Showing posts with label minimum wage. Show all posts
Showing posts with label minimum wage. Show all posts

Tuesday, October 6, 2026

October, 2026, Political Class Insanity, Part 2: West Coast Political Stupidity From Oregon to Los Angeles To Seattle

 For  many, many years we have written about the ineptness, ignorance, and inability of the American political class to efficiently and effectively manage out tax dollars  and resolve the problems facing the  county. They never learn from  past mistakes and continue to  just make stupid decisions. Today’s political  class  insanity discussion just reinforces their historical incompetence.


1)Government intervention in the  medical care/health  care industry around the world and through  history has rarely ended  well:


  • Nationalized health care in England, Canada, and elsewhere has shown that health care quality deteriorates while the cost for government care management rises and rises when politicians get involved.

  • Obama Care promised to get every American on an affordable health insurance  plan  and “bend  the cost curve” of health  care while in  reality over 25 million Americans still don't have health insurance coverage and the Obama Car insurance policies failed to bend any curve.

  • The Federal government  has already tried to manage the  nation's health via Medicare and Medicaid, two programs  that are rocketing towards bankruptcy and as we have discussed extensively in our  government fraud posts, both programs are infested with fraud that steals billions and billions of  taxpayer wealth every year.

  • Vermont, one of the most liberal states in the country, tried to implement a  total state based government healthcare process over 12 years ago and had to give up before  even starting its implementation  since they could not find  any way to  fund it without going bankrupt.

  • Oregon voters voted against a universal  care strategy and plan at the  state level in 2002 with only about 20% voting in favor.


So history has shown that government controlled/politician-controlled healthcare management  has rarely, if ever, delivered better health care in an economical manner. And yet, that has not stopped the  politicians out in Oregon to  try and do what has never been successfully and efficiently accomplished before:


  • Oregon politicians want to take total control of healthcare over every Oregon resident by taking over Medicare and Medicaid control, Obama Care, and private insurance programs in the state.

  • The state politicians created the so-called Universal Health Plan Governance Board in 2023.

  • The purpose of  the  Board was to design  a publicly funded, government  controlled health  care system for  every resident, a “publicly funded health plan covering everyone who lives in Oregon.”

  • “Publicly funded” are code words for taxpayer funded.

  •  The original plan  was to develop the plan  and roll it out starting in 2028 and  complete the rollout by 2032.

  • However, the Board has delayed its final report  because those  serving on the  board cannot figure out how to pay for  the plan.


Such stupidity. Every resident in  Oregon likely has a unique health  care need. To think  that the state politicians can come up with a program that efficiently serves every resident and their unique  health  care needs is Soviet Union-like thinking, another example where government-control of health care failed  dramatically.


Dr. Delose Cosgrove is the former CEO of the Cleveland Clinic. I would bet that he has more health care and medical knowledge than every member of the Oregon state legislature combined. We previously discussed his belief  that smoking, diet, and lack of exercise contribute to  40% of premature deaths in this country, 70% of chronic diseases such as heart disease, and account for 75% of the nation's total health care.


He proved his point by implementing healthier food in the Clinic cafeteria and sponsoring  exercise and smoke cessation sessions. The  result was massive weight loss of Clinic employees and healthier employees and greatly reduced smoking levels. Politicians seem to always want to resolve public health  issues with economic solutions while the  best way to resolve public health issues is with public health solutions.


Advice to Oregon politicians via Einstein: the definition  of insanity is doing the same  thing over and over and  expecting different  results. Trying to implement government-controlled health  care is insanity, it has rarely if  ever  worked  before..


2)Speaking  of government incompetence, let’s head out to Los Angeles, a city that suffered through decimating wildfires a year ago:


  • A recent investigation  into the wildfires was recently  finished and released.

  • Findings  of  the report, over  700  pages  long, included the fact that fire-fighters were prematurely sent home despite the presence of high/dangerous winds, and evacuation  orders to residents did not go out until their homes were already on fire.

  • The  report  also concluded that the city fire department ignored warnings that a wildfire was still alive and smoldering and which  eventually reignited into a fury.

  • The report stated that firefighting efforts and communications were uncoordinated  and  disjointed.


Combine these findings with the reality that is already known  about firefighting infrastructure, ( e.g. dry hydrants, dry reservoirs, etc.)  and you see a massive failure of the local government  agencies and politicians, a failure that destroyed homes, businesses, lives, and trust.


A very basic duty of any government entity is to  protect the lives and property of the  citizens it serves. In the case of  the wildfires, Los Angeles politicians failed dramatically.


3)Obviously, American politicians do not know much  about affordable and available  healthcare or fire  fighting. But Seattle politicians show that politicians constantly show their economic ignorance:


  • We have recently and often discussed the reality that Seattle may actually be  the leading city candidate to go bankrupt first.

  • Violent crime, high taxes, high homelessness problem, and fleeing residents and businesses have  seriously  degraded the size of the city’s tax  base and revenue stream.

  • The fleeing tax base has created a severe crisis  in the city, with expected  city tax revenues facing a three year budget hole totaling hundreds of millions of dollars.

  • The  business  office vacancy rate is now the highest in the country with about 35% of the business space in the city now vacant.


Obviously, city politicians in Seattle have not managed the city economy efficiently  and effectively. And their recent decision is going to make  this  bad  situation  even worse:


  • According to reporting by the Western Journal, the city is raising the  minimum wage  to $22.14 on January 1st, up from the current level of $21.30.

  • That will give it one  of the highest minimum wage levels of any major  American city.

  • But this higher and higher rate  puts additional profitability strain especially on small businesses in the city, a  population  that has already been shrinking because of crime, a shrinking  customer  base, and already high taxes

  • These small business owners will likely reduce the number of  workers, reduce the number of hours of operation, take away other employee benefits, replace workers with  automation, and possibly leave the city altogether.

  • These options are not theoretical, we have  reported on similar economic insanity of raising the  minimum wage too quickly in  other cities and other states  with the  same  consequences.


An  old saying goes as  follows: “When stuck  in a hole, stop  digging.” Seattle  is stuck in a  financial crisis hole. Businesses are shutting down or moving their operations out of the  city for various reasons. Making it harder for a business to remain profitable and viable  should be the priority, not  increasing the major  expense item in its operation, labor. 


All  of which leads to another saying; ”The good news  is  that  your  wages just went up. The bad news is you no  longer have a  job.” Which is exactly what will happen if history is any guideline: businesses  will  tighten up their  labor  expense line to  compensate for the higher minimum wage, resulting in fewer jobs, fewer employee benefits,  fewer hours,  and  use of  automation to  replace human  labor. Or they will abandon the  city,  further reducing a shrinking tax base. In either case, residents, employees, and the Seattle city income statement  suffer.


Enough insanity for today: Seattle  continues to commit economic suicide, Los Angeles politicians failed dramatically in  fire  protection, and Oregon politicians  want to  go somewhere where no one has been successful before, government controlled healthcare.


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If you agree that we need to deseat every member of Congress for their lack of success and accomplishment, then please consider going to the following petition link to help the cause:


https://www.change.org/p/deseat-congress-reset-freedom



**********************


Our book, "Love My Country, Loathe My Government - Fifty First Steps To Restoring Our Freedom And Destroying The American Political Class" is now available at:`


Thursday, July 24, 2025

July, 2025, Political Class Insanity, Part 10: Mamdani Cannot Do Math, California Politicians Destroy 18,000 Jobs, More Covid Corruption and More

 There is a lot going on in the world: Obama and Russiagate findings, Middle East powder keg, the Russian/Ukrainian war, etc. But through all this, the American political class continues to  constantly deliver its own special brand of insanity, stupidity, wasteful taxpayer spending, and ineffective government programs:


1)We have  previously discussed the idiotic proposals and views of New York City mayoral candidate, Zohran Mamdani: free public transportation, free health  care, free child care, tax the rich and businesses to fund the freebies, abolish Second Amendment  rights, anti-Israel,  anti-Jewish, etc. 


One of his more inane ideas is to have the city government run grocery stores in the city in order to theoretically make food less expensive. This is stupid on various levels:


  • The city has no core competencies in running any business, never mind a business like grocery stores, that have low margins to be financially viable.

  • The  city government has  no buildings, no inventory management processes, no grocery management experience, no retail cash management experience or systems, no  employees, the list is almost endless.

  • And if they do succeed in getting up and running and slash prices, then privately owned grocery stores and  corner bodegas will shut down and leave since their profitability will go negative, causing so-called  food deserts to arise around the city.


Stupidity at its worst. But maybe not the worse, considering that Mamdani’s grocery store proposal is built on fictitious  data and reality that he apparently did not understand:


  • Apparently his idea for government grocery stores is based on his misunderstanding of current city government finances, another reason for him not to get into office.

  • He proposes to redirect city government tax revenue from what he thinks is currently going to "corporate supermarkets” and take that $140 million to  build out  city grocery stores.

  • $140 million would be a good start to creating a network of city run  grocery stores, no doubt.

  • Unfortunately that $140 million in city government funding does not exist, the $140 million is primarily non-government/private money that supports the current FRESH program, “Food Retail Expansion to Support Health  initiative.”

  • In  fact, only $1.3 million  of that $140 million, less than 1%, is city taxpayer funds, i.e. he does not have a  pot of $140 million to build out his city grocery stores.

  • Thus, his plan is already almost $139 million in the hole before getting started.

  • Plus, apparently the FRESH program has been very successful using private funding for the  most part to get more stores opened in the city, which has created jobs and better food access in all parts of the city, a  success that goes away if he allows the city to get into the grocery business.


So a stupid idea in theory becomes even more stupid because the guy did not  understand current food programs and what they cost the city, i.e. very little, while they deliver positive food results. Probably do  not want someone in charge who does not understand basic  math, basic government funding.


2)The COVID era keeps proving time and  time again how inept and  criminally infested most Federal government programs are. They waste taxpayer wealth and rarely deliver what they promise. Consider the latest COVID scandal that was recently uncovered:


  • More great work  from DOGE, the Department of Government Efficiency, it found that 5,500 COVID loans, totalling $312 million were made to people who were 11 years old or younger.

  • Yes, pre-teen  kids were granted Federal loans courtesy of the ineptness  of the Small Business  Administration.

  • Conversely, DOGE found that 3095 loans, worth $333 million, were made to people listed as being over 115 years old.

  • One $36,000 loan was made to a person who was listed as 157 years old.


Terrible incompetence and wasting of taxpayer wealth. Makes you wonder what other government programs are being ripped off as easily as this nonsense by the Small Business Administration.


3)But it is not just the Federal government that can lose and misspent millions and millions of dollars in just a single government agency:


  • The Los Angeles city government has lost track  of billions of dollars in spending for homelessness service programs in the city.

  • That was the bottom line finding of a recent audit by an independent entity.

  • The audit company said it could not completely quantify how the city spent approximately $2.3 billion because of incomplete and inaccurate bookkeeping and tracking.

  • Specifically: “Repetitive information gaps, coupled with a lack of accurate and complete data and documentation, posed significant obstacles to this assessment. Insufficient financial accountability led to an inability to trace substantial funds allocated to the City Programs. Fragmented data systems across LAHSA, the City, and the County and inconsistent reporting formats made it challenging to verify spending and the number of beds or units reported by the City and LAHSA, track participant outcomes, and align financial data with performance metrics.”

  • The report also pointed out specific problems such as failure to monitor homeless programs, ambiguity about what contractors were  supposed to be doing, inability to track contractors expenses, etc.

  • The auditor recommended that the city appoint an independent financial  manager to try and fix an  obviously broken  accounting and  accountability process.


According to the county health department, on average seven homeless individuals die every day in Los Angeles and the death rate among city homeless people is about 4.5 times higher than the overall death rate in L.A. County. Thus, this  is a critical, life and death issue, and the city politicians and government employees are running a slipshod, probably corrupt process, to help these folks and the results are not good, financially or realistically.


4)Not to brag, but  we previously wrote about the following topic and correctly predicted what would happen:


  • California recently rolled out a new minimum wage law that raised the minimum wage for fast food workers to $20 an hour.

  • At the time the law was proposed and moving towards enactment, we predicted that such a large jump in the salary expense for fast food outlets would reduce the number of hours available and the number of job slots available to fast food workers as fast food owners cut expenses to contend with the new minimum wage law.

  • In other words, “the good news is the starting minimum salary for your fast  food job is now $20 an hour, the bad  news is you no longer have a job.”

  • And according to an analysis released by the National  Bureau Of Economic Research, that is exactly what happened.

  • They estimate that the state saw an 18,000 reduction in fast food jobs as a result of the higher minimum wage.

  • Furthermore, the Employment Policies Institute estimated that fast food workers lost 250 hours worth of employment annually as a result of the  minimum wage increase.

  • Thus, fewer fast food jobs available and those that kept the job lost 250 hours of work  on average which means that despite the increase in pay, they lost $4,000 in  annual wages according to the study.

  • The California Globe wrote that "thousands of fast food jobs were shed by companies in anticipation for the  higher [labor/salary] costs.”

  • These lost jobs included 1,200 Pizza Hut drivers that were let go as a cost saving measure by the company.

  • The  Globe went on  to discuss the reality that owners cut hours, cut employees, automated processes that they could, or closed their establishments altogether because of the higher salary requirement.

  • Stanford University early on estimated that 10,000 fast food jobs had been  extinguished.

  • Just as an aside, California  continues to have  the highest unemployment rate in the nation at 5.4%, quite possibly because state politicians have no economic sense  at all.


And the damage is probably still not done. As businesses succeed with automation  of previously fast food human jobs, more and more employees may see their jobs  disappear.


Okay enough insanity for today: California  politicians are economically ignorant, L.A. politicians  cannot find the money they spend on  their massive homeless problem, the Small  Business Administration apparently will  give out anyone a loan  including 10 year olds and 157 year olds, and Mamdani screws up his numbers right out of the gate.


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If you agree that we need to deseat every member of Congress for their lack of success and accomplishment, then please consider going to the following petition link to help the cause:


https://www.change.org/p/deseat-congress-reset-freedom



**********************


Our book, "Love My Country, Loathe My Government - Fifty First Steps To Restoring Our Freedom And Destroying The American Political Class" is now available at:


Sunday, June 16, 2024

Part 1 - California Sinking

We have often argued the case that quite soon a major U.S. city or an entire state government will go bankrupt. The politicians running these entities have imposed heavy tax burdens on their citizens while allowing crime, homelessness, and other quality of life issues to become bigger and bigger problems. 

As a result, businesses and residents abandon these cities and states in order to be safer and to  keep more of their wealth away from greedy government bureaucracies. This out migration reduces the tax base, increases the taxes of those that remain, driving more people out of the state, and the financial death spiral is in place.

The top cities likely to go bankrupt, in our minds, are Los Angeles, San Francisco, New York City and Chicago. Top states with the chance to go bankrupt include California, Illinois, New York and New Jersey. All of these entities are facing massive budget shortfalls, crime, homelessness, and other problems and untold thousands of their citizens have been moving to other places, taking their tax dollars with them.

Depending on the latest and  lamest actions by their inept politicians, our views on which city and state will go bankrupt first changes month to month.  Last month we thought Chicago would go first given the heavy unfunded liabilities it is facing in the next too distant future. Before that we thought it might be New York City when even its mayor, Eric Adams, commented that the current situation in the city was unsustainable, given the burden of caring for almost 200,000 illegal immigrants.

But now, given the total incompetence of the political class in California, maybe that state and some of its dying cities deserve to be declared bankruptcy race leaders. While the state sinks further and further down the drain, the attitudes and actions of its politicians are inane and ineffective in providing good government and good quality of life for its citizens.

Example Number One -

  • California governor, Gavin Newsom, was recently bragging on how his state was the home to more Fortune 500 companies than any other state.

  • Specifically: "For the first time in 10 years, CA is officially home to the most Fortune 500 companies. More than Texas. More than Florida. 57 incredible and booming companies, right here in the Golden State." 

  • That might be good news but in reality in 2022  about 340,000 state residents moved out of the state.

  • Los Angeles, San  Francisco, San Diego and Santa Clara counties each  lost about 40,000 residents on their own.

  • The state’s current population is about 1.2% less than it was in 2019.

  • These latest out migration numbers follow in the reality that the state lost a seat on Congress back in 2020 as a result of its declining population while states like Texas and Florida actually gained a seat.

  • California currently has, by far, the largest homeless population in the country, more than twice as many homeless as New York.

  • Under Newsom’s tenure, the state government went from a $90 billion budget surplus a year  ago to at least a $30 billion shortfall this year.

  • High rates of homelessness, the highest gas and utility prices in the country, and even the worst road conditions in the country are just some of the reasons why people are leaving the state.

Given these realities, maybe bragging about having the most Fortune 500 companies in the country in his state is the only thing that Newsom can brag about.

Example Number 2 - 

As most people already know, most politicians have no concept of what sound and wise economic policy is. Be it in Washington or state houses across the country, government economic policies, driven by their politicians, usually make bad economic conditions worse or introduce new economic  problems.

Such is the case where California's politicians recently decided that fast food workers deserved a 25% pay increase and they raised the minimum wage for these folks from $16 an hour to $20 an hour, completely oblivious to the economic downside of this idiocy, as recently noted in the press:

  • Mod Pizza, a pizza chain in the state, recently announced it was closing five locations in california, in all likelihood because of the increase in their wage expense caused by the new $20 an hour minimum wage.

  • The New York Post reported that in just one of those closed locations 15 employees lost their jobs.

  • Employees were told that they got a two day notice of their terminations.

  • They are not the only casualties of the minimum wage hike since some McDonald's locations in the state are charging a ridiculous $18 for a Big Mac in order to cope with the higher minimum wage.

  • We have previously discussed the reality that thousands and thousands of fast food workers, like those that were once employed at Mod Pizza, have also lost their jobs since fast food locations are trying to cope with the higher labor costs in their business. 

Well duh, only the politicians did not see this happening: “The good news is that you got a raise, the bad news is that you no longer have a job.” And as prices for fast food go up, those that most frequently patronize these fast food locations, those at the lower end of the economic wage scale will eat out less often, causing further financial difficulty for the fast food locations owners and the economic death  spiral is in place: raised labor costs means higher meal prices which means less sales which means less revenue which means cut more staff, etc.

And thus, California politicians create, rather than resolve, another issue facing their resident.s

Example Number 3

A basic tenet of  government is that government should only exist to do jobs that benefit everyone and can do those jobs most efficiently. Those jobs include such things as a justice system, police, fire and EMT services, sound infrastructure such as roads and bridges, etc. Do these functions right and you have a useful, efficient government operation.

Well, apparently the politicians in Oakland do not have a handle on some of these basic functions. Crime is running rampant in the city: robberies have increased 38% in a year and car thefts have increased 44% in the past year. In fact, one out of every 30 Oakland residents have had their car stolen in the past year.

The high crime rate has driven many businesses out of the city including In-N-Out Burger and the last Denny’s restaurant. Other businesses have closed due to the high crime rate and the  danger to the businesses’ employees.

Also, many city roads are in need of repair. And this brings us to an interesting failed government issue in the city:

  • A street in Oakland is in horrible shape and needs to be replaced and replaced, a typical government function.

  • But this issue is  not going to be resolved anytime soon.

  • The crime in the area of the street that needs to be repaved is so bad that the repaving contractor decided it was too dangerous to send its repaving crew to the area to do the job.

Think about this reality: the street needing repaving was too dangerous for a crew to work on in the middle of the day because crime was too high as was the potential for danger. A very, very basic  tenet of any government entity is to protect the  lives of the people it governs. Obviously, the politicians in Oakland have failed miserably in this area.

Example Number 4

Consider some realities that exist today in the state of California:

  • They are facing a large budget deficit.

  • Crime rates are skyrocketing throughout the state’s cities.

  • Homelessness rates are also sky high.

  • The state’s infrastructure is falling apart.

  • The state is being overwhelmed with untold numbers of illegal immigrants that siphon off taxpayer wealth to pay for the illegal immigrants’ food, shelter and other needs.

  • Residents are taking themselves, their families, their businesses, and  their tax streams out of the state.

  • Gas prices and tax burdens are some of the highest in the country.

  • California public schools are some of the worst in the country.

Lots of problems to work on and a dwindling tax base to provide the support to pay for the solutions.

Consider some other, historical, realities:

  • California was not a participant in the Civil War.

  • No one in California owned slaves back in the day.

  • There were no cotton plantations in the state.

  • There are no surviving slaves from the Civil War living in the state today.

And yet, despite the major problems that face California citizens today, the fact that California had absolutely no part of the civil war and slavery, the state politicians have decided that it would be a good idea to pay reparations to slave relatives that live in the state:

  • The state government’s Senate Judiciary Committee has approved a bill that would create a state agency that would implement the state’s reparations task force recommendations.

  • That task force recommended that eligible black residents of the state, distant relatives of slaves that lived far away in other states, each get the ridiculous sum of $1.2 million.

  • Thus, untold thousands of people could get $1.2 million of taxpayer wealth while the state government has about a $30 billion budget deficit.

Big problems to resolve, but state politicians are focusing on giving away taxpayer wealth to people that were never slaves, people who never picked cotton. If the state government has that much  money lying around, would it not be a better idea to invest that money in inner city schools so that black kids could get a real education vs. what they get today? If it has that much money laying around, how about feeding the hungry or sheltering the homeless in the state? Insanity.

That will do it for today: quite possibly the most inept group of politicians in the country. They create new problems without resolving existing problems, they work on projects that make no sense relative to the major issues facing most of the state’s citizens while at the same time driving residents and businesses out of the state, losing the tax wealth that is leaving with them. Looks like California may have retaken the lead to become the first state government to go bankrupt.


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If you agree that we need to deseat every member of Congress for their lack of success and accomplishment, then please consider going to the following petition link to help the cause:


https://www.change.org/p/deseat-congress-reset-freedom



**********************


Our book, "Love My Country, Loathe My Government - Fifty First Steps To Restoring Our Freedom And Destroying The American Political Class" is now available at: