Tag: Gavin Newsom

  • Portland Faces Off With Trump Again on Federal Forces

    Portland Faces Off With Trump Again on Federal Forces

    Portland, Oregon — Echoes of 2020 reverberated through the streets of Portland this weekend as President Donald Trump ordered the deployment of 200 National Guard troops to the city, igniting a fierce legal and political showdown with Oregon’s Democratic leadership. The move, aimed at safeguarding federal properties like an Immigration and Customs Enforcement (ICE) facility amid ongoing protests, has drawn swift condemnation from state officials who filed a lawsuit Sunday to block what they call an “unlawful” and unnecessary intrusion. As tensions simmer, with at least one reported clash between protesters and federal agents, the episode highlights Trump’s aggressive stance on domestic security in Democratic strongholds during his second term.

    The drama unfolded rapidly over the weekend. On Saturday, Trump took to Truth Social to announce he had directed Secretary of War Pete Hegseth to dispatch “all necessary Troops to protect war-ravaged Portland, and any other ICE facilities under siege from attack by Antifa and other domestic terrorists.” Hegseth followed through Sunday with a memo federalizing 200 members of the Oregon National Guard under Title 10 authority, stationing them in Portland for 60 days to shield federal assets where “protests are occurring or likely to occur.” This legal maneuver allows the president to commandeer state Guard units during perceived national emergencies, bypassing local consent—a tactic Trump employed earlier this year in Los Angeles and Washington, D.C.

    Oregon’s response was immediate and unified. Governor Tina Kotek, Attorney General Dan Rayfield, and Portland Mayor Keith Wilson—all Democrats—jointly sued the administration in federal court, arguing the deployment violates federal law and is based on a “baseless, wildly hyperbolic pretext.” “Oregon communities are stable, and our local officials have been clear: we have the capacity to manage public safety without federal interference,” Rayfield stated. Kotek, who spoke directly with Trump before the order, emphasized at a news conference in Tom McCall Waterfront Park: “Our city is a far cry from the war-ravaged community he has posted on social media. There is no insurrection, there is no threat to national security and there is no need for military troops in our major city.”

    The lawsuit echoes a similar challenge from California in June after Trump’s Los Angeles deployment, which remains unresolved. In that case, a federal judge ruled that while Trump could federalize troops, their activities were constrained by the Posse Comitatus Act, prohibiting military involvement in domestic law enforcement without explicit congressional approval or under the Insurrection Act. Legal experts warn that invoking the Insurrection Act—last used controversially in the civil rights era—could escalate matters further, as it allows broader military intervention in civil unrest. Elizabeth Goitein of the Brennan Center for Justice noted that such deployments have historically required governor requests or overwhelming crises, conditions not evident in Portland.

    On the ground, federal agents arrived over the weekend, leading to immediate friction. Video from local station KATU-TV captured an ICE officer shoving a protester outside the South Portland ICE facility on Friday, with another demonstrator detained amid confrontations. Protests at the site have persisted for months, largely peaceful but marked by arrests, with federal officials accusing demonstrators of threatening officers. Hundreds gathered Sunday night, chanting in opposition to the troops, as captured in social media footage showing tense standoffs.

    Local reactions are mixed. Some residents, like David Schmidt near the ICE building, expressed frustration with ongoing protests: “Every night, there’s tons of protesters basically being vagrants on the street… They are making noise constantly.” Others, such as Ocean Hosojasso, fear a repeat of 2020’s unrest: “I’m just worried that we’re going to see things blow up like they did in 2020.” Senator Jeff Merkley (D-Ore.) advised protesters to avoid direct clashes, suggesting the federal presence aims to provoke conflict. Representative Suzanne Bonamici (D-Ore.) decried it as a “gross abuse of power.”

    Business leaders joined the chorus of criticism. Vanessa Sturgeon of the Portland Metro Chamber stated: “Portland is a city on the rise. We are working to tackle our biggest challenges together… and it does not need federal troops.” Social media buzzed with the hashtag #WarRavagedPortland, featuring ironic posts of serene city scenes to counter Trump’s narrative.

    The administration defends the action as essential protection. Senior aide Stephen Miller highlighted summer protests at the ICE facility, while a Department of War spokesperson declined comment on the litigation. Trump’s broader strategy includes similar deployments, like an impending one in Memphis with Tennessee’s GOP governor’s consent. Even some Republicans, like Senator Rand Paul (R-Ky.), express reservations about troops in cities but acknowledge a federal role in protecting assets.

    As Oregon seeks an emergency injunction, the clash tests the boundaries of presidential power in an increasingly polarized nation. Neighboring officials, including Seattle Mayor Bruce Harrell and Washington AG Nick Brown, planned a Monday press conference to address the trend. California AG Rob Bonta voiced solidarity: “The National Guard is not Trump’s personal police force.” With the lawsuit pending, Portland braces for what could become another flashpoint in America’s ongoing debate over federal overreach and local autonomy.

  • Turns out California’s $20 minimum wage increase cut 18,000 jobs, a study shows

    Turns out California’s $20 minimum wage increase cut 18,000 jobs, a study shows

    A new economic study released this month by the National Bureau of Economic Research (NBER) has found that California’s landmark $20-an-hour minimum wage law for fast food workers has resulted in the loss of approximately 18,000 jobs in the state’s fast-food sector—representing a 3.2% decline compared to similar employment trends nationwide.

    The research, conducted by economists Jeffrey Clemens, Olivia Edwards, and Jonathan Meer, examined employment data before and after the implementation of Assembly Bill 1228 (AB 1228), which was signed into law by Governor Gavin Newsom in April 2024 and took effect on April 1, 2024. Prior to the law, California’s minimum wage for fast food workers stood at $16 per hour.

    “Our median estimate translates into a loss of 18,000 jobs in California’s fast-food sector relative to the counterfactual,” the researchers wrote.

    • Fast-food employment in California fell by 2.3% to 3.9%, depending on the model used.
    • Nationally, fast-food employment grew by approximately 0.10% during the same period.
    • Prior to AB 1228’s enactment, California’s fast-food industry was tracking closely with national employment trends.
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    California Gov. Gavin Newsom speaks to reporters in Sacramento, Calif. on July 25, 2025. © AP

    The authors concluded that the job losses occurred despite overall economic stability in the state and growth in other employment sectors. The wage hike coincided with a period of expansion in the broader U.S. labor market, making the contraction in California’s fast-food sector more striking.

    In response to rising labor costs, many franchise owners across California have either reduced staff, cut hours, or turned increasingly toward automation and digital kiosks to offset payroll pressures.
    Fast food giants like McDonald’s, Wendy’s, and Jack in the Box have begun piloting AI-drive-thru systems and robotic food preparation stations, according to internal industry reports.

    Private equity firms and hospitality-focused investment funds are now closely watching regulatory movements in California and beyond, with some advising caution before expanding labor-intensive operations in high-wage jurisdictions.

    In the stock market, fast food restaurant chains with a heavy California footprint have experienced mixed performance. While some brands have maintained stability due to menu price adjustments, others have seen narrowing profit margins.

    A Q2 earnings report from a California-based Yum! Brands franchisee cited labor costs increasing by 18% year-over-year, with executives forecasting continued pressure through 2026.

    Critics of the law say the findings validate long-held concerns about minimum wage mandates in highly competitive, low-margin sectors.

    Rachel Greszler, an economic analyst for The Heritage Foundation, wrote in a recent Daily Signal op-ed:

    “When it comes to central planning, history keeps the receipts: Wage controls never work… The consequences of this wage hike should be a warning sign—especially for cities like Los Angeles, which recently passed a $30 wage law for airport and hotel workers.”

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    McDonald’s employees on strike rally for higher minimum wage in Los Angeles, Calif. on Nov. 29, 2016. © Getty Images

    In a Monday editorial, The Wall Street Journal called the idea that a major wage increase would spur economic growth “magical thinking.” The editorial also criticized New York City mayoral candidates Andrew Cuomo and Zohran Mamdani, both of whom support similarly aggressive wage proposals.

    “These guys will never learn because they don’t want to see the world as it really is,” the WSJ board wrote.

    Tara Gallegos, Deputy Director of Communications for Governor Newsom, dismissed the study’s conclusions, noting its links to the Hoover Institution, which she claims has a record of publishing “misleading information” on labor issues.

    Gallegos pointed to a February 2025 study from UC Berkeley that analyzed employment data from April to December 2024, which found:

    • Wages increased 8–9% for covered workers.
    • No negative effects on non-covered workers or overall fast-food employment.
    • Number of fast-food establishments grew faster in California than elsewhere.
    • Menu prices increased modestly—by only 1.5% on average, or about $0.06 on a $4 hamburger.

    Gallegos also cited an article from the San Francisco Chronicle (Oct. 2024) that said many of the doomsday predictions around AB 1228 “did not materialize.”

    The Fast Food Council, created under AB 1228, has the authority to raise the minimum wage annually beginning January 1, 2025. This has raised new questions from both businesses and economists about the long-term viability of California’s fast-food sector under escalating labor costs.

    Labor unions, including the Service Employees International Union (SEIU), maintain that the $20 wage has lifted thousands of workers out of poverty and boosted local economies via increased consumer spending.

    Meanwhile, employers, especially small-business franchisees, warn that without offsetting subsidies, tax breaks, or exemptions, continued hikes may further drive automation and business closures.

    As cities like Los Angeles move toward even higher minimums ($30 by 2028), California appears poised to remain the national battleground in the debate over wage policy and economic trade-offs.