The California State Assembly recently passed a bill that received minimal recognition by the press, outside of the state, but has substantial negative consequences for basically everyone in the country. Once signed by Jerry Brown, the bill, known as AB 1066, will make California the only state in the entire country to provide overtime wages to ag workers after 8 hours a day or 40 hours per week. This change will add about $1.7BN annually to the cost of growing food in California which will ultimately be passed along to consumers. And since eating isn't really optional, this is effectively a $1.7BN tax that California has decided to levy on the entire country. Worse yet, increasing food prices is essentially the most regressive form of "tax" possible given the disproportionate share of wages spent on food by low-income families. And, while you may not know it, California is an agricultural powerhouse that produces roughly 1/3 of all vegetables consumed in this country and 2/3s of the fruits and nuts.
Capitalism's response: The self driving tractor. Goodbye, farm workers! You'll never be able to enjoy that socialist wage hike imposed by the politicians in return for your vote.
The only question is, when will the electorate wise up to this game?
I think that the move was to allow more Mexicans (Democrat Party potential voters) into the country to insure Party dominance. At least that's how I see it. More workers, no overtime. It also makes crops from Mexico much more attractive from a cost perspective. I could go into the Mexican end in much greater detail, but no need really. You can e-mail if you have an interest. Other states will begin to raise hydroponic vegetables where they can and will beat out the price of California goods. It might be a good thing in the long run. That's not what Brown and friends were looking for but there are always unintended consequences.
ReplyDeleteThey (CA) are also pushing the cow fart tax again. I guess that giant methane leak from the fracking accident earlier thus year has to be addressed somehow (sarc).
ReplyDeleteThe most dangerous methane leak is from Sacramento, and happens each time the legislature is in session.
DeleteUnintended consequences are a better prediction. The increase in costs may mean that we will all be paying more for fruits and vegetables flown in from half-way round the world to supermarkets across the country, as these products, while expensive, are less costly (and come with less regulatory BS) that Californian. California agriculture (and those better paid, but now unemployed) workers will take it in the ear; while Hollywood and the rest of the silver-spoon progressives (big labour, etc) will salute their success with Champagne as they search for new victims to "help"...
ReplyDeleteWell put. California will be begging for a bail-out, in the same way as all Socialist wet dreams end up doing.
DeleteThis is shear stupidity, and I pray this comes back to bite them.
ReplyDeleteWhat I can't comprehend is Why they are doing this... can they not, or do they not care that this further hurts the backbone that feeds this country and much of the third world.
No, they only care about getting those farmworker votes, and now with this bill they can say that they got them a raise. Who wouldn't vote for a raise, of course. Next comes the pink slip for the easily bought, but the politicians won't care, because they will have bought one more election using the money of their political enemies, and because the destitute and out of work are even more easily owned by this technique. It's back to serfdom for the bottom third of the population.
DeleteI don't worry about this tax. Having been raised on a farm this tax is likely to devastate their dairy industry and also cause the relocation of even more vegetable, nut and fruit production to other states and to south of the border or even South America. Changing the price of any commodity will quickly change how much consumers buy. Look at gas prices. California will look like Venezuela soon enough.
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