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I unfortunately disagree with this. Restaurants operate on thin margins. They are currently closed so all of the food, etc is likely waste. On top of that they
by wonderwonder 7y ago
I unfortunately disagree with this. Restaurants operate on thin margins. They are currently closed so all of the food, etc is likely waste. On top of that they are going to be months in arrears on rent and fees to their vendors. Many of those vendors are going to be months in arrears to their own employees, vendors etc. In order to open back up, pay rent / vendors and employees they are going to each need a large cash infusion. They cant just open, and hope that customers come back, if they do that they wont be able to pay the employees on payday. Many of them are likely done for good. Not to say other things wont replace them.
Regarding most of these people being hourly, I think that is not correct. Lots are but there are tons of startups, unicorns and publicly traded companies laying off 20+ % of their employees. Travel companies are slashing their backend salaried work force. Many of these companies are going to learn they can operate painfully but still operate with a greatly reduced workforce, boosting the bottom line and increasing share holder value. The remaining employees will be tasked to do work previously done by several employees and will not receive additional compensation for it.
On top of that, until we have a vaccine, many people are simply not going to go out and spend money in public.
I appreciate your optimism though and very much hope you are right. I could be completely wrong though, stock market seems to think I am. Every 5 million people laid off is a 5% rally on the S&P.
Personal opinion: We have tilted business too far towards 'share holder value' and C-suite compensation and away from treating employees like real people with lives. The cycle will continue until this changes. We are berating individuals for not having savings but giving these massive corporations a pass and massive bailout. I think we need to fundamentally change what it means to be a publicly traded company in this country.
Opinion note 2: A monthly efficient, meaningful and importantly, universal government injection of cash into households for the next several months could spur a massive recovery and is likely the best solution.
- _curious_ 7y ago"I think we need to fundamentally change what it means to be a publicly traded company in this country." What would you change?
- wonderwonder 7y agoRequire a % of stocks be distributed to employees. Allow them to vote as a shareholder block. Limit C-suite pay to a multiple of employee pay. Eliminate golden parachutes. Tie C-Suite compensation to some metric measuring employee quality of life.