Entrepreneur and “Shark Tank” cohost Kevin O’Leary recently laid bare the devastating impact of Governor Gavin Newsom’s minimum wage policies on California’s economy. His blunt critique reveals just how much one man’s decision can reverberate, turning a vibrant state into a mirror image of a struggling nation like Venezuela.
In a recent conversation on Fox Business’s The Big Money Show, O’Leary pulled no punches. He placed the blame for the state’s waning economy squarely on Newsom. The Governor’s controversial decision to increase the minimum wage has hit the restaurant industry particularly hard. This, says O’Leary, was part of what’s transforming the Golden State into a “version of Venezuela.”
While filming for the 16th season of “Shark Tank” in California, O’Leary offers firsthand experience of the devastating effects the minimum wage policies are having on the casual dining industry. He cites the Assembly Bill 1228, which necessitates all fast-food outlets to pay their employees $20 per hour, as a significant contributing factor.
Witnessing the situation on the ground, O’Leary shares his growing concern about restaurants. He points out that they’re closing down right and left, and doesn’t shy away from attributing it directly to Governor Newsom’s disastrous policies. For O’Leary, Newsom’s handling of the situation is turning California into “a sort of version of Venezuela.”
It’s not just the restaurant industry feeling the pinch. According to O’Leary, this policy mistake on minimum wage is “killing business,” driving away valuable capital to more business-friendly states like Tennessee, Florida, and Texas.
Discussing the issues with Jackie DeAngelis, Fox Business anchor, O’Leary asserts that already struggling businesses are feeling the squeeze even more. Heightened costs, higher wages, and less foot traffic all point towards a decelerating economy, precisely at a time when business support should be the priority.
Though O’Leary labels Newsom as a “nice guy,” he can’t help but highlight how much of a “bad manager” he has been for California. Even for someone who has been visiting California for 15 years, the state, in its present state, is a mere shadow of its former glory due to Newsom’s poor management.
As a conclusion, it’s fair to say that the situation in California is just another example of misguided policies gone wrong. While politicians may pursue these policies with good intentions, it is vital to consider the consequences fully. In this case, Newsom’s handling of the minimum wage has not just crippled businesses, but it is also causing a fundamental shift in California’s economy. If things continue this way, the Golden State could resemble less of a dream and more of a nightmare for aspiring entrepreneurs and businesses alike. It’s a lesson in balancing intentions with reality-based decision making that others could learn from.
