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Gavin Newsom: Critics said raising California’s minimum wage would destroy jobs. The opposite is true
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Gavin Newsom: Critics said raising California’s minimum wage would destroy jobs. The opposite is true

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About a year ago, I signed a minimum wage increase for fast-food workers. The law created new protections for these hard-working people and gave them more say in setting workplace standards.

That law, which took effect on April 1, raised the minimum wage for employees of fast-food chains with 60 or more stores to $20 an hour and created new health and safety standards.

Predictably, this modest bill caused conservatives and their supporters in the media to swoon. Even before I signed the bill, they were quick to say it would cause devastating job losses and lead to the closure of numerous businesses.

Gavin Newsom

California Governor Gavin Newsom greets people near the Common Man Roadside Market and Deli in Hooksett, New Hampshire, Monday, July 8, 2024. (AP Photo/Steven Senne)

It has been used as a scapegoat for companies filing for bankruptcy, laying off employees, and more. As the Los Angeles Times reported, the restaurant industry even released false numbers to make it appear as though thousands had been laid off because of the pay raise.

Newsom and Californian business group argue over conflicting employment figures after minimum wage increase

Now the data is in. It shows that the opposite is true: There are more jobs in the fast food industry in California today than ever before.

We believe in fairness, justice, and the idea that everyone deserves a chance to succeed. And these results refute the cynics who say we have to choose between protecting workers and economic growth.

In fact, the number of fast-food jobs has increased every month this year. Since the law went into effect, California has added 11,000 new jobs in the industry. In July, our state added 750,500 new fast-food jobs, a historic record year.

Customers are seen outside one of the country's largest fast food chains, McDonald's. (Getty Images)

Customers are seen outside one of the country’s largest fast food chains, McDonald’s. (Getty Images)

But the benefits of a higher minimum wage extend far beyond that number of jobs. A quarter of fast-food workers are the primary breadwinners for their families, and two-thirds of them are women. These workers face workplace retaliation, extreme heat, unsafe working conditions, wage theft, and more more than most.

Thanks to California’s compassion for working people, these men and women who live paycheck to paycheck now enjoy better working conditions, less financial stress, and greater opportunities for advancement. Families are able to make ends meet more easily, rely less on welfare, and contribute to a healthier, more prosperous state.

US STATES WANT TO RAISE MINIMUM WAGE TO $20 AS INFLATION PROBLEMS CONTINUE

In this industry, profits have soared while wages have stagnated. Last year, the top 10 fast-food chains experienced rapid growth, including McDonald’s, whose profits rose 63 percent. In addition, the top 10 fast-food companies spent $6.1 billion on stock buybacks last year – which primarily benefited Wall Street investors.

Compare these gains with the stories of real people who work to support themselves and their families.

Newsom in the ABC spinroom

California Governor Gavin Newsom speaks to reporters before the debate between former President Trump and Vice President Kamala Harris in Philadelphia on September 10, 2024. (Chip Somodevilla/Getty Images)

Julieta Garcia, a Pizza Hut worker in Los Angeles, said, “Before the raise, I had to choose every month whether I wanted to pay my rent or pay my bills on time.” Dionicia Cerbacio, who works at McDonald’s in San Jose, said she “hopes to save enough money and take my grandchildren to Disneyland for the first time.” Karina Ceballos, who works at Jack in the Box in Castro Valley, saw $400 more in her paycheck and said, “Maybe I can even save some money.”

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Our commitment to raising the minimum wage is a testament to California values. We believe in fairness, equality, and the idea that everyone deserves a chance to succeed. And these results refute the cynics who say we have to choose between protecting workers and economic growth.

The positive impacts we are seeing – job growth, improved working conditions, and increased economic stability – prove that this policy not only makes economic sense, but is also the right thing for California families.

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