California Democratic Governor Gavin Newsom 'DISQUALIFIED' From 2028 Run — He's In Major Trouble as His $20/Hr. Fast
SACRAMENTO, CA — Two years ago, California Governor Gavin Newsom signed the FAST Recovery Act to the sound of cheering union leaders and flashing cameras. The legislation mandated a historic $20 minimum wage for fast-food workers across the state, a move Newsom proudly hailed as a “win-win-win” for employees, restaurant owners, and customers alike.
Today, that progressive experiment has completely unraveled, leaving behind a devastating trail of mass layoffs, shuttered restaurants, and furious consumers. The fallout has become so severe that political insiders are quietly wondering if this self-inflicted economic wound has permanently disqualified Newsom from a 2028 presidential run.
THE 20,000 JOB EXODUS
Far from the utopian victory promised by the governor, the reality on the ground has been catastrophic for one of California’s largest entry-level job sectors.
According to data from the Employment Policies Institute (EPI)—drawing directly from Bureau of Labor Statistics numbers—the state’s fast-food industry has been decimated.
California has shed nearly 20,000 fast-food jobs since the law was signed.
These losses account for almost one-quarter of all fast-food job losses nationwide over the same period.
The statistics represent real human livelihoods. Following the steep, sudden rise in labor costs, two major Pizza Hut franchisees were forced to lay off more than 1,200 delivery drivers. Other beloved chains, including Mod Pizza and Foster’s Freeze, realized their razor-thin margins had disappeared overnight and made the drastic decision to close California locations entirely.
To offset the massive payroll spikes, owners are now racing to replace part-time employees with self-ordering kiosks and automation technology.
WORKERS LOSE $4,000 IN INCOME
Even the workers who managed to keep their jobs are feeling the sting of unintended consequences. To survive the $20 mandate, restaurants are violently slashing schedules.
The EPI estimates that non-tipped restaurant workers have seen their hours cut by an average of 250 hours annually. Under the state's previous minimum wage, that equates to roughly $4,000 in lost income per worker.
“Newsom’s $20 wage has turned out to be nothing more than a boost to his own ego at the expense of fast-food workers,” said EPI research director Rebekah Paxton. “His consistent claim that the law is a ‘win’ is out of touch with reality, and lawmakers looking to mirror his job-crushing policies should think twice.”
CONSUMERS FOOT THE BILL
The financial pain isn't just hitting the workers and business owners; it is being directly passed on to families already stretched thin by inflation.
According to menu price data from Datassential, fast-food prices in California skyrocketed by more than 13% after April 2024. That price hike is nearly double the average increase seen in the rest of the country.
The American Cornerstone Institute issued a stark warning regarding the survival of small businesses, noting that mom-and-pop shops simply cannot absorb these higher expenses like global corporations can.
"In the same manner, a state-wide minimum wage doesn’t make sense when applied uniformly across a state as big as California," the group noted, highlighting the massive cost-of-living disparity between affluent areas like San Francisco and rural regions like the Central Valley.
A NATIONAL CAUTIONARY TALE
While supporters of the law have desperately pointed to a UC-Berkeley study claiming the wage hike only increased prices modestly and didn't reduce employment, business owners and workers living through the reality on the ground have completely dismissed the study for ignoring the highly visible closures and slashed hours happening in real time.
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For Governor Newsom, the political stakes are massive. The FAST Recovery Act was explicitly sold as a national model—a blueprint for a future presidential platform. Instead, it has become a glaring symbol of the disconnect between progressive rhetoric and basic economic reality. Notably, the governor's office has remained completely silent on the latest round of dismal employment data.
"California was the test case, and it failed," stated one Republican strategist. "If Democrats try to scale this nationwide, the result will be disaster for workers and consumers alike."
