As of July 31, California is increasing the minimum wage statewide to $17.40, according to the office of Governor Gavin Newsom.
“For years, Donald Trump and Republicans have blocked efforts to raise the federal minimum wage while handing tax breaks to billionaires and big corporations. California has chosen a different path – one that requires hard work, grows the economy, and puts working families first. We believe if you work hard, you deserve a decent paycheck. They think $7.25 an hour is enough. We don’t,” said Governor Gavin Newsom.
The increase will go into effect on Jan. 1, 2027, and is almost two-and-a-half times the federal minimum wage. The federal minimum wage, $7.25, has remained frozen by current President Donald Trump and Republicans. It has also been $7.25 since 2009 and has not seen an increase in 17 years, which is the longest the U.S. has remained without a boost since it was implemented in 1938.
As of Aug. 3, President Donald Trump has not issued a direct official response, although general administration policies have opposed higher mandates.
In a statement from the Los Angeles Times, Republican California Gubernatorial Candidate Steve Hilton said a wage increase is an “attack on workers” and will “crush small businesses.”
Rep. Nick LaLota (N.Y) said the following: “Sometimes when states have raised the minimum wage, it actually leads to more unemployment, more automation, less folks getting hired- and that has unintended consequences. So, very appealing to continue to raise the minimum wage, but we should understand the effects,” LaLota said.
Social media users weighed in as well. One user said, “For the record, as a business owner, the higher the minimum wage, the more businesses pay in employer taxes. This cost is then passed onto the consumer. The employee then pays higher income taxes on that raise and, thinking they have more discretionary money, buy more goods at an inflated price and pay even more in taxes. I’m not saying the increase isn’t needed, but who is really benefiting from this…the workers or the State?”
Another user said, “So prices will now just increase as well as unemployment. [They] cannot hire as many workers. Go to any restaurant now, and it is a skeleton crew working.
