California to Boycott Companies That Even Bid on Trump's Wall

Recently, two supervisors for the city of San Francisco introduced legislation that would bar any company from bidding on any city contracts if that company even entered a bid on Trump's wall.  This follows Berkeley which, as noted in the first reference below, "unanimously passed a resolution last week recommending the city divest from any company involved in any aspect of the project, and the Oakland City Council is set to vote on a measure Tuesday barring the city from entering into contracts with companies that work on the wall"  At the same time, the State Assembly has proposed divesting all state pension plans of every company involved with the building of the wall.

What's silly about this, is that Trump will build the wall. Further, it is California companies that may have worked on it and who are going to lose the most business under these legislative activities. Companies who would have probably hired Californians for the job. Companies who won't pay taxes on that lost business.  Further, those pension plans will suffer because a company awarded a contract to work on the wall should see a bump in its stock price. Further, California has the largest population of illegal immigrants at 27% of illegals in the country.  As a result, the taxpayers already have to cough up more than $30 billion a year to support them. This in a state that is now $1.3 trillion in debt and growing.

For sure, it is Democrats pushing this legislative action because Hispanics are an integral part of their voting base.  But, as I have said before, California should not impose its will on the rest of the country.  Illegals across the U.S. cost the taxpayers at least $113 billion a year.  In addition, crimes committed by illegals cost billions of dollars a year. Unless California wants to pay that tab, it should not be dictating its desire to block Trump's wall.

References:

2 SF supes seek to punish companies for bidding on border wall: http://www.sfchronicle.com/politics/article/2-SF-supes-seek-to-punish-companies-for-bidding-11015709.php

U.S.-Mexico border wall fight: California considers divesting from companies involved in the project: http://www.mercurynews.com/2017/03/20/u-s-mexico-border-wall-fight-california-considers-divesting-from-companies-involved-in-the-project/

Illegal Immigrants Cost California $30.29 Billion A Year: http://www.nationaleconomicseditorial.com/2017/02/21/costs-illegal-immigration-california/

California’s Total State and Local Debt Totals $1.3 Trillion: http://californiapolicycenter.org/californias-total-state-local-debt-totals-1-3-trillion/

The Fiscal Burden of Illegal Immigration on United States Taxpayers (2013): http://www.fairus.org/publications/the-fiscal-burden-of-illegal-immigration-on-united-states-taxpayers

California's "Real" Calexit Problem

Taking its cue from Britain voting to secede (Brexit) from the European Union, some in California want to do the same by seceding from the United States; or, "Calexit" as it is known.  In fact, in the latest polling, 32% want to exit. At the heart of the issue is that the rest of the United States doesn't share California's values.  Of course, the election of Trump reinforced that belief since Hillary Clinton received more than 10 million of the State's nearly 15 million votes cast.  In any event, California's Secretary of State has authorized the collection of nearly 600,000 signatures to put Calexit to the vote on the next ballot.

For all this talk about "values",  California seems to be ignoring the fact that there already is a kind of Calexit  taking place.  From 2004 to 2013, 5 million people left the State; mostly over high taxes (including property taxes) and high costs of living.  In another study, California lost 9,000 businesses in a 7-year span.  Most citing a "hostile business" environment of high taxes and regulation.

California also has some serious structural problems that may accelerate the number of those wanting to do business elsewhere.  The State has the highest poverty rate in the nation at 20.6%.  Contributing to the poverty problem is the fact that the unemployment rate is almost a full percentage point above the national average. Further, thanks to the voter initiative passed into law that essentially emptied the State's prisons of supposed low-level criminals, there has been an "explosion" of property crimes across the state.  In addition, cities like Los Angeles have seen an increase of violent crime after decades of decline.

Exacerbating the exodus is the fact that California's lawmakers just keep piling up regulations.  In 2016, 800 new laws went into effect which the LA Times said "touch on broad aspects of California residents’ everyday lives, or address major issues such as voter participation, and life and death."  And, for 2017, hundreds of new laws also went into effect including a $15 minimum wage by 2020 which is sure to accelerate the business exodus.  In addition, employers are banned from asking any prospective employee if they have an arrest record or court detention prior to being 18.

The bottom line is that Californians, themselves, are making it less hospitable for people to live and work in the state; and they just can't see it.

A final note: While many of the laws on the books are beneficial to some or all of California's residents, many are very burdensome to businesses and contribute to what many already are calling a "hostile" business environment.

References:

Supporters for 'Calexit' initiative start collecting signatures: http://www.foxla.com/news/local-news/232714964-story

California's ballots have all been counted — more than 14.6 million: http://www.latimes.com/politics/essential/la-pol-ca-essential-politics-updates-california-s-ballots-have-all-been-1481163154-htmlstory.html

An explosion of California property crimes — due to Prop. 47: http://www.sfchronicle.com/opinion/openforum/article/An-explosion-of-California-property-crimes-6922062.php

'Calexit' would be a disaster for progressive values: http://www.latimes.com/opinion/op-ed/la-oe-friedersdorf-calexit-unprogressive-20170129-story.html

5 Million People Left California Over the Past Decade. Many Went to Texas: http://dailysignal.com/2015/09/04/5-million-people-left-california-over-the-past-decade-many-went-to-texas/

California lost 9,000 business HQs and expansions, mostly to Texas, 7-year study says: http://www.bizjournals.com/dallas/blog/morning_call/2015/11/california-lost-9-000-business-hqs-and-expansions.html

Why Does California Have The Nation's Highest Poverty Rate? http://www.forbes.com/sites/chuckdevore/2016/09/28/why-does-california-have-the-nations-highest-poverty-rate/#79027b623e89

Violent crime in L.A. jumps for third straight year as police deal with gang, homeless issues: http://www.latimes.com/local/lanow/la-me-crime-stats-20161227-story.html

California Unemployment Rate: https://www.google.com/search?q=california+unemployment+rate&ie=utf-8&oe=utf-8

California's new laws for 2016: See how you are affected: http://www.latimes.com/politics/la-pol-ca-g-california-new-laws-2016-htmlstory.html

How will California's 2017 Laws Affect You: http://www.latimes.com/projects/la-pol-ca-new-2017-laws/#jobs


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Hillary Clinton: Raising the Minimum Wage Won't Kill Jobs

At a recent campaign rally, Hillary Clinton said this: “Don’t let anybody tell you that raising the minimum wage will kill jobs, they always say that.”

That comment is sheer stupidity. Forcing higher wages always puts jobs at risk.  It is why union jobs have declined from a peak of 35% of the workforce in 1954 to today's meager 9%.  The same is true for minimum wage jobs.

Millions of minimum wage jobs have already been lost to automation. Raising it will only hasten that trend.

One of the most plentiful minimum wage jobs before the introduction of the fast food restaurant was that of the gas station attendant at a full-service gas station.  Millions of these jobs have been eliminated by the broad application of automated self-service pumps. ATM's have replaced the need for millions of teller jobs.  Self-checkout lanes in grocery stores and stores like Home Depot are also killing  jobs.  Many hotels and motels have abandoned sit-down breakfast, lunch and dinner restaurants in favor of a complimentary self-serve breakfast that is easily handled by only one or two members of the normal housekeeping staff; thus eliminating minimum wage waitresses, busboys, and dishwashers.  

I guarantee, that if there is another 40% increase in the minimum wage to $10.25 an hour in the next year or so, there will be an eventual blood bath of these jobs being lost.

First, small businesses that are heavily labor intensive and already marginally profitable will have to shutter their doors because, to raise prices in order to cover the higher cost of labor, would make them non-competitive to other, more labor-efficient competitors.  Others will raise prices but, as a result, may see a loss of foot traffic because some of their customers will no longer be able to afford the new higher prices.  As a result, this could cause layoffs or, worst case, bankruptcy.  This would be especially true for businesses who are operating in blighted and economically depressed areas of our major metropolitan cities such as Detroit.  Areas that can ill afford any more job losses.

Secondly, automation will become more cost effective.  I could easily see robotic arms, hanging from  ceilings, in retrofitted fast food restaurants, that are able to cook and bag fries, cook and assemble sandwiches, or do whatever.  Kiosks could easily replace order takers and cashiers. All the while killing jobs.  The technology is already here.  After all, look at all the manufacturing jobs that have already succumbed to robotics.  And, artificial intelligence has advanced to the point where we already have self-driving and self-parking cars.  So, cooking and assembling a burger can't be that impossible for a machine to do. In fact it isn't impossible.  A company by the name of Momentum Machines will soon start introducing gourmet burger operations that are fully robotic.  Some hotels are already introducing robotic butlers that would replace traditional bell hops.  Then, too, there is already a robot, called the Vigilant MCP, that is able to replace your average low-paid security guard.

So, go ahead and believe Hillary.  But, don't say you weren't warned when the inevitable loss of jobs begins happening. To me, pushing a higher minimum wage will only hasten to push those kinds of jobs out of existence.

One last thing.  In that very same speech, Hillary made another remarkable claim: “Don’t let anybody tell you that it’s corporations and businesses that create jobs...”  Well, every month, when the government reports job gains, it's from the private sector.  Typically, 64% of those jobs are from small businesses with the rest from larger businesses and corporations.

She wants to be our next President?  Sometimes, even the idiot Joe Biden makes more sense.  At least he's honest about not being rich!

References:

“Don’t let anybody tell you that raising the minimum wage will kill jobs, they always say that.”: http://www.foxnews.com/politics/2014/10/26/hillary-clinton-corporations-and-businesses-dont-create-jobs/

Labor unions in the United States: http://en.wikipedia.org/wiki/Labor_unions_in_the_United_States

AI, Robotics, and the Future of Jobs: http://www.pewinternet.org/2014/08/06/future-of-jobs/

The ‘Fight for $15’ Suffers A Setback As McDonald’s Flirts With Automation: http://dailycaller.com/2014/10/25/the-fight-for-15-suffers-a-setback-as-mcdonalds-flirts-with-automation/

Here's The Burger-Flipping Robot That Could Put Fast-Food Workers Out Of A Job: http://www.businessinsider.com/momentum-machines-burger-robot-2014-8

Panera Bread Will Replace Cashiers With Robots By 2016: http://dailycaller.com/2014/05/14/panera-bread-will-replace-cashiers-with-robots-by-2016/

McDonald's orders 7,000 touchscreen kiosks to replace cashiers: http://www.neowin.net/news/mcdonalds-orders-7000-touchscreen-kiosks-to-replace-cashiers

Nextep Systems: Self Order Kiosks for Restaurants: http://nextepsystems.com/who-we-serve/restaurants/13?gclid=Cj0KEQjwt7KiBRD9lOePpe_BhrgBEiQAHaS_1yFKWq6AEfaYRemW_3C8rXA2vU2-R5MTDdcYbbpSRu4aAnf48P8HAQ

Robot Butlers: Automated Room Service at Aloft Hotels!: http://www.travelandtourworld.com/news/article/robot-butlers-automated-room-service-aloft-hotels/

Mass Produced Security Robots Introduced in U.S.: http://www.activistpost.com/2014/08/mass-produced-security-robots.html

Employment Report: Table A: http://www.bls.gov/news.release/empsit.a.htm

Small Business Administration: Job Creation: http://www.sba.gov/sites/default/files/FAQ_Sept_2012.pdf

Joe Biden: I'm not rich: http://www.delawareonline.com/story/firststatepolitics/2014/06/23/biden-not-rich/11265209/

On Raising The Minimum Wage, More Than 500 Economists Say No

In this blog I have published several entries explaining why raising the minimum wage would hurt businesses, the economy, youth employment, and not reduce poverty but, instead, deepen it.

Now, more than 500 economists from universities and colleges from all over the country -- of which three are Nobel Laureates -- have written an open "Statement to Federal Policy Makers" saying basically the same thing.  This excerpt essentially summarizes their concern:

"As economists, we understand the fragile nature of this recovery and the dire financial realities of the nearly 50 million Americans living in poverty. To alleviate these burdens for families and improve our local, regional, and national economies, we need a mix of solutions that encourage employment, business creation, and boost earnings rather than across-the-board mandates that raise the cost of labor."

 I would hope that "all" our representatives in Washington take heed of what these economists are saying.  To increase the minimum wage at the expense of so many millions and our economy -- just to garner votes -- is not just insane but a dereliction of duty. These warnings are quite clear.

The link to read the letter and see its signatories:  http://economistletter.com/

Story: More than 500 Economists Denounce Minimum Wage Hike in Letter to Washington: http://www.maciverinstitute.com/2014/03/more-than-500-economists-denounce-minimum-wage-hike-in-letter-to-washington/