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Gabriel Dillard

published on December 29, 2023 - 12:30 PM
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Sometimes all you can do is admire the elegance with which the law of unintended consequences drives against even the best intentions.

The unanticipated effects of action are the building blocks of economics, Adam Smith’s “invisible hand” pulling the strings and ensuring self interest translates into community good.

When it comes to legislation and regulation, however, the outcomes can often be poor.

Dan Walters with CalMatters recently pointed out one example, the 2016 law that decreed an eight-hour day and 40-hour work week for agricultural labor. The overtime didn’t come rolling in, however, as employers limited farm laborers to 40 hours a week. Workers saw a reduction of $100-$200 a week when farmers couldn’t pass overtime costs to customers.

What are the unintended consequences of California’s upcoming $25 health care worker minimum wage. It’s projected to cost $4 billion in the 2024-25 fiscal year alone. The expected outcome is more layoffs, downsizing and even bankruptcy as the health care industry deals with the existential threat of lower Medicare reimbursement rates.

We are seeing the consequences now of the fast food $20 minimum wage coming in April, One South Valley Pizza Hut is among the locations across the state laying off a reported 1,200 SoCal delivery drivers in favor of services like Uber Eats and DoorDash.

Here’s another one.

California’s gas tax revenue — used to fix and maintain roads — is projected to drop by nearly $6 billion in the next decade as climate programs and electric car rules take hold. The decline in revenue will come as gas-powered vehicles are intentionally phased out.

If the goal is to have more electric cars on the road, then what does it mean that electric vehicles can weigh up to 30% more than gas-powered vehicles? They’ll put more wear and tear on the roads while generating no gas tax revenue.

Maybe if doing more and more results in what you didn’t what or expect, it’s time to start doing less. 


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