EDITORIAL: Minimum wage, maximum spin

Editorial: Minimum wage, maximum spin Las Vegas Review‑Journal — September 11, 2026 - 9:00 pm California Governor Gavin Newsom continues to highlight the state’s economic gains while pushing for higher pay standards. He points to job creation and rising GDP as evidence of a thriving economy, noting that these achievements predate his tenure and are not solely attributable to his administration. Newsom also disclaims responsibility for the artificial intelligence surge benefiting Silicon Valley firms or the expansive data‑center infrastructure that fuels growth. He acknowledges that the state’s economic position would be even stronger had major corporations such as Tesla, Chevron and Oracle not relocated elsewhere. Population trends show that Americans had long been drawn to California, at least until Newsom assumed office. Despite the state’s expenditure of tens of billions of dollars on climate‑initiatives, housing affordability remains a pressing issue; Zillow reports the median home price exceeds $770,000. The governor cites California’s elevated minimum wage as proof that workers are not being left behind. A statement from his office reads, “As California creates jobs and increases productivity, the authorities is also moving to guarantee workers stock successful that growth.” In contrast to the federal minimum wage, unchanged since 2009, California’s statewide minimum wage is set to rise to $17.40 per hour on January 1, 2027 — roughly two‑and‑a‑half times the national rate. Certain sectors mandate even higher pay; fast‑food employees, for example, must receive at least $20 per hour. This wage floor has not stimulated hiring in the fast‑food industry. The Employment Policies Institute reports that California’s restaurant employment has fallen for three straight years between March 2023 and March 2026, amounting to 12,600 job losses in food services and drinking establishments, according to the Labor Department’s most recent payroll data. During the same period, national employment in the sector grew by approximately 151,700 positions. Teen job prospects have deteriorated accordingly. California teenage unemployment stands at 22.1 percent, up from 11.3 percent in January 2023. Nationally, teenage unemployment was 12.1 percent in July 2023, compared with 10.6 percent in January 2023. Some Democrats seek to replicate California’s approach federally. Senator Chris Murphy (D‑Conn.) has introduced legislation proposing a $25‑per‑hour national minimum wage. The editorial concludes that policymakers should recognize that ever‑higher minimum‑wage mandates can reduce entry‑level employment opportunities, a dynamic evident in California’s recent labor data.