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In high cost of living countries, a business needs to make substantially more than its base costs to continue to operate. Paying living wages is a challenge ev

In high cost of living countries, a business needs to make substantially more than its base costs to continue to operate. Paying living wages is a challenge every startup needs to consider if it wants to scale past a meager existence for its bootstrapped founder. Startups thrive in low cost of living areas. You see cycles of cheap land -> innovative businesses -> concentration of talent -> economic boom -> expensive land -> globally uncompetitive businesses -> whole industry collapses. This is what happened to the automotive industry in the mid-west.

mistrial9 4y ago
you are right and I am seeing that -- however please consider the difference between England-style factory automation with economic booms, versus Florence Italy style high-skill, high value artisans. Near San Francisco and other places historically, the demand for very high value arts and crafts was closer to the latter. Land was never cheap here post-Spanish era.
schnevets 4y ago
We see rent as a massive expense for this innovation, but that isn't an inevitability. Consolidated landlords cannot recognize certain advantages that "Ma and Pa" owners will recognize like consistent (albeit lower) payments, tenants who are respectful of the building and grounds, or the fun of supporting a cool business. Compare that to a place like Japan where the post-war distribution of land and smart zoning continues to cultivate a vibrant local economy, or venerable Italian cities where homes and businesses remain for centuries. I don't condone decommodification of real estate or other acts of heavy-handed socialism, but there are laws that play against the "little guy" that must be repealed. Admittedly, every approach (including the Japan and Italy examples) has pros and cons, but many of us forget that there are alternatives out there.

mistrial9 4y ago

you are right and I am seeing that -- however please consider the difference between England-style factory automation with economic booms, versus Florence Italy style high-skill, high value artisans. Near San Francisco and other places historically, the demand for very high value arts and crafts was closer to the latter. Land was never cheap here post-Spanish era.

schnevets 4y ago

We see rent as a massive expense for this innovation, but that isn't an inevitability. Consolidated landlords cannot recognize certain advantages that "Ma and Pa" owners will recognize like consistent (albeit lower) payments, tenants who are respectful of the building and grounds, or the fun of supporting a cool business. Compare that to a place like Japan where the post-war distribution of land and smart zoning continues to cultivate a vibrant local economy, or venerable Italian cities where homes and businesses remain for centuries. I don't condone decommodification of real estate or other acts of heavy-handed socialism, but there are laws that play against the "little guy" that must be repealed. Admittedly, every approach (including the Japan and Italy examples) has pros and cons, but many of us forget that there are alternatives out there.