David J. Silva: Minimum wage increase could break the state

Re “New fronts in fight on state’s poverty” (Page 3B, March 30): Gov. Jerry Brown signed a bill that will raise the minimum wage to $15 per hour over the next six years. The effect will be that the cost of living will go up by at least 20 percent.

Those hurt most will be people on fixed incomes, pensions and Social Security. Their buying power will drop by the same amount. McClatchy columnist Dan Walters wrote that California – the richest state in the U.S. – has 9 million people living in poverty, the most in country. California’s problem is the liberal tax-and-spend Democrats. California has the second highest taxes; combined with the state’s anti-business attitude, more jobs are leaving than coming in. California’s unemployment rate is 6 percent, compared to the national average of 5 percent. The higher minimum wage only makes it worse as small businesses will lay off workers they can no longer afford at $15 an hour. They will also expect more in the way of education and training from those they hire.

The state will have more money for welfare and the Democrats will use taxpayer money to buy votes. As usual, the retired, elderly and small-business owners will be hurt. This raise in minimum wage has the potential to break the state.

Editor’s note: According to the Employment Development Department’s latest figures, there were 412,000 more jobs in California in February 2016 than in February 2015.

This story was originally published April 11, 2016 at 6:16 PM with the headline "David J. Silva: Minimum wage increase could break the state."