3 ms·
That's easy: this doesn't happen in a vacuum of supply/demand. Not everything is a perfectly efficient market. A daycare, like any other business has costs ass
by shawnb576 8y ago
That's easy: this doesn't happen in a vacuum of supply/demand. Not everything is a perfectly efficient market.
A daycare, like any other business has costs associated with rent (which has gone up a LOT) and employees (who are taking care of my kids and should be paid a decent living wage in a rising-cost-of-living environment).
What evidence do you have that they are price gouging rather than simply trying to maintain a working business. Why do you think adding more daycares would significantly change this dynamic?
- manfredo 8y agoIf there are 500 daycare slots and 2,000 people that need daycare then only the wealthiest 25% are going to be able to afford it. If this gets expanded to 1,500 slots then 75% can get daycare. That's how scarcity drives up supply. If the demand for something exceeds it's availability then its price rises. Are there operational costs that make operating a daycare at lower than $X per child per day unprofitable? Maybe. If it's rent then the discussion shifts to the supply of real estate. If it's wages then it's about the accessibility of labor.