2 ms·
You can't just wave away economics like that. The problem with restaurants is that they are in a highly crowded and competitive business. If you give them a tax
by gizmo686 12y ago
You can't just wave away economics like that. The problem with restaurants is that they are in a highly crowded and competitive business. If you give them a tax break, they would simply pass the savings onto the consumer.
- joshu 12y agoYeah. I think the issue is that the landlord is incentivized to extract maximum cash for the spot, which may be better for some other kind of venture (eg bank branch or whatever) which makes the restaurant's existence close to untenable in some locations. Public good or local quality or whatever does not factor in in any way. There are probably better ways to do this than what I suggested.
- gizmo686 12y agoEven if the landlords charged no rent, I would not expect to see profits increase significantly, rather I would expect prices to lower (and additional restaurants to open). Of course, if only a small(ish) number of restaurants get free rent, their profits would go up.
- joshu 12y agoFair enough. Consider my problem statement (rent extraction) rather than my poor solutions.