5 ms·
I'm starting to believe that a fixing inequality will help the most. A $20 minimum wage and 70% tax rates on those earning more than $50k will end a lot problem
by rb808 7y ago
I'm starting to believe that a fixing inequality will help the most. A $20 minimum wage and 70% tax rates on those earning more than $50k will end a lot problems. A job in SF, NYC will not look so great. People will move back to the mid-West because it'll make financial sense. Fewer immigrants would move to these high priced cities, the demand bubble would pop, and entrepreneurs will start companies all over the world instead of the Bay Area.
- imtringued 7y agoActually this is an interesting solution. Half the problem is that the low paid workers basically have no bargaining power. In Switzerland the salaries of low skilled workers tend to grow in lockstep with the salaries of the high skilled workers. If the minimum wage was increased to the point that even low paid workers could afford to rent in SF then it will succeed or those jobs will be lost and SF collapses because all the cashiers, waiters, janitors and teachers have left the city.
- greedo 7y ago70% tax rates on $50K? Total non-starter, even in CA. No chance of the Federal tax rate hitting that high, so CA State tax would have to jump up to 45%? Good luck getting that passed in the Legislature. Thinking that inequality can be solved by taxing the rich ignores history, as well as the relationship between correlation and causation. Just because tax rates in the past were higher doesn't mean they were the cause of the lower inequality rates. Oh, and it already makes financial sense to live in the Midwest. The problem is that many don't make the majority of decisions with their wallets.