01/09/2025

News

Here’s Why 2016 Was Rough For Bay Area Restaurants

Most people can agree that 2016 was a hard year. And in the Bay Area, one group was hit particularly hard: restaurateurs. It seemed like every week, a beloved eatery closed, while another one opened, only to shut down a few months later. As the Bay Area continues to enjoy tech-fueled economic growth, the restaurant industry has suffered, even as the accolades–in 2015 Bon Appetit named San Francisco the country’s best food city!–continue to pile up. . . In 2017, the restaurants you go to–from the hole-in-the wall joint near your office to the fancy, anniversary dinner spot–will look different. They might be closed one day a week, to make up for their shortage of qualified staff. Your go-to dish might be more expensive, to make up for the rising minimum wage. They might be closed for good, and quickly replaced with an EDM bubble tea shop. . . Many restaurant owners see fast casual restaurants, instead of ones with full table service, as the solution to their economic woes. No table service cuts down on labor costs, offers diners a cheaper experience while shorter menus means a more efficient use of expensive labor.

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No Recovery: An Analysis of Long-Term U.S. Productivity Decline

The tech sector and professional services of the United States are world class; they draw skilled workers from every country, akin to professional European football teams. The same could be said of top universities in the United States. But the rest of the economy — especially the U.S. healthcare and education sectors — are not world class, and the country’s top universities serve just a tiny fraction of the U.S. adult population. These sectors — as well as housing — have racked up tremendous expenses for consumers, businesses and taxpayers but provided relatively little value in return, as this report will describe in detail. As a result, the great strengths of the United States are offset by great weaknesses.

Research & Studies
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Workers can’t be on call during rest breaks, California’s high court rules

Employers in California can’t keep their workers on call during short rest breaks and must give up any control over how they spend that time, the state Supreme Court said Thursday in a case that pitted labor activists against business groups.

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Trump and California’s Economy

Defenders of California’s status-quo claim to be proud of California’s economic growth and worry about what Trump will do to that growth. If you are so impolite as to mention that this has been California’s slowest recovery in 70 years, as the following chart shows, you will be told that slow growth is good. . . That’s nonsense. Slow growth is anti-poor and anti-minority. Here’s a simple way to analyze economic policy: Ask how the policy changes the probability of a young person finding a job. If the policy increases their chances, it’s good policy. If it decreases the probability, it’s bad policy.

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Steven Greenhut: In California, the state insurance industry is run by commissar’s edict.

What kind of financial stability can any insurance company have in California if at any point insurance officials can decide to retroactively decrease the prices they charged consumers? . . . But Rex Frazier, president of the Personal Insurance Federation of California in Sacramento, captured the significance here: “The Department of Insurance just reversed over 25 years of consistent legal interpretation, claiming new powers to order retroactive premium refunds with the stroke of a pen, no public debate and no explanation. If their authority to do this was that clear, why did it take a quarter of a century to find it? Their view of the law is wrong, and their suspicion of due process is worse. Even the IRS would think this is heavy-handed.” . . . Some argue it [Prop 103] ended up boosting insurance-industry profits by reducing competition. But that latter point doesn’t make the latest departmental edict anything other than what it is. It’s a taking, and a particularly troubling one because of the uncertainty it offers for the state’s insurance industry and for California businesses in general.

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Editorial: Can Trump Undo Obama’s Last-Minute, Job-Killing Regulations?

In recent days, Obama has unveiled five major “midnight” regulations at the Environmental Protection Agency and the Department of the Interior, a report from the American Action Forum  (AAF) shows. Alone, these new rules will cost about $5.1 billion a year and require at least 350,000 hours of paperwork from companies. In addition, three other lesser rules will add an estimated $898 million to the regulatory tab, and another 146,000 hours of paperwork. The bottom line: These new rules that Obama is making the law of the land with little fanfare and no input from Congress will cost us $6 billion a year and nearly half a million hours of paperwork. We pay for these, by the way, not companies. The impact of this kind of rule-making is cumulative. Since 2009, when Obama took office, the EPA and Interior have added $349 billion in regulatory costs. As the late, great Illinois Sen. Everett Dirksen once supposedly joked, “A billion here, a billion there, and pretty soon you’re talking real money.” That’s where we are now.

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Commentary: Doomed to Stagnate?

There’s nothing “secular” about our low rate of growth, goes the argument: It’s just the result of the never-ending accretion of ever more costly and time-consuming regulations, all of which could, in theory, be overturned at a stroke. These regulations go largely unnoticed by coastal elites because we’re mostly in the business of producing and manipulating words—as politicians, lawyers, bureaucrats, academics, consultants, pundits and so on. But regulations (and those who profit from them) are the bane of anyone who produces or delivers things: jet engines, burgers, pool supplies, you name it.

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Labor shortage, fees leading builders to delay projects

A one-two punch of unwavering fees and unavailable labor is leading many homebuilders to seek extensions of entitlements for projects across the region.

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Solar installations reach record high in the third quarter

California, by far the nation’s leader in use of solar, led the expansion and became the first state to install 1 gigawatt of solar power in a single quarter, according to the Solar Energy Industries Assn.

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U.S. to give 30-year wind farm permits; thousands of eagle deaths seen

“Wind farms will be granted 30-year U.S. government permits that could allow for thousands of accidental eagle deaths due to collisions with company turbines, towers and electrical wires, U.S. wildlife managers said on Wednesday. The newly finalized rule, to go into effect on Jan. 15, extends the current five-year term for permits that allow for the accidental deaths of bald and golden eagles. The bald eagle is the national emblem of the United States.”

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California’s climate fight could be painful — especially on job and income growth

Californians are likely to pay more for gasoline, electricity, food and new homes — and to feel their lives jolted in myriad other ways — because their state broadly expanded its war on climate change this summer.

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Southern California’s construction industry is rebounding — slowly

The study notes that the 313,700 workers who were employed in 2015 fell 23.7 percent, or nearly 98,000, below the number who were employed at the industry’s peak in 2006.

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Europe’s green energy policy is a disaster for the environment

The EU gets 65 per cent of its renewable energy from biofuels – mainly wood – but it is failing to ensure this bioenergy comes from sustainable sources, and results in less emissions than burning fossil fuels. Its policies in some cases are leading to deforestation, biodiversity loss and putting more carbon dioxide in the atmosphere than burning coal.

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How far behind is California on electric cars?

California’s push for zero-emission vehicles is going agonizingly slowly – sort of like getting stuck behind those Prius drivers who refuse to step on the gas so they can stay in glide mode.

Slow website
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Energy Poverty Is Much Worse for the Poor Than Climate Change

Some 1.2 billion people do not have access to electricity, according to the International Energy Agency’s World Energy Outlook 2016 report. About 2.7 billion still cook and heat their dwellings with wood, crop residues, and dung. In its main scenario for the trajectory of global energy consumption, the IEA projects that in 2040, half a billion people will still lack access to electricity and 1.8 billion will still be cooking and heating by burning biomass.

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