The California Experiment Just Failed. Here’s Why

Added: 2026-05-04

[00:00:00]Guess what? California just raised the minimum wage again. $16.90 an hour and everybody's CHEERING. YAY, YAY, YAY, YAY, YAY.

[00:00:11]WELL, let me ask you something.

[00:00:13]What if that reaction is a part of the problem? People are getting laid off. I mean, there's no denying that.

[00:00:21]>> A study shows that the California $20 minimum wage for fast food workers was a big failure. Roll the clip.

[00:00:29]>> shows more people are applying for fast food jobs, but many are not seeing increased hours or even securing employment at all. It also finds businesses are cutting shifts, customers are paying higher prices, and more machines are replacing workers.

[00:00:43]>> See, here's the pattern nobody wants to talk about.

[00:00:46]Every time wages get forced up, companies start replacing workers.

[00:00:52]Kiosks, AI drive-thrus, automated everything.

[00:00:57]Then what happens? They point at the wage and say, "We can't afford employees anymore."

[00:01:04]And just like that, the worker disappears, and the company doesn't look like the villain.

[00:01:10]Now, look at the incentives.

[00:01:12]Labor gets more expensive.

[00:01:14]>> [music] >> Technology gets cheaper.

[00:01:17]>> [clears throat] >> So, what decision are businesses pushed toward?

[00:01:20]Meanwhile, tech companies win.

[00:01:23]Corporations cut payroll. Politicians get to say, "I fought for the worker."

[00:01:29]But the outcome? [music] Fewer hours, fewer positions, higher prices.

[00:01:35]We've already seen the early signs of this after the $20 an hour fast food wage push.

[00:01:42]Job cuts, reduced hours, price increases.

[00:01:47]That's not politics. That's pressure.

[00:01:50]Now, LA is talking about pushing wages even higher.

[00:01:53]$30 an hour for some sectors by 2028.

[00:01:58]Right before the Olympics. $30 an hour.

[00:02:03]That's the new minimum wage Los Angeles wants to give hotel and airport workers by 2028. And its supporters are saying it's long overdue that people who keep LA's massive tourism running can even afford to live in the city they serve.

[00:02:17]And one study even came out and said, "Hey, it will add over a billion dollars into the local economy." But what about the critics? What do they say? Higher hotel prices, fewer jobs, reduced hours, and a huge blow to small businesses already hanging on by a thread. So, ask yourself, does that create more jobs?

[00:02:38]Or accelerate who replaces them? This is not about what sounds good. No, it's about what actually happens because in Los Angeles, if you don't follow the incentives, you miss the outcome.