More inflation is coming your way. California again leads the way.

Please note California Gov. Gavin Newsom Signs Law to Raise Minimum Wage for Fast Food Workers to $20 Per Hour.

California fast food workers will be paid at least $20 per hour next year under a new law signed Thursday by Democratic Gov. Gavin Newsom.

When it takes effect on April 1, fast food workers in California will have among the highest minimum wages in the country, according to data compiled by the University of California-Berkeley Center for Labor Research and Education. The state’s minimum wage for all other workers — $15.50 per hour — is already among the highest in the United States.

Cheering fast food workers and labor leaders gathered around Newsom as he signed the bill at an event in Los Angeles. “This is a big deal,” Newsom said.

The $20 minimum wage is just a starting point. The law creates a fast food council that has the power to increase that wage each year through 2029 by 3.5% or the change in averages for the U.S. Consumer Price Index for urban wage earners and clerical workers, whichever is lower.

A Big Deal Indeed, Expect More Inflation

Yes, governor, this is very big deal. It will increase the cost of eating out everywhere.

The bill Newsom signed only applies to restaurants that have at least 60 locations nationwide — with an exception for restaurants that make and sell their own bread, like Panera Bread (what’s that exception all about?)

Nonetheless, the bill will force many small restaurants out of business or they will pony up too.

30 Percent Raise Coming Up!

If McDonalds pays $20, why take $15.50 elsewhere?

The $4.50 hike from $15.50 to $20 is a massive 30 percent jump.

Expect prices at all restaurant to rise. Then think ahead. This extra money is certain to increase demands for all goods and services, so guess what.

Expect More Inflation Everywhere

Biden is doing everything humanly possible to stoke inflation with EV mandates, natural gas mandates, union pandering, student debt forgiveness, and regulations, some of which is blatantly unconstitutional.

Meanwhile, California is setting the standard for all the blue states with his own set of preposterous laws.

Oil Price Tops Highest Level Since Summer of 2022, What About the SPR?

(Click on image to enlarge)

$WTIC West Texas Intermediate Crude chart courtesy of StockCharts.Com, yesterday’s close, annotations by Mish.

On the energy front, please note Oil Price Tops Highest Level Since Summer of 2022.

Irony of the Day: California Regulations Boost Diesel Truck Orders

Also note the Irony of the Day: California Regulations Boost Diesel Truck Orders

“The vehicles don’t exist, the infrastructure does not exist, grid reliability is sketchy, there’s nothing to protect public agencies from price gouging,” said the League of California Cities and State association of Counties in a letter to the air board.

Mish: It’s not that I am a big fan of diesel. In fact, I am no diesel fan at all. But you cannot double or triple costs on the industry when the infrastructure is not even in place.

Refining Capacity Energy Crunch

Thanks to Biden’s nationwide regulations, refining capacity is shrinking.

Here is the result: Energy Crunch: Demand for Diesel and Jet Fuel Soars But Refining Capacity Sinks

Biden Newsome Tag Team

Biden’s energy policies have made the US less secure on oil, more dependent on China for materials needed to make batteries, fueled a surge in inflation, and ironically did not do a damn thing for the environment, arguably making matters worse.

See  The Shocking Truth About Biden’s Proposed Energy Fuel Standards for discussion of the administration’s admitted impacts of Biden’s mileage mandates.

Newsom is doing everything he can to make things even worse.

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