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How is killing off many small businesses "good for the country".
I am guessing that the high wages will be causing high prices that is certainly turning off / deterring many from going out as much, especially for fast food that is as much as a sit down meal.
If you have to pay your employees a low wage to survive your business model stinks. Why don't these businesses do what you are telling workers to do and pull themselves up by their bootstraps? Of curse not because in your mind businesses can do not wrong and are always right.
If you have to pay your employees a low wage to survive your business model stinks. Why don't these businesses do what you are telling workers to do and pull themselves up by their bootstraps? Of curse not because in your mind businesses can do not wrong and are always right.
If a business is that marginal, I really question how much it benefits the community. I think the argument would be that if it is paying below the market wage rate though that it is unlikely to last as a business. Our state recruits businesses to come and set up shop here. However, there have been situations where they have learned the wages they pay are low and in those situations they will generally cease recruitment efforts.
I don't really think that you can successfully fight the market. If wages in a particular industry are too high, the business won't last. If they are too low, they will be forced to raise wages to compete with other businesses. My support of a minimum wage is really designed just to keep the worst people with the most marginal businesses out there from being able to take advantage of the less intelligent and ignorant. Minimum wages should not be above market wages.
If a business is that marginal, I really question how much it benefits the community. I think the argument would be that if it is paying below the market wage rate though that it is unlikely to last as a business. Our state recruits businesses to come and set up shop here. However, there have been situations where they have learned the wages they pay are low and in those situations they will generally cease recruitment efforts.
What's the secret that allows businesses to pay less than the market rate?
Quote:
I don't really think that you can successfully fight the market. If wages in a particular industry are too high, the business won't last. If they are too low, they will be forced to raise wages to compete with other businesses. My support of a minimum wage is really designed just to keep the worst people with the most marginal businesses out there from being able to take advantage of the less intelligent and ignorant. Minimum wages should not be above market wages.
How is a price floor effective if it's set below equilibrium?
If you have to pay your employees a low wage to survive your business model stinks. Why don't these businesses do what you are telling workers to do and pull themselves up by their bootstraps? Of curse not because in your mind businesses can do not wrong and are always right.
Not addressing the point - how is "killing off businesses" good for anyone. And a higher min wage will hurt more than it helps.
Also should quit attributing things I never said or what you think is "in my mind" - what BS - should keep to what is said, not your bias or opinion.
If you have to pay your employees a low wage to survive your business model stinks.
I guess Uber and Lyft stink.
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Lyft and Uber will stop offering services in Minneapolis on May 1 after the city council overrode the mayor’s veto of a minimum wage for rideshare drivers.
Something tells me those companies will be just fine, but not the thousands of drivers who will soon be unemployed due to minimal wage hikes.
Tragic, if only there was some type of warning that minimal wage hikes lead to unemployment…
Quote:
“Low-skilled workers who would be employable at a low wage become unemployable at an artificially higher wage. And that explains the perverse cruelty of minimum wage laws: it inflicts the greatest harm on the very workers it is allegedly designed to help.” - Economist Thomas Sowell
Something tells me those companies will be just fine, but not the thousands of drivers who will soon be unemployed due to minimal wage hikes.
Tragic, if only there was some type of warning that minimal wage hikes lead to unemployment…
This just looks at these gig workers in the wrong way. They aren't unemployed, this just tells them to go do something else with their time. The whole problem with becoming a gig worker is the uncertainty of the exchange. You start up your car and head out to work and have no idea what you can earn. Why do you do that? Probably because you heard you can make good money. But you really got no information and that's the problem with gig work.
The job market depends on full information. You do this work you get paid this much. Uber and Lyft work hard to conceal as much information as they can. Those who drive with them can't make informed decisions on the exchange and it causes most to drop out or do it very little.
While this effort in Minneapolis may not be the most effective way to do this, it's a way to force more disclosure to drivers. And while Uber and Lyft could afford to go along of course they are fighting it because they'd hate for this to happen elsewhere. Or be forced to be more transparent. In the future, both will be beaten by more transparent platforms. Right now all bids and offers go into their black boxes. In a more transparent market there could be suggested pricing but the participants will work to create true market pricing. And if drivers see real market pricing then everyone will be better off.
If you work for Uber or Lyft you're a contractor. You are free to accept or decline any ride. They don't tell you exactly what you'll get paid, but you can get a vague idea based on the request.
Those companies depend on their generosity of their customers to tip the drivers in order to make the whole thing go. That, and the drivers using their own cars and paying for their own gas and maintenance is how those companies undercut taxi services. Otherwise, there is no difference between of a taxi and an Uber. Currently Uber comes in cheaper than taxis by a decent amount, because they're not paying the drivers an hourly rate, and they're not responsible for any vehicles.
For the customers, they could actually save money because they wouldn't have to tip so much to get a driver to pick them up. The only thing Minneapolis's ordinance hurts is the app company's profits. They are opposing this so other cities don't follow suit.
Uber and Lyft charge you a crap ton of fees for the use of their apps. The driver doesn't see that much of the fare.
The idea that Uber/Lyft can't afford this, however, is absurd. Doordash has an earn by time option that will pay their drivers by the hour for "active" time - meaning on a delivery not waiting for one. Uber can do the same, it'll be fine. Customer fares would go up a bit. I'm interested in how this game of chicken will play out. Minneapolis is a pretty big market to pull out of because these companies are throwing a tantrum about having to comply with the same regulations every business does.
Last edited by redguard57; 03-16-2024 at 01:10 PM..
Wages chasing inflation never works.
Prices can't go down because now they have to support The inflated wages
Paying someone $20/hr to give you a hamburger means you will never see that hamburger decrease but instead become more expensive
I can get lunch at a sit down restaurant for less than what FF charges
And that's why I'm not disturbed by it, if we could find a way to get people to eat something other than fast food we would all be better off. The only time we go now is when one of the grandkids succeeds in begging which isn't very often
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