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Home / News / Politics / Experts analyze why CA propositions on minimum wage, rent control failed

Experts analyze why CA propositions on minimum wage, rent control failed

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By Suzanne Potter, Producer

California political analysts say inflation and voter confusion contributed to the failure of propositions to raise the minimum wage and allow stronger rent control.

Proposition 33 would have allowed local governments to pass strict new rent-control ordinances.

Christian Grose, professor of political science and public policy at the University of Southern California’s Dornsife College and Price School of Public Policy, said voters may have found the measure to be overly complex.

“We did some polling on this back in September, and we found a lot of people were undecided,” Grose said. “I think it’s a confusing initiative for a lot of voters, and so often when people aren’t certain what the effects are going to be, they’ll just vote no.”

Opponents of Prop. 33 argued that more rent control would discourage construction of new rental units, thus thwarting attempts to increase the supply of housing.

Proposition 32 would have raised the minimum wage to $18 an hour for companies that have 26 or more employees, and to $17 for smaller companies.

Grose called the defeat surprising, as California recently raised the minimum wage — but only for fast-food workers.

“With inflation, there’s some concerns about raising minimum wage will then lead to increased costs. So people who traditionally would support minimum wage maybe are opposed,” he said.

Opponents of Prop. 32 warned it would have hurt California businesses and led to an increase in the cost of goods and services.

Keely O’Brien, policy advocate with the Western Center on Law and Poverty, said Prop. 32 would have helped the working poor at a time when poverty is the highest it has been in years.

“In early 2023, 31% of California residents were either poor or near poor, and nearly 76% of poor Californians lived in families with at least one working adult. So these are not, these are families who are working. They’re often working really hard, and they’re still not. They still don’t have the resources that they need,” O’Brien said.

Disclosure: University of Southern California Dornsife College of Letters Arts and Sciences and USC Price School of Public Policy contributes to Public News Service’s fund for reporting on Arts & Culture, Cultural Resources, Social Justice. If you would like to help support news in the public interest, visit https://www.publicnewsservice.org/dn1.php.

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