Leaving for Las Vegas: California's minimum wage law leaves businesses no choice
Still, if not for the $15 minimum wage, I’d have zero interest in leaving California. In some ways, it’s an ideal time to make clothing here. There's a huge demand for American-made apparel, and the industry infrastructure that exists in Los Angeles — from garment makers to sewing machine repairmen — is difficult to find elsewhere. But businesses can’t operate at a loss.
When you artificially inflate a price, you screw the seller whose product isn't IRL worth the artificial price. People will buy elsewhere, or buy something else. Every single time. The price of labor is like the price of butter. Marxists and other labor theorists disagree, but of course they are wrong. Real world outcomes are demonstrative proof.
Unless you are willing to completely destroy the market and go balls-out commie, there is no escape from this outcome. In which case you get a different set of outcomes, see, e.g., Somolia.
edit x2: typo
