It was stated to me by a member of the California State Assembly that “this generation is the first generation that is less concerned with survival than it is about improving the quality of life.” While that may be true in some instances, California’s job creators are absolutely trying to survive the current business climate that can only be described as the worst blizzard of overburdensome regulations on record.
Policymakers make valid points when they speak of the high volume of residents living in poverty. However, perhaps it is time they took a long look in the mirror on why that is. Over the years, due to overly burdensome regulations and laws the cost of living in California has skyrocketed. The basic essentials of food, water, and shelter are difficult for many to obtain without assistance. Even people making good wages have a hard time becoming homeowners in many areas of California today. And why is that? The cost of living has gone up because of how expensive it is in California to build something, or start a business, or hire an employee, or make something, or a number of other things you can take your choice on. The more expensive it is for business to do something, the more expensive it is for the end consumer that needs to purchase that commodity.
Not only have policymakers made living here so expensive, they have systematically contributed to companies relocating good paying middle class jobs that Californians depend on. California was built on innovative private sector companies that relied on the skill and talent of hardworking Californians. What do Aerospace, Energy, and Trade all have in common? They were all major industries that thrived in California and employed millions of middle class workers. They also have been under attack and have been relocating operations and job opportunities to places where they really feel wanted. The roll of an elected official is not to create jobs, but rather to create a business climate in which jobs can be created. This is something California’s leaders have failed at for the better part of two decades.
Now, what is the best way to fix the broken class structure we have? Obviously, it is more government mandates right?! Or maybe now is the time to rethink how we do thinks as a state and as a society. Mandating a higher minimum wage is not a way to solve poverty. In fact, studies show it is quite the opposite. Increasing the minimum wage actually increases poverty by decreasing the number of job opportunities and increasing the cost of living through artificial inflation.
Here is the bigger question. Why are there so many Californians trying to survive on minimum wage jobs and public subsidies? Perhaps we forget, but minimum wage employment was never meant to be a job people had to support their families. Minimum wage jobs were meant to create a reasonable baseline for businesses creating entry level job opportunities. Why are so many people stuck in minimum wage jobs? Once again let’s take a look in the mirror. Perhaps it is because our public education system has failed us by not training California’s youth for employment, but rather to be learned members of society? Or maybe it is because we have failed to keep up by retraining our skilled workers to be able to adapt to the new generation of jobs coming that are being created? Or maybe, just maybe it is because California has created so many laws and regulations that there are no next level job opportunities because job creators have left us and created those jobs elsewhere? Actually, it is a little of all three.
If it ain’t broke, don’t fix it. But when it is broke because we keep taking the same outdated approach to fixing our societal problems, we need to change the way we operate. Government has created the disparity between rich and poor in California. Government has helped increase the cost of living and decrease the number of employment opportunities. How can we expect the government to fix it?
California needs a new approach. We cannot fix the increased cost of housing by mandating rent control, we need to increase the number of available homes on the market. We cannot decrease poverty by increasing minimum wage, we need to increase the number of middle class jobs and make sure our populous has the skills to earn those opportunities. Quite frankly, these too are simple economic issues. It all boils down to “Supply and Demand”. Right now we have the demand for more good jobs and the demand for more affordable housing, but until we have the supply of non-minimum wage jobs that will increase opportunities towards affluence, until we have an increase in the number of skilled workers that qualify for those opportunities, and until we have the supply of housing that allows for a more affordable cost of living we will be forever trying to answer the same questions. Stop asking the question “how do we make it possible to live on a minimum wage job?” and start asking “how do we create more jobs people can live on?!”
People Post is an occasional column featuring readers’ commentary, articles from guest writers, and letters to the editor. The views expressed in this column do not necessarily reflect those of the Long Beach Post, nor its editorial staff. To submit an article to People Post, email [email protected].