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More accurately, this is much more viable in cities with a big wage gap between the lower class and middle class. The upper class uses different services and th
by PeterisP 4y ago
More accurately, this is much more viable in cities with a big wage gap between the lower class and middle class. The upper class uses different services and there's simply not much of them to make a scalable business; but if a middle-class worker earns 10 times more than a poor worker, that means that service jobs will be much more used than in the West.
Like, almost no Western doctors, lawyers or engineers afford a chauffeur or a full-time domestic servant, but there are areas of the world where that is quite plausible, just as it was in the West hundred+ years ago with minimum wages that were proportionally much lower than now.
- ghaff 4y agoThat's a really good way of putting it. Essentially, there is this whole class of businesses that are fundamentally trying to make services available to (some definition of) middle class consumers who mostly couldn't/wouldn't afford them previously except as an occasional treat or a special case situation. The problem is that technology doesn't make the labor cost cheaper and adds costs of its own.