economy who are in his camp.

Redistribution of wealth and lack of incentives are driving people away from fiscally liberal areas to areas that are pro-business. According to a study done on IRS tax returns, over 250,000 California residents moved out of the state between 2013-2014, and the trend is continuing.

Nothing against immigrants — this is a nation of immigrants, and in fact, my family is from Argentina — but California isn’t seeing influx of immigrants that are largely contributing financially to the economy, but rather draining it with medical, educational, and infrastructure costs that are exponentially weighing on the economy. Then consider that people and businesses with money are being driven out because of high taxes and regulations, and it’s a recipe for a disaster.

It Gets Worse…

To add insult to liberal California injury, Los Angeles County is trying to institute a countywide income tax to pay for homelessness in the streets of LA, since it has increased 5.7% in just one year alone… Again, is it really that shocking as to why the state is crumbling? And politicians want to scare even more people away and perpetuate the situation with MORE TAXES. So in addition to the federal taxes, state taxes, and all other sales and excise taxes Californians already pay, they want to implement a county tax on millionaires to continue to fund projects that the bureaucrats never seem to have enough money for.

I feel so sad about the direction this state is going, and ultimately the country. Unfortunately, the direction California goes, the rest of the country tends to follow – maybe with some exceptions. All I can say is be vigilant and prudent with your finances, cash-flow, wealth, marketable skills, and within the rules, protect your money from the progressive agendas of Washington and the state.

And a clear, descriptive image for visual learners…

Raising the Minimum Wage for Dummies