California Declares War on Fast Food Industry

Michael D. TannerCalifornia never seems to run short of bad policy ideas. But the Golden State ’s latest exercise in ignoring the fundamentals of economics has to go to the top of the list.This week the legislature narrowly passed the Fast Food Standards and Accountability (FAST) Recovery Act which would effectively allow the state to set wages, benefits, hours, and working conditions for their fast food industry. The legislation,AB 257, would establish a Fast Food Council as part of the state Department of Industrial Affairs, composed of representatives from fast food franchises, fast food workers, labor unions (euphemistically referred to as “advocates for employees”), and a representative from the Governor ’s Office of Business and Economic Development; the council members would be appointed by the Governor, the Speaker of the Assembly, and the Senate Rules Committee. The Council would have the authority to impose labor agreements on all fast food franchises with at least 100 locations nationwide.And, if the new statewide Council is not enough regulation of the fast food industry, the legislation would also allow any city or county with a population of at least 200,000 to establish their own councils to regulate businesses within their jurisdiction —as long as they don’t reduce any benefits established by the state Council. The ratchet works only one way: they can increase regulations, but never reduce them.In a brief nod to economic sanity,...
Source: Cato-at-liberty - Category: American Health Authors: Source Type: blogs