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Krispy Kreme and McDonalds
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Exactly, and don't forget the unions who will be liking their chops to reset their wage scales as well.
This will get u-g-l-y for certain income sectors, but the media will blame the consequences on anything but overpaid non-skilled labor costs. Other state vote-suckers will hold California up as a model for their nominal dollar wages, but forget to mention the ensuing reduction in purchasing power of those "new" wage dollars.
Edit: "U-g-l-y" is a banned word? 🙄
That's because there is not enough incentive for developers to build more or there is no more infill land inside CBD's to build it. Those guys don't run from a chance to move dirt and put up buildings if there are fees or profit to be had. The most highly regulated affordable housing markets (NYC, Chicago, San Fran, etc.) have the greatest shortages of it because the regulations take away incentive to build it, buy & sell it and maintain it, in the name of "tenant rights". Thomas Sowell has written some very insightful stuff based on his research on this topic.
I work in the Fannie and Freddie housing finance space, as well as Tax Abatement multifamily housing and I see the ramifications affecting efficiency in these markets.
the regulations are onerous but it’s not from tenant rights. It’s from homeowners that want restrictive zoning laws. we need to allow developers to build a ton of units
I just searched and the big mac cost between WA and TX is less than a dollar…..28 cents to be exact.
It's still comparing apples and oranges. CA does a lot of strange stuff. Did you see what happened to the average cost of meals, fast food and otherwise, during the pandemic. Restaurants added all kinds of nonsense, extra charge for using another plate or utensil, extra charge for cleaning, extra charge for worker safety (facemasks). Food bills now look like a CVS receipt.
The food has to get to their locations. Gas is more expensive here than anywhere else because we have to have a "special blend". It has made the inflation issue worse than in other states. We pay more for water and power. CA recently suggested we start paying power rates based on income. You know how that will hit fast food restaurants? I don't think any state pays more for grocery/food than Hawaii but right after that comes CA.
Automation reduces the workforce. Doesn't matter how productive you are if you don't have a job. And frankly, I don't buy that motivational theory. It is an absolute struggle out here for small business owners to even do business. The hoops you have to jump through, the licensing costs, the taxes, the regulations, are a massive burden. Fast food franchise owners are struggling upstream every time the state imposes some **** new fee or regulation.
And as will all forms of regressive policy, ie taxes, the cost just goes downhill to the consumer. I believe the consumer in CA for food/eating out will hit their limit.
taxes aren’t inherently regressive. An LVT is actually productive and incentivizes businesses to produce as much as possible. As far as pricing probably depends on the source used but neither here nor there as you pointed out it’s much more complex than minimum wage. Automation is always good as it frees up the labor force to perform more complex tasks instead of doing menial work. This is how our economy has become so advanced in the first place. I don’t disagree that California has some wonky laws especially that food labeling one but I think the impact on cost is also overstated. Source I found has Georgia at 11 and California at 19 for grocery bill
Average weekly grocery spending is highest in California ($297.72), Nevada ($294.76), Mississippi ($290.64) Washington ($287.67) and Florida ($287.27).
https://www.helpadvisor.com/community-health/cost-of-groceries-report#:~:text=1%20U.S.%20households%20spend%20an%20average%20of%20%24270.21,the%20least%20on%20groceries%2C%20on%20average.%20More%20items
I believe your source (Zippia) used only Los Angeles to represent CA, while using ATL to represent GA. That is not a solid data point comparison.
For instance, in California, the average weekly grocery spending is $297.72. Cities like Riverside and San Francisco are even higher at $300.50 and $298.44, respectively. Orange County grocery bills are 11% higher than the national average.
Menial work is needed in any modern society. It is what it is.
Mid 2022, CA had a budget surplus of $97.5B. 8 months later it had morphed into a $22.5 billion shortfall. The taxes they continue to put in place are erasing the middle class here. I want to leave….and yet with a net worth of at least $2M, which includes a lot of property owners, if you leave, CA will hit you with a .04% exit tax. You can't even leave the state without being punished.
Uh, no. You have never lived in California, have you? It's expensive because of state and local taxes.
There is a nationwide housing shortage, not just in California. The American population has increased by around 50 million in the last 20 years, but the housing market hasn't kept up. That's why housing prices continue to increase despite higher interest rates. My wife is one of the top Realtors in the Pensacola area and right now she can barely keep up with business. Last year was a little slow, but 2024 is blowing up. There are new neighborhoods being built all over the place and they sell as fast as they can build them. I imagine there is a lot less red-tape for builders in Florida than California. California just isn't business-friendly.
They won't have to demand
In my neighborhood, the trades are slammed busy. Not only are they getting 30 % more than this time a couple years ago, it's a 10 day to 3 week wait to get a job started.
Californians should eat more Big Macs and donuts so they can build more houses? Did we solve it?
yeah we have a tremendous housing shortage that’s built up over decades and will take decades of building to fix unless we switch to much higher unit density projects. Big cities in California and NYC are particularly bad about building housing. The South particularly Florida and Texas are just now starting to get increased housing costs due to an influx of high earners from high CoL states. They certainly build more but it’s a lot of SFH which leads to sprawl and a lot of inefficiency because they also have some bad regulations
That is the truth! Forget college….learn a trade.
Southerners typically don't want congestion. They don't want to live in inner-city population density. I hope we don't follow the European model of just building mega-apartments all over the place. One thing the U.S. has is space. Plenty of room for urban sprawl.
There's an opinion piece from the LA Times from March of 2023 that deals with the issue of housing shortages vs. Environmental regulations. I tried to post a link to the article, but couldn't figure out how to do it.
Environmental groups, existing homeowners too I suppose, were opposed to infill housing — new housing development in existing areas. But increased rents and mortgages have led to higher rates of homelessness.
And, developers were moving away from "intown" areas to fringe areas because of less restrictive regulations. Areas situated next to wilderness areas exacerbating climate change because workers would be making longer trips.
But housing advocates and environmentalists have started working together to support in-town development of multi-family housing. California is facing a shortage of 2.5 million units by 2030.
At least, that was the point of view from a year ago.
this is mostly correct. Environmental review laws are often used by existing property owners to block any new development. You most often see this to block new housing projects from homeowners but ironically oil and gas companies also use it to block solar and wind projects. It’s truly a bizarre regulatory system in desperate need of reform
that’s fine if people don’t want that but some do and developers should have the freedom to build for them
@pgjackson