Six Shake Shacks are closing in Democrat-run California. The company explained the locations are “not projected to provide acceptable returns in the foreseeable future.”
Five of those six California closings are in Democrat-run Los Angeles.
Shake Shack is also closing one location in Ohio and two in Texas.
The company refused to comment to the New York Post on the question of whether California’s insane $20 minimum wage law had anything to do with these locations being unable to “provide acceptable returns in the foreseeable future,” but I think we all know the answer to that.
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Watsonville Police DepartmentThe Post adds that this is “the first time the chain will close restaurants for purposes that were not construction-related,” according to a Shake Shack spokesperson who spoke with Restaurant Business, a trade publication that first reported on the closings.
All the closings will be complete by September 25.
This is what happens when a fascist government interferes with the free market.
No one is arguing the free market is perfect, but like democracy and America, it is the best we’ve been able to come up with.
When the government arbitrarily imposes a $20 minimum wage, especially across a state like California, which is massive and filled with dozens of different economies (from the urban hellhole of Los Angeles to small desert towns), only bad things will happen; namely, the cost of living will increase, which negates the benefit of a minimum wage increase.
Once a company is forced to pay its employees a ridiculous sum like $20 per hour, two things happen: 1) people lose their jobs, and 2) inflation.
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This Shake Shack news is all you need to know about people losing their jobs, but don’t forget that as employment costs increase, so too do prices. Fast food chains, grocery stores, home improvement stores, and gas stations must all charge more to remain profitable. That increases your cost of living. Your landlord boosts your rent. It costs more to fill your gas tank. Food costs more. And suddenly that $20 per hour doesn’t go as far as it would had the market been left unmolested by the fascist government.
In the end, no one wins.
Keep in mind that in Gavin Newsom’s California, there is another agenda at work here. When the government turns labor into something unaffordable, a black market soon follows. The lunatic leftists who run California unopposed know this, and they know that to remain unopposed they must import Democrats from the third-world. And one way to keep those illegal Democrats flooding into California is to ensure they have jobs through a labor black market created by anti-American-worker policies.
Democrats are evil not dumb.
John Nolte’s first and last novel, Borrowed Time, is winning five-star raves from everyday readers. You can read an excerpt here and an in-depth review here. Also available in hardcover and on Kindle and Audiobook.
