Customer still pays the raised wage price, but a new company gets injected as a middle man. That’s the true American dream. Same income for the business, but another layer of corporations cleans up instead of the people actually making the work happen.
They should create incentive by taxing the shit out of businesses and offering tax breaks for actually offering living wages and benefits to their employees. If the “correct” answer in capitalism is to find the cheapest solution, make it expensive to make choices that are a detriment to the community the business operates in.
They should create incentive by taxing the shit out of businesses and offering tax breaks for actually offering living wages and benefits to their employees. If the “correct” answer in capitalism is to find the cheapest solution,
I think this is a novel idea and an interesting thought experiment.
If we passed this federally, I think it’s most likely we see an outsourcing - to ourselves. With the market floor raised so high across the board, distortionary effects would then kick in and what I posit we’d see is a shitload of both business and consumer flight to rural areas.
Prices for rent, obviously, would go through the fuckin roof. This would cause a mass exodus to surrounding areas, but I think business investment would actually beat them, because if you’re paying 60k/year anyway, you may as well put your facility in the cheapest possible location.
Businesses are already shifting toward being physically close to their suppliers/major logistics hubs, to save cost elsewhere, so big “shipping towns” (which are, essentially, a few big wholesale distributors and nothing else) could see massive investment.
What’s weird for me is that this may actually help our housing situation in the medium term, as explosive growth in these areas even out demand hotspots.
Idk about high raises in labor market floors to predict much beyond that, but it’s something I’ll definitely check out.
These aren’t completely pie-in-the-sky proposals, either. Simply tying maximum compensation for publicly owned companies would start this kind of a chain rolling, in a smaller way, I think. Labor prices would jump ludicrously just from the amount of low-skill labor employed by major companies.
Inflation would be bonkers and you can’t raise interest rates too fast or you basically nuke your economy, so how this plays out for the average joe is anyone’s guess. Fun to think about tho
I can’t for the life of me think that this will be good for them though. Food delivery services are notoriously shitty/slow. If I order a pizza and have to wait for an intendent person to come pick it up and deliver it when ever is convenient for them? Thats not gonna work for me… and I would be loud and boisterous to the company.
In an alternate timeline where restaurants never thought to offer delivery (or regulated against it…since objectively it is kind of strange how we do it now), but did offer takeout, I’d expect private food courier services would have thrived. Especially in denser areas.
Even in an era before DoorDash and internet, it’d be a call-center/concierge style.
But also gig drivers aren’t getting the minimum. Uber and Lyft promise you’ll make the minimum through the ride fares if you work a whole hour. But that doesn’t happen. Many people don’t notice because the pay is distributed across the rides but some have actually done the math with their daily totals. They also just lost a court case about paying mileage, so they not have to reimburse mileage they weren’t doing before.
With a business climate like that it’s no wonder everyone else is jettisoning delivery drivers. The rideshare companies are getting away with murder by comparison.
Is no one else going to blame an overly specific minimum wage? I couldn’t find anything too specific but in California, it looks like:
Of course they’re going to outsource drivers, This looks like a nice Christmas gift to UberEats/DoirDash
Customer still pays the raised wage price, but a new company gets injected as a middle man. That’s the true American dream. Same income for the business, but another layer of corporations cleans up instead of the people actually making the work happen.
They should create incentive by taxing the shit out of businesses and offering tax breaks for actually offering living wages and benefits to their employees. If the “correct” answer in capitalism is to find the cheapest solution, make it expensive to make choices that are a detriment to the community the business operates in.
I think this is a novel idea and an interesting thought experiment.
If we passed this federally, I think it’s most likely we see an outsourcing - to ourselves. With the market floor raised so high across the board, distortionary effects would then kick in and what I posit we’d see is a shitload of both business and consumer flight to rural areas.
Prices for rent, obviously, would go through the fuckin roof. This would cause a mass exodus to surrounding areas, but I think business investment would actually beat them, because if you’re paying 60k/year anyway, you may as well put your facility in the cheapest possible location.
Businesses are already shifting toward being physically close to their suppliers/major logistics hubs, to save cost elsewhere, so big “shipping towns” (which are, essentially, a few big wholesale distributors and nothing else) could see massive investment.
What’s weird for me is that this may actually help our housing situation in the medium term, as explosive growth in these areas even out demand hotspots.
Idk about high raises in labor market floors to predict much beyond that, but it’s something I’ll definitely check out.
These aren’t completely pie-in-the-sky proposals, either. Simply tying maximum compensation for publicly owned companies would start this kind of a chain rolling, in a smaller way, I think. Labor prices would jump ludicrously just from the amount of low-skill labor employed by major companies.
Inflation would be bonkers and you can’t raise interest rates too fast or you basically nuke your economy, so how this plays out for the average joe is anyone’s guess. Fun to think about tho
I can’t for the life of me think that this will be good for them though. Food delivery services are notoriously shitty/slow. If I order a pizza and have to wait for an intendent person to come pick it up and deliver it when ever is convenient for them? Thats not gonna work for me… and I would be loud and boisterous to the company.
In an alternate timeline where restaurants never thought to offer delivery (or regulated against it…since objectively it is kind of strange how we do it now), but did offer takeout, I’d expect private food courier services would have thrived. Especially in denser areas.
Even in an era before DoorDash and internet, it’d be a call-center/concierge style.
But also gig drivers aren’t getting the minimum. Uber and Lyft promise you’ll make the minimum through the ride fares if you work a whole hour. But that doesn’t happen. Many people don’t notice because the pay is distributed across the rides but some have actually done the math with their daily totals. They also just lost a court case about paying mileage, so they not have to reimburse mileage they weren’t doing before.
With a business climate like that it’s no wonder everyone else is jettisoning delivery drivers. The rideshare companies are getting away with murder by comparison.