Proposition 32 was just rejected. In blue California, why did the minimum-wage boost fail?

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Posted on 11/20/2024 5:14:10 PM PST by E. Pluribus Unum

Californians, who have historically supported efforts to raise the minimum wage, were not swayed this time around.

After two weeks of postelection uncertainty, Proposition 32, the initiative to increase the state’s minimum wage to $18 an hour, was defeated by a narrow margin.

The rejection was “a pretty poignant sign of the times in a state like California,” said John Kabateck, state director of the National Federation of Independent Business, which had urged voters to vote no. “It is certainly sending a message that Californians across the political spectrum are fed up with higher costs and greater uncertainty on Main Street.”

Proposition 32 was declared defeated after falling just short, with 49.2% voting “yes.” The Associated Press called the race on Tuesday evening.

The outcome was the latest indication of a rightward shift in the reliably blue state, which saw a number of surprising results from the Nov. 5 election. Voters overwhelmingly supported a ballot measure to undo a decade of progressive criminal justice reform, and rejected an initiative that would have banned forced prison labor.

Opponents and economists said that by striking down the proposed minimum-wage increase, voters signaled that they were nervous about businesses raising prices to offset their added labor expenses. The prospect of paying more for consumer goods was especially unappealing after years of high inflation, which has led to a persistent feeling among many people that they’re on shaky financial footing.

“Arguments about the minimum wage are always very emotional,” said Till von Wachter, an economics professor at UCLA. “Economic issues are top of mind right now, and that can lead to a rejection of a higher minimum wage.”

(Excerpt) Read more at latimes.com ...

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