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Particularly as a lot of that is just keeping up with inflation. Many industries seem to prefer going bankrupt than pay their lowest level employees well.
by nitwit005 4y ago
Particularly as a lot of that is just keeping up with inflation.
Many industries seem to prefer going bankrupt than pay their lowest level employees well.
- Aerroon 4y agoIf entire industries are going bankrupt then it indicates that the service they provide is not economically feasible. The end result is that consumers just have less choice due to reduced services.
- nitwit005 4y agoTo be clear, I mean they could make it work, they just won't do it for cultural reasons. Perfectly happy to pay management and consultants well, but unwilling to even consider it for the rank and file. Some studies on minimum wage increases have compared businesses across state lines, where one state has increased the minimum and the other has not. At least some of the time, the increase appears to benefit businesses, as they had high employee turnover, and hiring does cost money.
- Gigachad 4y agoThe situation is self resolving though. Either they pay more, or they become unable to deliver the service. Since the companies can’t force people to work there, it’s out of their hands.
- supertrope 4y agoOr it’s just a correction following a long boom. Full service, discount pricing, ubiquitous availability, and 10% CAGR in new locations can’t go on forever.
- narrator 4y agoThe fed by raising rates is trying to clean out these low-margin businesses by making them less attractive to investors. This means they will fire workers and stop buying goods which is supposed to bring down inflation. Think about it, in the current environment, the choice becomes: 1. Invest in a low margin business or 2. just call it a day and buy Treasury bills at historically high interest rates and make a guaranteed state tax free return without having to work.