2 ms·
Where's all this increased consumer spending coming from? This isn't guaranteed and rarely happens, and definitely doesn't go straight back to those businesses.
by manigandham 7y ago
Where's all this increased consumer spending coming from? This isn't guaranteed and rarely happens, and definitely doesn't go straight back to those businesses.
Employees are the biggest cost, and wages when multiplied by benefits and taxes can have an outsized impact over fixed costs like rent. Sure a business might not fire everyone, but it might start removing some shifts or move some employees to part-time instead. These little changes add up.
The greater point is that it's easy to say "the business model is no longer up to date" when it doesn't affect you. It's much different when your wages go to 0 instead because of other people who think they know better than you about what you need.