California never learns. Actually, let me be more specific: leftists never learn.
The people are already reeling from the statewide minimum wage hike signed into law by Gavin Newsom, which went into effect a little over a year ago—since then, businesses and the job market have been in total turmoil. We saw the closure of a beloved restaurant that had been open for thirty years, and a report from March of this year revealed that “the state is shedding jobs at an alarming rate,” estimating that number was around 16,000.
Yet, the obvious link between a government mandated increase in the minimum wage and economic fallout did nothing to deter the Los Angeles city council from upping the ante, which recently voted to mandate a phased-in citywide minimum wage hike for hotels and airport workers: The first increase up to $22.50/hour will happen this month, and by 2028, that number needs to be $30/hour.
One big problem though is that the hotels in Los Angeles are struggling. If you didn’t know any better, you might wonder how in the world are hotels in southern California losing money? Southern California has always been a tourist hotspot: it’s got surfing, hiking, Hollywood, world-class food, and lots of sunshine.
But, you do know better: years of far-left Democrat control destroyed it. Who wants to vacation in a city where bums, hypodermic needles, and human waste cover the sidewalks? Iconic designer boutiques along Rodeo Drive have closed for good, citing smash-and-grab crime as the reason. And the local government’s position against immigration law and order recently turned the city into a third world riot scene.
About a month-and-a-half ago, Karen Palmer at SF Gate wrote that “Los Angeles tourism has fallen off a cliff” — but like any good useful idiot, she blames the scamdemic and wildfires. Ironically, both of those reasons are also Democrat-induced problems.
Anyway, according to an item published at the New York Post, hotel owners are “fed up” with the attacks on business. As in all leftist-controlled economies, the goal of these hotel owners is just to “survive” and keep their head above water until help arrives—spoiler alert, you voted your way into communism, but you won’t get to vote your way out. Haven’t they “seen this movie” before?
One hotel owner reveals exactly where that money will come from, if at all:
‘You’re going to have a lot of hotels in Los Angeles that will become run down,’ Beccaria said. He also told the WSJ that he put a hold on a $10 million planned renovation of his hotel due to the wage increase.
Cue the bed bugs, roaches, stained mattresses, grimy amenities, and crumbling ceilings and walls. What’s absurd is that in the next few years, LA is set to host the Olympics, the Super Bowl, FIFA World Cup games, and an NBA All-Star game—is this really what Democrats want the world to see?
Now, here’s the kicker:
‘We would love to sell,’ Jon Bortz, chief executive of Pebblebrook Hotel Trust, told the WSJ, referring to his hotels. Bortz owns about 9 hotels, two of which are located in the city and seven others in the greater-L.A. area.
‘But nobody will buy them,’ Bortz added.
Nothing destroys property values like a leftist government!
New York: Los Angeles is your canary in the coal mine.
Image from Grok.