[HN Gopher] Labor shortage or terrible jobs?
       ___________________________________________________________________
        
       Labor shortage or terrible jobs?
        
       Author : RuffleGordon
       Score  : 169 points
       Date   : 2021-04-30 14:51 UTC (8 hours ago)
        
 (HTM) web link (annehelen.substack.com)
 (TXT) w3m dump (annehelen.substack.com)
        
       | stakkur wrote:
       | _" But what if, she writes, those benefits are actually providing
       | a safety net to American workers so that they do not need to take
       | terrible jobs for low wages at terrible companies under terrible
       | management?"_
       | 
       | Exactly this. A significant part of American business depends on
       | cheap, low-overhead labor. America outsources a lot of that
       | overseas (both white and blue collar), but fundamentally depends
       | on filling shitty jobs and providing as few benefits as possible.
        
       | rossdavidh wrote:
       | Well, there's a straightforward (I don't say easy) way to fix
       | this: you require a high enough minimum wage (and healthcare, and
       | sick leave, and etc.). It's not like the restaurant owner has the
       | option of just deciding to pay twice or three times the labor
       | costs, and trust that their customers will be happy to cover the
       | difference, if their competitors don't have to do the same.
       | 
       | Because, those restaurant (and retail and etc.) business owners
       | are mostly not the ones making big money. Restaurants, in
       | particular, are horribly low margin.
       | 
       | The end result of getting rid of "terrible" jobs, is that
       | everything at the restaurant costs 2-3x as much, and so on at the
       | many other businesses (agriculture?) which rely on cheap labor.
       | Which means all those people in professional class jobs (e.g.
       | programmers) will find that their salary doesn't go nearly as far
       | as it used to.
       | 
       | Personally, I'm ok with that, I think it's the right thing to do.
       | But it's not like it's the small business owners that are
       | standing in the way of it; they cannot pay higher wages if their
       | competition is not, so it has to be mandated. What's standing in
       | the way of it is that this would be, at least temporarily, quite
       | inflationary, and we have a professional class that is accustomed
       | to not having to pay much for anything except houses.
        
         | toast0 wrote:
         | Tying healthcare insurance to employment isn't really the
         | direction we want to be going.
         | 
         | When the individual market was terrible, it made sense to push
         | employers to buy it for their workers, because you got better
         | coverage for less money that way.
         | 
         | Now the state marketplaces are at least mediocre; coverage and
         | costs are similar to what you might get as a small or mid sized
         | employer. We should be pushing people towards marketplace
         | plans, and not trying to continue the employer plan model.
        
           | danaris wrote:
           | That seems to be making quite a lot of assumptions--first,
           | that even in the better states, costs to the employee are
           | similar if they choose to get insurance individually rather
           | than through their employer. Even assuming that the cost _to
           | the employer_ is similar to the cost I would have to pay out-
           | of-pocket to get insurance on the state marketplace, which is
           | not a safe assumption, just because I choose to do that doesn
           | 't mean my employer suddenly decides to give me all the extra
           | money they _would_ have paid for my health insurance in my
           | paycheck.
           | 
           | Even if all that were true, it would only be in the better
           | states. There is massive variation between the states on
           | this, and some have (last I knew) truly abominable plans as
           | the only real options.
           | 
           | No; what we need to be pushing towards is single-payer health
           | care, the way nearly every other civilized nation on earth
           | does it. The market-based system we have is a travesty that
           | literally kills people in order to further enrich the richest
           | among us.
        
         | indigochill wrote:
         | Maybe I'm naive, but this seems to have some significant
         | problems:
         | 
         | 1. Yes, everything costs 2x more for professional-class people,
         | but also for working-class people. The numbers might get
         | bigger, but the impact for those in the position to consider
         | these terrible jobs is net nil.
         | 
         | 2. For anything that doesn't require physical presence, the
         | more you raise minimum domestic labor cost, the more attractive
         | foreign labor looks, so you're also driving outsourcing.
        
           | rossdavidh wrote:
           | You would absolutely have to back away from free-trade with
           | low-wage countries for this, but in the restaurant/retail
           | side of things it's not as big of a consideration, because
           | not many people cross borders to do that in a country as big
           | as the U.S. But for many industries it is absolutely a
           | consideration (e.g. agriculture).
        
         | Clubber wrote:
         | "According to "Papa" John Schnatter, the cost of providing
         | health insurance for all of his pizza chain's uninsured, full-
         | time employees comes out to about 14 cents on a large pizza."
         | 
         | And this is the reason he gave for not supporting ACA. $0.14 a
         | pizza. To this day, I struggle to understand the psychology
         | behind it.
        
           | paulpauper wrote:
           | but that is not a fixed cost though, although it is small
           | relative to the price of a pizza
        
         | cosmodisk wrote:
         | I think we should be going that direction,where a meal in a
         | simple place is expensive enough to support normal wages with
         | benefits and whatnot. Because right now, whenever someone
         | brings up an argument that people don't get paid adequately,
         | there's always the same 'but but the customer won't pay'. We
         | all seem to love to have cheap meals, cheap uber drivers and
         | cheap cleaners, while at the same time expensive office
         | workers, expensive lawyers and doctors. It doesn't need to be
         | so extreme on either side.
        
           | rossdavidh wrote:
           | I agree.
        
         | jolux wrote:
         | >It's not like the restaurant owner has the option of just
         | deciding to pay twice or three times the labor costs, and trust
         | that their customers will be happy to cover the difference, if
         | their competitors don't have to do the same.
         | 
         | This feels a bit backwards. We don't know that their
         | competitors _aren't_ already paying more, we only know that
         | some people can't seem to get labor at the price they were
         | paying before. I think the numbers here are currently
         | inconclusive, but I conjecture that what we're seeing is small
         | business owners losing labor monopsonies that they had come to
         | rely on, and consequently a more competitive labor market. Of
         | course competition causes upward pressure on prices, that's the
         | whole point.
         | 
         | This is tangential but I think America has been too scared of
         | inflation for too long. There's nothing wrong with a bit of
         | inflation, especially if it means we can get closer to full
         | employment. We haven't even been meeting the fed's (very low)
         | target for quite a while.
        
           | cratermoon wrote:
           | > I think America has been too scared of inflation for too
           | long
           | 
           | This is true! The Federal Reserve, since the Carter
           | administration, has acted like even the slightest bit of
           | inflation is impending doom.
        
             | specialist wrote:
             | I've concluded that over steer (over correction) is the
             | norm.
             | 
             | My hunch is one big cause is the mismatch of time scales
             | between tenure (employment) and policy outcomes. Meaning
             | that most policy and decision makers have moved on to new
             | roles and jobs before the consequences of their decisions
             | become clear. So very little learning can happen.
        
               | [deleted]
        
             | jolux wrote:
             | Blame the Phillips curve ;)
        
             | vl wrote:
             | Feds tried to induce inflation for the last 20 years, it's
             | good for them since they can just print more money. They
             | largely failed to do so since dollar is so well propped by
             | international demand.
        
             | jfengel wrote:
             | Remarkably, since the tail end of the Bush administration,
             | it's the opposite: the Fed has desperately tried to get
             | inflation up to its 2% target level, and mostly missing.
             | 
             | The reasons are debatable, but I'd argue that it's mostly
             | because the mechanisms they're using end up inflating the
             | stock market instead of consumer goods.
             | 
             | There are economists terrified of any inflation, but it's
             | an attitude that's more popular with some ideologues than
             | with mainstream economists. You hear a lot about them on TV
             | and the Internet, but not nearly as much in real economics
             | talks. Those ideologues punch above their weight in
             | Congress, but not at the Fed.
             | 
             | The Fed governors aim for a small, controlled level of
             | inflation. Mostly that's to prevent people from just
             | sitting on their money: money stuffed into a mattress
             | doesn't grow the economy. Money in bank accounts isn't much
             | better, since they can be withdrawn at any time. So a
             | little inflation nudges people to either spend their money
             | or invest it. Such is the theory.
        
               | medvezhenok wrote:
               | The reason is quite clear - the Fed cannot transfer money
               | effectively to the poor/middle class; it's fiscal policy
               | that can do that (and labor unions to some degree, which
               | were gutted in the 80s).
               | 
               | Inflation doesn't happen when you give more to the people
               | that don't consume (and sustained inflation only happens
               | when there is an actual shortage of some good, and
               | arguably we have overcapacity for everything today so
               | inflation will only happen under either a commodity price
               | shock or complete breakdown of supply lines (transitory
               | inflation can happen like it is now - from the COVID
               | shock))
        
               | jfengel wrote:
               | That's absolutely correct, but it has been remarkable the
               | way there's been _no_ money flowing to the poor and
               | middle class.
               | 
               | Supply-side economics clearly doesn't work, but it wasn't
               | totally insane. If money was pumped into corporations
               | you'd expect at least some of it to turn into more
               | conventional demand. Buy a private jet or a yacht (built
               | by workers and maintained by more workers), or start a
               | company that pays wages, or something.
               | 
               | Instead, all of the money just gets shuffled among each
               | other. It's not just that trickle-down doesn't work; it's
               | that it doesn't seem to trickle _at all_. Even to non-
               | Chicago economists that 's a little surprising. Chicago
               | School turns out to be more than just incorrect, but
               | utterly at odds with reality. Rich people simply don't
               | behave the way they imagine they do.
               | 
               | About the closest it comes is messing with the real
               | estate market -- mostly in the form of pricing lower-
               | class renters out. That benefitted the existing
               | homeowners, and maybe that's helped stem middle class
               | decline a tiny bit, but there are too many other forces
               | working against them. Instead, it just trickles more
               | money back up.
               | 
               | It'll be interesting to see what happens as COVID eases
               | off. That's a very unusual kind of shock, and I'm
               | surprised it hasn't been even more economically
               | disastrous than it is. Part of it is that the government
               | has done a weak form of the right thing, pumping money
               | directly to consumers. If not for that we'd have seen a
               | deflationary spiral of truly catastrophic proportions.
        
               | medvezhenok wrote:
               | "Despite the cacophony of complaints about "ruinous"
               | budget deficits and "excessive" monetary growth, the
               | headline-grabbing double-digit inflations of 1974 and
               | 1979-80 were mainly of the special-factor variety. Only a
               | minor fraction of each inflationary acceleration can be
               | attributed to changes in the baseline rate; the rest came
               | from supply shocks from the food and energy sectors, from
               | mortgage interest rates, and from the end of price
               | controls--a whole host of special one-shot factors. It is
               | precisely this aspect of the recent inflation that this
               | paper seeks to document. Since the paper focuses on the
               | special factors to the exclusion of the baseline rate, it
               | is worth pointing out at the outset that the two
               | inflations are not really independent. Inflation from
               | special factors can "get into" the baseline rate if it
               | causes an acceleration of wage growth. At this point
               | policymakers face an agonizing choice--the so-called
               | accommodation issue. To the extent that aggregate nominal
               | demand is not expanded to accommodate the higher wages
               | and prices, unemployment and slack capacity will result.
               | There will be a recession. On the other hand, to the
               | extent that aggregate demand is expanded (say, by raising
               | the growth rate of money above previous targets),
               | inflation from the special factor will get built into the
               | baseline rate."
               | 
               | This is the difference between the responses to 2008 and
               | 2020. The first was exactly the first example from the
               | paper, and the second is the latter (expansion of demand
               | capacity).
               | 
               | https://www.nber.org/system/files/chapters/c11462/c11462.
               | pdf
        
       | prepend wrote:
       | This seems pretty simple to me since the special unemployment
       | insurance is up to $600/week[0] through at least July 31 it's
       | going to be hard to convince someone to work for less than that.
       | 
       | So if it's a choice between $15/hour, steady to not work and
       | $18/hour variable to bus tables or whatnot I'm not surprised that
       | people choose the $15.
       | 
       | I expect this will be different once unemployment goes back to
       | pre-covid and people are forced to make decisions.
       | 
       | Many jobs are terrible, I mean no one wants to be a janitor. So
       | when finances allow me to not have to clean toilets and I can
       | make a similar amount not doing it, any rational person will
       | choose not to.
       | 
       | I'm really surprised that any low wage jobs are able to get folks
       | to come into work right now.
       | 
       | It's odd that the article doesn't bring this up as the
       | opportunity cost aspect seems like the most important factor in
       | the "labor shortage."
       | 
       | [0] https://www.dol.gov/coronavirus/unemployment-insurance
        
         | hh3k0 wrote:
         | > Many jobs are terrible, I mean no one wants to be a janitor.
         | 
         | I honestly fail to see how janitor is a terrible job -- being
         | in charge of keeping a building in shape, doing the repairs,
         | etc.? That seems like a great job to me.
         | 
         | I'd wager most people would have a problem with the pay rather
         | than the job itself.
        
           | prepend wrote:
           | I don't like cleaning toilets, that's the main blocker for
           | me.
           | 
           | Operating that giant floor waxing/buffer machine seems pretty
           | cool though but I would not want to be responsible for
           | cleaning a bathroom.
        
       | lastofthemojito wrote:
       | I'm surprised that the article Kottke links to didn't
       | quote/acknowledge FDR. Maybe the author just came up with
       | 
       | >We should ask ourselves, our communities, and our government: if
       | a business can't pay a living wage, should it be a business?
       | 
       | independently, but it sounds a lot like FDR's [0]:
       | 
       | >It seems to me to be equally plain that no business which
       | depends for existence on paying less than living wages to its
       | workers has any right to continue in this country. By "business"
       | I mean the whole of commerce as well as the whole of industry; by
       | workers I mean all workers, the white collar class as well as the
       | men in overalls; and by living wages I mean more than a bare
       | subsistence level-I mean the wages of decent living.
       | 
       | [0]: http://docs.fdrlibrary.marist.edu/odnirast.html
        
       | recursivedoubts wrote:
       | Maybe one of these days the pro-labor left and the pro-labor
       | right are gonna figure it out, stop taking the bait, and we'll
       | finally get a real revolution.
        
         | kokanator wrote:
         | Revolution is NOT the answer.
         | 
         | Think a bit harder on the problem than to simply cry
         | revolution. Swaths of people die, families are destroyed, the
         | economy is destroyed, the nation becomes vulnerable ( if you
         | still have a nation ). You will have to deal with the problems
         | you created before you ever get the opportunity to work on what
         | you were originally revolting about.
        
           | paulpauper wrote:
           | What about the American Revolution (not that this would work,
           | but some revolutions do work)
        
             | kokanator wrote:
             | I didn't say they don't work. However, most do fail. My
             | point was they come with an extreme cost and in this case
             | you may never get to the resolution you are seeking.
             | Alternative means are much much more likely to be
             | successful.
        
         | mc32 wrote:
         | Everyone knows how to make a revolution. The hard work is the
         | day after the revolution. The same problems will exist. They
         | don't magically go away.
        
           | medium_burrito wrote:
           | Also what are they gonna revolt about? Immigration and
           | automation I can definitely see, but there's nobody but the
           | Yang stumping about this.
           | 
           | And then you have the question of what happens when the A and
           | C arks leave for Mars?
        
         | cratermoon wrote:
         | > pro-labor right
         | 
         | Such a thing does not exist.
        
           | paulpauper wrote:
           | how about socially conservative union workers, for example.
        
             | cratermoon wrote:
             | By "socially conservative" do you mean opposed to
             | reproductive choice, anti-immigration, opposed to LGBTQ+
             | rights, opposed to affirmative action, and those kinds of
             | wedge issues? Kind of the the inverse of libertarian
             | "economically conservative, socially liberal"?
             | 
             | I wonder how much those issues would fade from their
             | consciousness if they weren't constantly fed the lie that
             | their precarious economic status is the fault of
             | immigrants, the cost of social welfare programs, the "gay
             | agenda", the "great replacement" theory, and so forth.
        
           | kokanator wrote:
           | Greed permeates all parties as it is a human characteristic.
           | The point is to create an environment that encourages strong
           | businesses and discourages greed. Left or Right.
           | 
           | Are you talking right business owners or politicians.
           | 
           | If you answer both, how many conservative business owners do
           | you actually know? I know a number of them and they have
           | thriving businesses with well compensated and well covered
           | employees that have worked for their businesses for decades.
        
           | recursivedoubts wrote:
           | lol perfect
        
       | beckingz wrote:
       | The company: Cybersecurity Skills Gap! The job: low pay for
       | unicorn candidates with 30 years DevSecOps on AWS experience.
        
         | [deleted]
        
       | ajb wrote:
       | A similar point was made in Kalecki's 1943 essay:
       | https://mronline.org/2010/05/22/political-aspects-of-full-em...
        
       | honksillet wrote:
       | There are no such things as "jobs americans won't do". It's just
       | you have to compensate people accordingly. With this failing
       | stealth UBI experiment that we are currently engaged in, people
       | aren't willing to work when many of them are getting near 100%
       | the same income not to work. The rest of us are being crushed by
       | inflation.
        
         | boublepop wrote:
         | A system where people get the same to work as not to work is
         | not Universal Basic Income, UBI. Such a system is guaranteed
         | basic income. There's a huge difference.
        
         | dmwallin wrote:
         | It's unfortunately nowhere near a stealth UBI experiment and
         | really just a classic welfare trap, in the vein of so many
         | other government programs. There are many bad incentives in our
         | unemployment system and it was clearly never designed to be a
         | delivery method for long term stimulus.
        
         | paulpauper wrote:
         | But inflaiton is very low. yeah, CPI excludes stuff, but we're
         | a long way from the 70s and 80s.
        
           | inetknght wrote:
           | > _inflaiton is very low_
           | 
           | No it isn't. _My_ rent is up 80% since two years ago. Food
           | costs are up 40%. Healthcare is up 200%. Good news though:
           | fuel costs are about the same!
        
             | imtringued wrote:
             | Aren't you keeping up with the stats? It's the energy
             | prices that are currently shooting up.
             | 
             | https://www.bls.gov/cpi/
        
             | runako wrote:
             | This is not the experience of most Americans. In fact, if
             | these numbers are accurate for you I might suggest you
             | employ a financial planner to help find alternatives.
        
             | loopercal wrote:
             | >My rent is up 80% since two years ago.
             | 
             | There's no major* rental market in the US where this is the
             | case.
             | 
             | * - There could be some oil boom in a 300 person town I
             | don't know about I guess.
        
               | inetknght wrote:
               | Houston, March 2019, my rent renewal was $1500/mo for a
               | 12-month lease or $1500/mo for month-to-month or a new
               | contract. Houston, October 2020, my rent renewal was
               | $1500 for a 15-month lease or $2100/month for month-to-
               | month or a new contract.
               | 
               | Okay so 80% is an exaggeration. 30% isn't.
        
         | solosoyokaze wrote:
         | > _The rest of us are being crushed by inflation._
         | 
         | The top 1% are making more money than ever before. If you're
         | holding assets impacted by inflation, you're doing quite well
         | now.
         | 
         | If we take it as a given that in a modern, humane society no
         | one should starve to death on the street and everyone should
         | have access to the basics of survival, then the answer to the
         | labor "shortage" is simply to shift some of the historically
         | record breaking wealth inequality back down the org chart from
         | the executives to the roles that need filling.
        
           | AdrianB1 wrote:
           | How do you define the basics of survival? In parts of the
           | world people live with 2 hamburgers a day, is that what you
           | propose? Even $15/hour seems huge compared with basics of
           | survival.
           | 
           | Also, there are not enough executives to take from them to
           | give to the poor. You need 100 or 1000 times more for that,
           | so the executives theme is a straw man.
        
             | solosoyokaze wrote:
             | I would define the basics of survival as:
             | 
             | * Basic groceries
             | 
             | * Healthcare
             | 
             | * Housing
             | 
             | I don't think these things are easy to achieve but they
             | seem like obvious goals to societal progress. If not, what
             | are we even progressing towards?
             | 
             | > _Also, there are not enough executives to take from them
             | to give to the poor. You need 100 or 1000 times more for
             | that, so the executives theme is a straw man._
             | 
             | I said if a company wants to fill a role, that they should
             | pull from executive pay. The average CEO gets 70-1 the pay
             | of the average employee. There is absolutely a surplus of
             | capital to pull from to increase worker pay (thus filling
             | the role).
             | 
             | https://www.payscale.com/data-packages/ceo-pay
        
               | AnimalMuppet wrote:
               | I would add transportation and communications to the
               | "basics of survival".
        
       | dang wrote:
       | Url changed from https://kottke.org/21/04/labor-shortage-or-
       | terrible-jobs, which points to this.
        
       | [deleted]
        
       | medium_burrito wrote:
       | This is super exciting and scary- we've basically gone basic
       | income, but with zero planning. We'll see how it turns out.
       | 
       | We're having some price inflation due to supply chain issues.
       | Cost of housing is more interesting... should we go public
       | housing like Signapore, but contract it out to a country that
       | isn't full of morons that cant plan/lawsuit/consult/build infra
       | for a reasonable price?
        
         | paulpauper wrote:
         | The strength of private sector is helping funding and providing
         | this infrastructure , such as Amazon and Walmart, this post
         | scarcity we have.
        
         | brightball wrote:
         | We haven't though. The key to basic income is that it provides
         | a baseline and then you can go to work to earn more money.
         | 
         | With high unemployment pay, you lose that money the moment you
         | go get a job so it creates a disincentive to work.
        
           | phillipcarter wrote:
           | > so it creates a disincentive to work
           | 
           | This framing can make it come off as though the wages were
           | fair to begin with. The consensus seems to be that they were
           | never fair. And people in the US are largely tired of the
           | government giving handouts to businesses over people. It's
           | time for those who reaped disproportional benefits over the
           | past 40 years to eat some costs instead.
        
             | brightball wrote:
             | > This framing can make it come off as though the wages
             | were fair to begin with.
             | 
             | This framing passes the buck for inflation from the
             | government onto businesses that have no control over it
             | whatsoever.
             | 
             | When the money you have buys less and less, the wages
             | suddenly become less and less "fair" without the employer
             | doing anything differently. Who's to say that their
             | business has increased enough to support the higher wage?
             | 
             | This is, IMO, why basic income is _critical_ because it
             | puts the cost of dealing with inflation directly back on
             | the government itself, rather than the small businesses
             | that are constantly framed as paying  "unfair" wages.
             | 
             | If the taxes to support it come from the people at the top
             | who've reaped disproportionate benefits...GREAT. But the
             | small businesses at the bottom struggling to keep their
             | doors open are _not_ the enemy here but they will
             | absolutely be the ones that suffer the most from wage-based
             | legislation that they can 't afford.
             | 
             | And let's not forget that the moment such legislation
             | passes, it just encourages more automation or exporting of
             | jobs to other countries where a fraction of the original
             | wage is somehow "fair".
        
       | jschveibinz wrote:
       | This article unfortunately doesn't address the business side of
       | the problem. Fast food restaurants, or place like "Dale's"
       | mentioned in the article, make very little profit. It is most
       | likely below 10%. Here is an estimate:
       | https://www.restaurant365.com/blog/what-is-the-average-profi....
       | 
       | A 10% profit is very modest. That's not the story of the "fat
       | cats getting rich on the back of the workers" that the article is
       | alluding to.
       | 
       | The problem for the business is that the financial model is set
       | by the fixed or imperative costs, i.e. the cost of rent, the cost
       | of maintaining the capital equipment, the cost of cleaning to
       | meet codes, insurance, etc. The cost of labor, for cooks, wait
       | staff, etc. is often the biggest part of the expense budget for
       | restaurants.
       | 
       | With such a small profit margin, arbitrarily raising everyone's
       | wages is likely going to kill the business. There is no room in
       | the budget. The only choice is to either automate, which will
       | reduce the labor requirements, or raise prices and hope that
       | customers won't just go down the street. But they will, they will
       | go down the street--until everyone's prices go up and there is
       | nowhere else to go. And all of this is free market capitalism at
       | work. It is a continuous process of reinvention.
       | 
       | In short, I'm not saying that higher wages aren't necessary, I'm
       | just saying that both sides of the equation need to be examined,
       | i.e. the plight of the worker AND the plight of the business. And
       | we need to understand that things will probably get ugly before
       | they get better. Because that's how capitalism and free market
       | economies work.
       | 
       | But watch out for technology and automation...that is the part of
       | the equation that has been "solving" the labor problem for some
       | time now...
        
         | fshbbdssbbgdd wrote:
         | I think the effects of price stickiness (on goods and labor)
         | aren't being adequately considered in these discussions. Yes,
         | these restaurants could raise their wages to compete with
         | unemployment, and many have. They'll also need to raise their
         | prices, which they have leeway to do, because everyone is
         | facing the same costs.
         | 
         | The problem occurs in a few months when the bonus unemployment
         | runs out. Then there will be millions more people looking for
         | work. At that point, expanding employers will be able to hire
         | at lower wages again. They'll also be able to offer goods at
         | lower prices. Employers who stepped up to pay higher wages
         | won't be able to compete. They'll need to cut prices and cut
         | wages or lay people off. That will be painful, which makes
         | holding out until wages lower more attractive.
         | 
         | Employers can get around this by offering signing bonuses
         | instead of higher wages, but they need to be large to compete
         | with unemployment checks, and it may not make sense to do that
         | for a few months of work.
         | 
         | These conditions may present a unique opportunity for
         | policymakers to increase employment by raising the minimum
         | wage.
        
           | [deleted]
        
           | runako wrote:
           | > The problem occurs in a few months when the bonus
           | unemployment runs out. Then there will be millions more
           | people looking for work.
           | 
           | Maybe this won't happen? Unemployment is officially at 6%.
           | Better-capitalized firms have hired a ton of people over the
           | last year. It's possible that marginal businesses like the
           | weaker local restaurants mentioned in this thread will just
           | have to adapt.
           | 
           | Besides, given that their jobs are apparently so crappy that
           | they are losing employees to the likes of McDonalds,
           | certainly they have high turnover. If a labor glut happens,
           | they can just lower wages and deal with the resulting
           | turnover, which they already know how to handle.
        
         | losteric wrote:
         | Real estate prices are also part of the problem, especially in
         | urban cores... some Seattle and SF rents are just stupid, to
         | say nothing of NYC
        
           | robocat wrote:
           | Real estate prices and rent are driven by how much people can
           | only just afford it.
           | 
           | If people earn more, they can afford a bigger mortgage, so
           | house prices rise.
        
         | fma wrote:
         | Yep - which is the appeal Universal Basic Income as Andrew Yang
         | proposes...automation is inevitable, have it work for the
         | people rather than increasing profits.
        
           | madengr wrote:
           | Or stop producing as many people.
        
         | ericbarrett wrote:
         | What about franchise fees? Independent fast food restaurants
         | basically don't exist in the U.S. anymore. An individual
         | McDonalds may be scraping the boundary of profitability, but
         | corporate had a net income of $1.5B last quarter[0], or about
         | $7,500 _per employee per quarter_ [1]. That's net income, not
         | revenue.
         | 
         | [0]
         | https://corporate.mcdonalds.com/content/dam/gwscorp/assets/i...
         | 
         | [1]
         | https://www.macrotrends.net/stocks/charts/MCD/mcdonalds/numb...
        
           | simfree wrote:
           | Dicks, Burgerville (mostly unionized), Burgermaster, In N Out
           | and other regional chains exist, along with a plethora of
           | single location independent fast food restaurants.
        
             | ericbarrett wrote:
             | All those regional chains you mentioned pay significantly
             | better than McDonalds, YUM, etc. as well.
        
         | maybelsyrup wrote:
         | > This article unfortunately doesn't address the business side
         | of the problem.
         | 
         | Good! I've been hearing about "the business side of the
         | problem" my entire life -- lectured sternly about it, in many
         | cases. All while few of the Adults and Experts - people with
         | Real Power, in other words - dare even mention some of the
         | topics laid out in the link.
         | 
         | > I'm just saying that both sides of the equation need to be
         | examined, i.e. the plight of the worker AND the plight of the
         | business.
         | 
         | There is no "plight of the business". There's a business that's
         | making money, losing it, or breaking even. The people working
         | there may feel the consequences, but a business cannot
         | "suffer".
        
           | smabie wrote:
           | plight: "a dangerous, difficult, or otherwise unfortunate
           | situation."
           | 
           | Pretty sure a business can have plight.
        
             | pupdogg wrote:
             | Good point, I can think of 1 right away: Toys-R-Us. Miss
             | having them around!
        
             | maybelsyrup wrote:
             | It was hyperbolic, yes, but only a little, I think. The
             | point I was making is that we've drunk a lot of koolaid
             | about corporations being legal persons, as having rights,
             | etc., such that no one bats an eye at anthropomorphisms
             | like "the suffering of a company". My claim is that a)
             | those words in that context are anthropomorphisms,
             | metaphors, and b) that I don't think we've had much of a
             | conversation about the koolaid I'm alluding to. (Outside of
             | wealthy educated elites like ourselves, I mean.)
        
             | ForHackernews wrote:
             | Maybe we're getting a little philosophical here, but I
             | don't believe inanimate entities can experience
             | "difficulty" or "misfortune".
             | 
             | Would you say that a rock suffers "misfortune" if it
             | topples off a cliff into the sea? Is it "difficult" for a
             | glacier to maintain its integrity in the face of global
             | warming? Is my car unfortunate to have been scratched in a
             | parking lot? (OK, I do believe that last one, but I'm
             | anthropomorphising my car to talk about my own human
             | misfortune)
        
               | hervature wrote:
               | Definitely philosophical. If we can use statements like
               | "a business had a bad quarter" and "a business had a good
               | quarter" and understand that these mean that the
               | financial statements were negative/positive. It isn't a
               | stretch to say something like "a business has had 10
               | straight bad quarters" is a plight considering a business
               | can cease to exist.
        
               | FFRefresh wrote:
               | Is a group of people an inanimate entity to you? Are
               | there only certain types of groups of people that you
               | think are an animate entity?
        
               | ForHackernews wrote:
               | If you want to get really pedantic about it, a company is
               | not a "group of people": a company is a particular legal
               | structure for organising a profit-making enterprise. So
               | yes, it is an inanimate entity.
               | 
               | When we say things like "that Lions football team
               | suffered a crushing defeat", we're engaging in metonymy
               | -- referring to the suffering of _the members of the
               | team_ but speaking metaphorically about  "the team".
        
               | FFRefresh wrote:
               | We'll have to agree to disagree here. I don't think
               | whatever arbitrary legal structure there is around a
               | group of people somehow makes the organization not human.
               | 
               | For example, I think it's perfectly normalized to say
               | "that Detroit Lions team suffered a crushing defeat",
               | even though the Detroit Lions are a profit-making
               | enterprise.
        
           | conanbatt wrote:
           | If a business closes, lots of people lose employment +
           | business owners become more employment competition.
           | Increasing unemployment wrecks wages.
           | 
           | It is also not free to give unemployment benefits, it
           | requires higher taxation which moves the sustainability bar
           | higher and more businesses close, etc etc.
        
             | pnutjam wrote:
             | You know how people avoid being impacted by a business
             | going bankrupt? They don't take jobs there.
             | 
             | Jobs at more stable places are available and people will
             | take them. The businesses need to fail or be sold.
        
           | judge2020 wrote:
           | 'suffering' for a business is just code for being on a path
           | _towards_ the workers suffering the consequences of no
           | profit. That might mean not paying shareholders dividends and
           | the company 's share price losing value, but not all
           | companies are public or pay dividends. If the money runs out,
           | suddenly the business can't pay rent or pay the workers and
           | thus goes bankrupt. No, the business's feelings aren't being
           | hurt and it's not taking any physical bruises.
        
           | ozim wrote:
           | Imagine scenario where you have $100k and you can open a
           | small restaurant, create jobs, maybe not best jobs but still
           | some people will be putting food on the table with your help,
           | some students will pay for their collage.
           | 
           | But you count the costs and it turns out you will break even
           | in 50 years or if anything goes bad never, like, one bad hire
           | will drown you.
           | 
           | You look at Google, Apple, Facebook stocks ... there is
           | always a risk but no one got fired for buying IBM right? If
           | you put your money in that stocks you don't have to worry
           | about bad employees, sanitary inspections, paying rent, bad
           | customers.
           | 
           | That is what those Adults and Experts are trying to tell you,
           | local business is not some "magic" that makes money or loses
           | it. Behind every local business with shitty jobs there are
           | people, don't make every business equal to faceless Facebook,
           | Google or Apple. Your local pizza shop has an owner who is as
           | much an employee as his staff.
        
             | ep103 wrote:
             | https://academictimes.com/economic-news-reporting-suffers-
             | fr...
             | 
             | No. News sources are focusing on business instead of
             | labor's issues, because news statistically favors business
             | interests, not labor's.
             | 
             | If your hypothetical business owner is unable to start a
             | business without paying a reasonable wage, then that
             | business should not exist. And your hypothetical business
             | owner should invest in Apple, Facebook, or otherwise.
             | 
             | If this causes less business entrepreneurship, then so be
             | it. A business that cannot pay employees is not a business
             | that adds value to society, and nothing of value is lost.
             | This is a fundamental tenet of capitalism, the same way we
             | say that businesses that cannot sell their product also
             | deserve to fail.
        
         | ManBlanket wrote:
         | The tone of this article also sounded like she was spitting it
         | through clenched teeth, which I found to be incredibly
         | distracting and defeating to the point the author was
         | attempting to make. Was the point small business owners at
         | establishments like Dales are facing troubles because they're
         | fat-cat capitalist Trumpian Covid deniers whose problems aren't
         | valid as such? That's what it sounded like. I look forward to
         | when we can have conversations about topics like economics
         | without hyperbolic intolerance for outsiders serving an
         | ultimately unproductive narrative that has been driven into the
         | ground.
         | 
         | I live in Missoula. I am a regular customer of Black Cat Bakery
         | and I can see them struggling. I will tell you this article
         | largely ignores probably the biggest problem faced by laborers
         | in Missoula at the moment. This city is amid a dire housing
         | shortage, expedited by lack of new construction and a migration
         | of buyers from more lucrative economies. It is truly a seller's
         | dream market and as such the availability of rentals has fallen
         | through the floor. You'd be lucky to find a 1 bedroom right
         | now.
         | 
         | My wife and I bought a home here a little over a year ago and
         | were fortunate to find the nut who, "didn't need a realtor,
         | what with craigslist." Before then we had been outbid 5 times
         | previously, during which we offered up to 30k above the asking
         | price. Frankly, we wouldn't live here if we didn't get lucky.
         | Our experiences weren't unique at the time and it has only
         | gotten worse. I regularly hear of houses selling for 50K over
         | listing price to people buying sight-unseen.
         | 
         | Frankly I don't care what the owners of Dales or Black Cat
         | Bakery think about Covid or whether they voted for Trump. I
         | really, sincerely, don't care. I only hope for the best for
         | their business and their employees. I know what it's like to
         | struggle here, I did for years and I still would be if not for
         | dumb luck and a bit of privilege. The problems these people
         | face are complicated and difficult to solve. I can only hope
         | people will come to understand if we truly care about solving
         | problems, then we have to put down the tribalism and
         | intolerance for those with different views and focus on the
         | matter at hand.
        
         | throwawaygh wrote:
         | _> But they will, they will go down the street_
         | 
         | But... why? To save a couple bucks on a burger? This is a
         | serious question.
         | 
         | Is this really how consumer behavior works in the restaurant
         | industry? Restaurant food _isn 't_ actually a commodity. A
         | burger from one place can be quite different from a burger at
         | another. Even at the low end -- I much prefer McD's to the
         | other fast food joints. Atmospheres can be very different as
         | well, even at the low end. Etc.
         | 
         | This is not at all how I behave. I have two local bars. I like
         | both way more than all the other bars. I have one local brunch
         | place I like way more than all the other brunch places. All 3
         | places can & have increased prices. In one case substantially.
         | I go anyways.
         | 
         | Granted, I have more expendable income than the average
         | American. But this is even how I behaved when I was on a pretty
         | tight budget during grad school -- a few regular places and I
         | went as much as I could within my budget.
         | 
         | Maybe I'm just a weirdo?
        
           | djbebs wrote:
           | Price changes do work...
        
           | lotsofpulp wrote:
           | > Maybe I'm just a weirdo?
           | 
           | Yes. The data clearly shows the vast majority of the
           | restaurant business be a low margin, high risk venture. That
           | must mean a majority of the customers are very price
           | sensitive.
           | 
           | I can easily afford to pay double and triple what most
           | restaurants charge today. But I'm not going to pay it because
           | I can easily make a meal at home of better quality for less,
           | just have to add in my time and energy.
           | 
           | Moreover, I don't trust restaurants to not cut corners most
           | of the time due to the volatility of their business.
           | 
           | But that's all personal preference. I suspect most people
           | just have limited budgets, so increased prices means less
           | times they go out.
        
             | throwawaygh wrote:
             | _> The data clearly shows the vast majority of the
             | restaurant business be a low margin, high risk venture_
             | 
             | I think what I was suggesting was that perhaps restaurants
             | as an industry have systematically under-estimated
             | consumers' willingness to pay.
             | 
             | You see this in software pricing discussions a lot,
             | actually: small shops that leave _a lot_ of money on the
             | table by not charging enough. Is it really so crazy to
             | imagine that restaurants might be doing the same thing?
             | 
             |  _> That must mean a majority of the customers are very
             | price sensitive._
             | 
             | It's this "must" that is always asserted but... I think
             | might not be as true as we assume?
             | 
             | I am not a restaurant owner, so what do I know.
        
               | lotsofpulp wrote:
               | Restaurant owners aren't leaving money on the table
               | because they're charitable people. There's so many
               | restaurant openings and closings for so many decades that
               | I think it's a pretty good indicator of their price
               | dynamics.
               | 
               | Software is B2B many times and has efficiencies of scale
               | that restaurants don't.
        
               | throwawaygh wrote:
               | I'm not suggesting thy are charitable. I'm only
               | suggesting that they are not omniscient.
               | 
               |  _> There's so many restaurant openings and closings for
               | so many decades that I think it's a pretty good indicator
               | of their price dynamics._
               | 
               | This may well be true.
               | 
               | But I mean, if this were the case, a common failure mode
               | for restaurants would be full tables right up until bust,
               | right? Low prices due to unprofitable margins would mean
               | lots of demand. Losing money on every head, but lots of
               | heads.
               | 
               | But, IME, in my area, restaurants that fail in the first
               | year or two do not fail in that modality. They usually
               | have some of the lowest prices, but empty seats none-the-
               | less. Because the food isn't good, or the menu is weird,
               | or they don't do marketing right, or the location is
               | wrong, or a million other things. But in my area at least
               | I basically never see restaurants will full tables fail.
        
               | TheOtherHobbes wrote:
               | People often open restaurants as a hobby project. They
               | like the idea of running a restaurant, maybe because they
               | like the idea of being sociable or cooking for other
               | people.
               | 
               | But they literally have no idea how to run a _profitable_
               | restaurant. Often they know next to nothing about
               | business in general, and have no idea how to estimate
               | costs /profits.
               | 
               | Plenty of other business types operate on a similar semi-
               | amateur basis, including book shops, record stores,
               | independent garages, hairdressers and beauty parlors,
               | craft and art shops, realtors, and others.
               | 
               | Sometimes they get lucky, or they're started by people
               | who have actual business talent and can deal with
               | challenges creatively.
               | 
               | But often they don't, which is why they fail.
               | 
               | Many also pay very poorly. Both super-professional and
               | super-unprofessional owners can nickel-and-dime their
               | employees, but for different reasons.
               | 
               | Failure is bad because these kinds of small businesses
               | often add life to a community. But there's little or no
               | support or training for them. It wouldn't take much to
               | help them avoid the more obvious mistakes, give them more
               | stability, and turn them into more of a local and
               | national resource.
        
         | nitwit005 wrote:
         | > With such a small profit margin, arbitrarily raising
         | everyone's wages is likely going to kill the business.
         | 
         | There have been past minimum wage hikes, and that's not what
         | has happened. The costs get passed onto consumers.
         | 
         | Of course, there's presumably some hypothetical minimum wage
         | that would be too high and destroy the industry, but the
         | amounts being discussed in the US are below what other
         | countries have already tried.
        
           | nickff wrote:
           | Your second sentence is debatable, as it appears that many
           | European countries have high enough minimum total
           | compensations (including benefits and other indirect costs)
           | that unemployment is relatively high, and it can be very
           | tough to get on the economic ladder.
        
             | rbg246 wrote:
             | But equally a poverty wage job doesn't get you on the
             | ladder it makes you an indentured servant.
        
               | nickff wrote:
               | The company I work at has hired a number of employees
               | whose only previous work was very low wage, and that (low
               | wage) experience definitely weighed in their favor.
        
         | pnutjam wrote:
         | Maybe we need some sort of wage floor or mandatory
         | "minimum"...?
        
         | michael1999 wrote:
         | Firms in a competitive market are price takers. None of them
         | individually can raise prices. But an increase of the minimum
         | wage increase affects all of them together, and will cause a
         | new equilibrium at higher prices.
        
           | fighterpilot wrote:
           | That assumes no substitutes, but in reality this will
           | increase the relative cost of restaurants compared to home
           | cooking which will reduce demand for take out.
        
         | Sebb767 wrote:
         | > This article unfortunately doesn't address the business side
         | of the problem.
         | 
         | She actually addressees this in the very last paragraph:
         | 
         | > if a business can't pay a living wage, should it be a
         | business?
        
           | rufus_foreman wrote:
           | If a business can't pay a living wage, the workers will die
           | off and the problem will be solved.
        
           | djbebs wrote:
           | Yes? I dont understand how this is a question.
           | 
           | If a businesa is in operation profitably it is because it is
           | providing more value than if it were not, otherwise it would
           | not be able to remain in business
        
             | Jweb_Guru wrote:
             | If a business is operating profitably by paying people
             | wages below the cost of living, it is being subsidized by
             | the government and therefore is not independently
             | profitable in any meaningful sense.
        
         | rbg246 wrote:
         | I don't think anyone is saying that these sorts of companies
         | have lots of money.
         | 
         | These business have a model that relies on poverty wages
         | changing the minimum wage will disrupt these businesses greatly
         | and I don't see a problem with that.
         | 
         | You can't keep a broken thing going because of the businesses
         | that will have to change their model.
         | 
         | But sorry I also see your point there needs to be help to
         | business to change their business.
        
         | fuzzer37 wrote:
         | I'm of the opinion that if you're business model relies on
         | paying people so little that they don't even want to work for
         | you, maybe that business _shouldn't_ be viable. No one is
         | forcing you to own a business, just like no one is forced to
         | work for you.
        
       | RGamma wrote:
       | ITT: Americans being afraid of social market economy
        
         | [deleted]
        
       | betwixthewires wrote:
       | I just wanted to comment on the photos of the sonic drive-thru,
       | with the sign that basically shames their employees. "People
       | don't want to work." No, people don't want to work _for sonic_ ,
       | a company that pays its car hops tip wages and then leaves no
       | mechanism to tip with a card in their unnecessary touch screen
       | kiosks, a company that charges extra for ketchup. Imagine getting
       | paid 2.15 an hour to hear the 10th person today complain about
       | having to ask for ketchup with their fries, and only getting tips
       | on cash purchases, something exceedingly rare. I've never worked
       | for this company, I never would, nobody should, and I can't wait
       | to hear the impending news that the company is filing bankruptcy,
       | I will throw a party.
       | 
       | Beyond that, there's too much noise in this article about
       | "capitalism" and "BIPOC" and in reality what's happening is a job
       | market going _back to_ normal, where people actually have
       | options, rather than the extended  "recovery" of the great
       | recession where people had none.
        
       | LatteLazy wrote:
       | Neither.
       | 
       | If employers really wanted more workers, they'd up wages.
       | 
       | If employees really wanted to work they'd settle for less.
       | 
       | If neither is happening then everyone is happy and anyone
       | complaining is a liar in the economic sense.
        
         | mschuster91 wrote:
         | > If neither is happening then everyone is happy and anyone
         | complaining is a liar in the economic sense.
         | 
         | The complaining is an economic act in itself - employers
         | whining about "unable to find workers" usually get political
         | help as a result, either in the form of tax breaks/other
         | subsidies or in the form of relaxed labor laws/enforcement
         | (e.g. loosening the requirements to fire someone, reducing the
         | amount of inspection for undocumented workers).
        
         | xondono wrote:
         | This. Everyone is trying to milk the government for "support",
         | especially if they can get it in cash.
        
           | colpabar wrote:
           | Why shouldn't they? The government taxes everything it
           | possibly can, and for the past year the government has put a
           | ton of restrictions in place that caused a lot of people to
           | lose their jobs. It is now time for the government to start
           | using those taxes to provide the safety net it promises us.
           | 
           | If the pentagon can "lose" 125 billion dollars
           | ($125,000,000,000), I really don't care that people with the
           | ability to "milk" the gov for cash are taking advantage of
           | that ability. It's their own money in the first place!
        
             | intergalplan wrote:
             | Seriously. I'd rather "deadbeat Johnny" down the street
             | milk the government for a few hundred a month than
             | Halliburton milk them for $50,000,000,000. At least he's
             | gonna spend a fair bit of that money locally.
        
             | xondono wrote:
             | I'm not saying they shouldn't. I'm just saying you should
             | not be surprised of their complaints.
        
           | Clubber wrote:
           | I mean, every year the government milks me, and it certainly
           | is in cash.
        
         | Jiejeing wrote:
         | But who even wants to work for a minimum wage job for the
         | pleasure of it?
         | 
         | The corporation needs labor, but the employee need money, not
         | labor (but it happens that most common way for normal people to
         | earn money to live is through labor).
        
         | throwaway292893 wrote:
         | The people with jobs paying taxes aren't very happy to support
         | freeloaders simply taking unemployment because they don't want
         | to work.
        
           | colinmhayes wrote:
           | I feel happy enough with the situation. No one should be
           | forced to work a shitty job imo.
        
             | throwaway292893 wrote:
             | Well I'm not. Now there's two anecdotes to work with.
             | 
             | I worked a shitty job to get through college, it's a
             | stepping stone.
             | 
             | These jobs aren't meant to live on. They should be used as
             | part time jobs for people transitioning in their careers,
             | like students.
             | 
             | When you give handouts to people who don't want to work you
             | are not doing them any favors. They become reliant and
             | trapped in that loop.
             | 
             | That's not to say there shouldn't be a safety net with
             | strict qualifications. You're doing no service to the
             | people who need it by allowing those who don't.
             | 
             | We should be spending money creating new, better paying
             | jobs, not new social programs.
        
           | solosoyokaze wrote:
           | I pay taxes and I'd be super happy if my money went to
           | support people in this country without jobs. It would lower
           | crime and increase the quality of life for everyone living
           | here. I could also be one of those people someday.
           | 
           | Unfortunately many of my tax dollars go to fund a military I
           | find ethically abhorrent instead of improving the quality of
           | life in the US.
        
           | [deleted]
        
           | iaw wrote:
           | I pay my fair share of taxes and I'm happy to support
           | 'freeloaders' when they're unemployed and need support.
           | Especially if it leads to a universal living wage from
           | employers.
           | 
           | Don't speak for me please.
        
             | throwaway292893 wrote:
             | I'm speaking for me and those I know. My response was to GP
             | saying everyone is happy. I am not.
             | 
             | Also, I'm not talking about the people who need support,
             | I'm talking about the people taking advantage and staying
             | on unemployment because they don't want to work.
        
               | scollet wrote:
               | I may be missing what you mean by "taking advantage" but
               | isn't that the point? Like taking advantage of a life
               | raft after going overboard.
               | 
               | If someone chooses to not be employed and it brings them
               | basic needs and recuperation, then I see the system
               | working well.
        
               | throwaway292893 wrote:
               | You shouldn't be able to "choose to not be employed",
               | someone else is picking up the slack for you and you are
               | taking away benefits that could be used on someone that
               | NEEDS it (disability, elderly, etc.)
               | 
               | When others see that you can just give up and get paid,
               | they will also become burnouts.
               | 
               | Eventually you will run out of other people's money.
        
               | AlexandrB wrote:
               | I wish this logic was more frequently applied to large
               | corporations and their externalities or to the military.
               | How much money was flushed down the drain to develop
               | dubious weapon systems like the F-35 or to clean up
               | messes like Deepwater Horizon. Yet when we give ordinary
               | people some money suddenly it's a moral failing on their
               | part and we're "picking up the slack".
               | 
               | Here's an idea: next time there's an oil spill, lets take
               | the money for cleanup out of the executives' bank
               | accounts (and investments, and properties) before we dig
               | into the public coffers. _Then_ we can talk about
               | freeloaders at the bottom.
        
               | throwaway292893 wrote:
               | I do too, but currently the opposite logic is being
               | applied to unemployment benefits. Maybe there will be an
               | article about those shady defense contracts and eco
               | projects but that's not the topic.
        
         | mc32 wrote:
         | Apparently close to 30% of household income right now is from
         | government payments. I think on average people are getting the
         | equiv of $15/hr from gov checks. So for people to want to work
         | it's going to have to exceed that by some non trivial amount.
        
           | intergalplan wrote:
           | > Apparently close to 30% of household income right now is
           | from government payments
           | 
           | How much is it normally? Definitely not 0%. Also, what's
           | "government payments"? Does it include wages to government
           | employees, for instance?
           | 
           | (I expect the figure is higher than normal, I'm just not sure
           | from this _how much higher_ )
        
             | mc32 wrote:
             | It does not include wages. These are "welfare/unemployment
             | benefits" These are spikes. During the last recession it
             | spiked into the teens. Before that it was lower. So, yeah,
             | it's a lot of money.
        
               | intergalplan wrote:
               | Ah, OK--if so then the total share of all household
               | income from all government sources must be well over 50%
               | right now, no? Wages, pensions, (including military, in
               | both cases, and state and local government) Social
               | Security, et c.
        
           | jnwatson wrote:
           | Ultimately, this is a problem with all government benefits
           | with an strict binary income limit. The result is that, in
           | some circumstances, earning 1 more dollar results in losing
           | thousands of dollars. The marginal income tax system was set
           | up this way for a reason.
           | 
           | If these unemployment benefits were paid out UBI-style,
           | regardless of current employment, there wouldn't be a
           | disincentive to find work.
        
             | petre wrote:
             | > earning 1 more dollar results in losing thousands of
             | dollars
             | 
             | They might either go out of business or automate those
             | roles if they can't afford to pay blue collar workers a
             | living wage. I'm not a socialist, but some business do rip
             | off low income workers. So they might as well cease to
             | exist if they can't find workers to rip off, instead of
             | claiming that _people are lazy_.
        
             | christophilus wrote:
             | > The result is that, in some circumstances, earning 1 more
             | dollar results in losing thousands of dollars.
             | 
             | I think your new marginal rate only applies to anything
             | over the limit that bumped you into a new tax bracket, so I
             | don't think this is right. A raise always gets you more
             | money.
             | 
             | The exception being if it bumps you out of the government
             | assisted healthcare bracket. Then, a raise could indeed be
             | a loss.
             | 
             | Edit: I thought you were talking about income tax, but you
             | might have been talking about business subsidies, which I
             | know nothing about.
        
               | somebodythere wrote:
               | They are talking about welfare benefits. Many of these
               | are structured so that the marginal dollar you earn
               | results in $0.75 to $1000+ being taken away from you in
               | benefits.
        
           | paulpauper wrote:
           | but much of that temporary.
        
           | LatteLazy wrote:
           | I'm a brit so I'm far from an expert but I though you kept
           | the US covid payouts whether you worked or not? (unless you
           | earn something like 400k a year)?
           | 
           | Sorry if I'm missing your point...
        
             | jpindar wrote:
             | The three individual "stimulus checks" went to everyone
             | whether they worked or not.
             | 
             | But in addition, unemployed people have been getting
             | unprecedented amounts of weekly Unemployment Insurance
             | payments. In normal times, you can only get these for a few
             | months while proving that you are actively looking for
             | work. During the pandemic, these have been extended and
             | greatly increased, and the government has mostly stopped
             | checking whether people were really looking for work. The
             | normal rules are going to go back into effect soon, though.
        
         | itronitron wrote:
         | There is also a nasty waiting game that is playing out right
         | now. Employers don't really want to hire people that need a
         | paycheck as those people, if hired, are more likely to ask for
         | more sooner. So employers have no incentive to advertise higher
         | wages for an open position because they will just get more
         | applicants from people who 'need money', not necessarily better
         | applicants.
        
           | AlexandrB wrote:
           | I don't think a lot of people work in fulfillment centers,
           | construction, fast food, or retail because they love the job.
           | Most people are there because they "need money". If employers
           | think otherwise they have been drinking too much of their own
           | coolaid about "passion".
        
       | gred wrote:
       | Given the surge in online shopping and the blue-collar labor
       | shortage (not really a shortage, just wages triplicating within 1
       | or 2 years), logistics automation is in overdrive right now. Many
       | of these jobs won't be available to come back to (at any price)
       | once the helicopter money runs out.
        
       | macinjosh wrote:
       | If this is happening it is truly a good thing. I have always felt
       | that the best way to have improvements for entry-level labor is
       | if they just refused to take the shitty jobs and the market
       | turned on employers. What employers refer to as shortages aren't
       | really that at all. The truth is that the labor market is just
       | not in their favor as it typically is.
       | 
       | I do not think it is ideal that the alternative option being
       | utilized is government handouts. I'd rather people have the
       | mindset to, for example, run their own hot dog stand on the
       | street instead working for a fast food chain. But
       | entrepreneurship is not easy for everyone.
        
         | cratermoon wrote:
         | It's not even the shitty entry-level labor that is underpaid.
         | There's plenty of examples of companies offering $15/hr for
         | mid-career jobs requiring some post-secondary education.
        
         | djfobbz wrote:
         | I'm not too sure about that one! I've seen some entry level
         | laborers getting paid $10/hr to sleep in their car. I don't
         | think "Sleeping in your car" is a valid job description for any
         | business.
        
       | neilwilson wrote:
       | Business should always have to compete for labour. That way there
       | is an incentive to replace labour with machines and better
       | processes - which is where increased standard of living comes
       | from.
       | 
       | However there is a problem. The 'standard job' is now gardening
       | leave with a wage, which any other job has to compete with. And
       | what that leads to is a 'dead zone gap' in the wage structure
       | between the 'standard job' and the next reasonable job (say
       | working 9-5 Mon-Fri with full benefits, close to home). A private
       | employer has to pay a much higher wage than the payment for the
       | 'standard job' to get people to work for their 'reasonable job'.
       | 
       | (You get the same between unemployment benefit and the 'minimum
       | wage' in many countries).
       | 
       | However we could have everybody earning the living wage working
       | for a publicly provided 'reasonable job' at a living wage, which
       | would mean the that the private employer would only have to pay a
       | penny more per hour to get the labour they need.
       | 
       | The most efficient construction is when the 'standard job' and
       | the 'reasonable job' are the same. That eliminates the 'dead zone
       | wage gap', and allows people to smoothly move between public and
       | private jobs, increasing the efficiency of the use of labour -
       | all without exploitation.
       | 
       | And those business that can't deliver a profit with this system?
       | Well they get to close to make room for better businesses that
       | can.
       | 
       | Business is there to serve people, not the other way around.
        
       | bradlys wrote:
       | I find this is true even within software. There is a large
       | complaint about not enough engineers. There are enough engineers
       | - it's just that you won't pay enough for them for the given
       | locale! If every startup started compensating like FAANG, they'd
       | have no trouble finding talent.
       | 
       | Personally, I've had to go through this recently where I received
       | 5 job offers. All well below what I'd consider "market" rate.
       | They were all lower than past offers. Basically, companies are
       | being very cheap with equity and/or salary. If you live in SF and
       | are a senior engineer, giving equity that only matches FAANG when
       | the company hits an absurd valuation that will likely never come
       | is just not going to get people to come. Why bother? Whole point
       | of startups is that you could _earn more than faang_ if you get
       | lucky enough. It shouldn't be that you just match FAANG if you
       | get lucky.
        
         | luckylion wrote:
         | > If every startup started compensating like FAANG, they'd have
         | no trouble finding talent.
         | 
         | That can't work. Current talent is a zero-sum game. You offer
         | more, you get someone to switch over to you, somebody else
         | offers more still and takes that person from you.
         | 
         | You might attract more future talent to the industry by
         | offering more, but since software developers already make 2-10
         | times the average, I doubt that people think "you just can't
         | make money in software, I'm going to do something else".
        
         | thunfischbrot wrote:
         | Meh - I see one of the benefits of working outside of FAANG and
         | other enterprises to work on something you trule believe in.
         | Who truly loves working on improving the returns on online
         | advertising to extract more money out of people's pockets?
        
       | mywittyname wrote:
       | I've long felt that many jobs paid unsustainably low wages. There
       | are a lot of jobs where your net pay is below zero, long term,
       | when you factor in the external costs associated with working,
       | such as needing transportation. These jobs have been propped up
       | by debt.
       | 
       | It looks like the pandemic has put and end to this.
       | Transportation costs have skyrocketed to such a degree that it's
       | basically impossible for a poor person to even get a car, because
       | they are going to be outbid by a not-poor person who is willing
       | to pay a lot more for the same crappy car because of shortages.
       | Repair shops are having issues getting replacement parts, so even
       | maintaining a vehicle is getting difficult.
       | 
       | We built our economy on exploitation, and now the exploited have
       | been drained dry. So now we have to either pay up or do without.
        
         | TuringNYC wrote:
         | Another thing: if the job pays just enough to disqualify you
         | from state-run healthcare (medicaid, etc), but not enough to
         | pay out-of-pocket for health insurance, the only logical step
         | for many is to not work.
         | 
         | This is especially the case for part-time jobs which do not
         | provide healthcare.
        
         | gruez wrote:
         | >I've long felt that many jobs paid unsustainably low wages.
         | 
         | Can you elaborate on this? $7.25 * 8 hours = $58. It's hard to
         | imagine expenses adding up anywhere close to $58/day,
         | especially if you factor in that in high cost of living areas
         | the minimum wage is also higher than $7.25.
        
           | inetknght wrote:
           | > _Can you elaborate on this? $7.25_ 8 hours = $58. It 's
           | hard to imagine expenses adding up anywhere close to $58/day,
           | especially if you factor in that in high cost of living areas
           | the minimum wage is also higher than $7.25.*
           | 
           | Wow can you be any more out of touch? Your comment is
           | offensively innaccurate.
           | 
           | $58/day = $1740 for 30 days
           | 
           | Unhealthy cheap carbs for a single person... $200/month
           | (chicken, beans, rice, milk, cheese, bread)
           | 
           | Shitphone with basically no internet for a single person...
           | $40/month (who needs internet anyway)
           | 
           | Fuel for a single person... $200/month (assume 2 tanks /
           | week)
           | 
           | Rent for a single person... $1400/month far (+fuel)
           | 
           | Health insurance because you have two or three shit part-time
           | jobs: $400/mo
           | 
           | Vehicle insurance on an old vehicle: $300/mo
           | 
           | It's hard to imagine someone who's so out of touch with
           | reality that they think they can get away with claiming
           | minimum wage is higher than $7.25 in high cost of living
           | areas. In Houston, Texas the minimum wage is ... $7.25/hr.
           | Cost of living here isn't approachable to minimum wage.
           | 
           | This doesn't even _start_ to pay for taxes, retirement
           | investments, medical emergencies, vacations, legal disputes,
           | education costs, or heaven forbid having family.
           | 
           | What numbers are you using for your costs?
        
             | gruez wrote:
             | >Unhealthy cheap carbs for a single person... $200/month
             | (chicken, beans, rice, milk, cheese, bread)
             | 
             | >Shitphone with basically no internet for a single
             | person... $40/month (who needs internet anyway)
             | 
             | >Health insurance because you have two or three shit part-
             | time jobs: $400/mo
             | 
             | >Rent for a single person... $1400/month far (+fuel)
             | 
             | These are all sunk costs. You need them regardless of
             | whether you have a job or not. You seem to be talking about
             | your general finances (ie. your expenses > your income),
             | whereas I interpreted mywittyname's comment as saying that
             | the job itself is a net loss (ie. your cost of getting the
             | job > your income from job).
             | 
             | >Wow can you be any more out of touch? Your comment is
             | offensively innaccurate.
             | 
             |  _Please respond to the strongest plausible interpretation
             | of what someone says, not a weaker one that 's easier to
             | criticize. Assume good faith._
             | 
             | https://news.ycombinator.com/newsguidelines.html
        
               | inetknght wrote:
               | > _These are all sunk costs. You need them regardless of
               | whether you have a job or not_
               | 
               | They're not sunk costs if you literally don't have money
               | to pay for them.
               | 
               | > _Please respond to the strongest plausible
               | interpretation of what someone says, not a weaker one
               | that 's easier to criticize. Assume good faith._
               | 
               | Your argument _wasn 't_ in good faith. You're saying that
               | minimum wage is a livable wage which is a demonstrably
               | false statement. Then you're also claiming that the cost
               | of living is a sunk cost.
        
               | Sebb767 wrote:
               | I think a better phrasing of his argument would be "if
               | you take that job, the _additional_ costs will not
               | outweigh the income you get from that job ". Put in
               | another way, your net surplus after a month will be more
               | with the job than without, irrespective of whether it is
               | actually positive.
        
               | gruez wrote:
               | >They're not sunk costs if you literally don't have money
               | to pay for them.
               | 
               | Food isn't optional. Getting a job that pays you money
               | which you spend on food doesn't magically make the cost
               | of food a cost of getting the job.
               | 
               | >You're saying that minimum wage is a livable wage which
               | is a demonstrably false statement
               | 
               | I made no such statement. Please point out where you
               | think I made that statement.
        
               | inetknght wrote:
               | > _Food isn 't optional. Getting a job that pays you
               | money which you spend on food doesn't magically make the
               | cost of food a cost of getting the job._
               | 
               | Most people aren't able to get food without money
               | obtained from a job. So unless your food is provided
               | elsewhere then getting a job that pays you money which
               | you spend on food _does_ magically make the cost of food
               | a cost of getting the job.
               | 
               | > _I made no such statement. Please point out where you
               | think I made that statement._
               | 
               | > _$7.25_ 8 hours = $58. It 's hard to imagine expenses
               | adding up anywhere close to $58/day*
        
               | gruez wrote:
               | >Most people aren't able to get food without money
               | obtained from a job. So unless your food is provided
               | elsewhere then getting a job that pays you money which
               | you spend on food does magically make the cost of food a
               | cost of getting the job.
               | 
               | That makes zero sense from an accounting point of view.
               | 
               | >> I made no such statement. Please point out where you
               | think I made that statement.
               | 
               | >> $7.25 8 hours = $58. It's hard to imagine expenses
               | adding up anywhere close to $58/day*
               | 
               | 1. I'm not sure how you're getting "minimum wage is a
               | livable wage" from that comment.
               | 
               | 2. you seem to be fixated on "expenses" meaning living
               | expenses (eg. rent, food, clothing, etc.), whereas I was
               | only talking about expenses related to getting the job
               | (eg. transport). This was pointed out several comments
               | ago.
        
               | throwawaygh wrote:
               | _> That makes zero sense from an accounting point of
               | view._
               | 
               | If your point of view prevents you from understanding
               | that people need shelter, food, and clothing in order to
               | not die, and must be alive in order to work, then your
               | point of view might not be sufficient.
        
               | inetknght wrote:
               | > $7.25 8 hours = $58. It's hard to imagine expenses
               | adding up anywhere close to $58/day*
               | 
               | > _I 'm not sure how you're getting "minimum wage is a
               | livable wage" from that comment._
               | 
               | The comment you replied to stated:
               | 
               | > _There are a lot of jobs where your net pay is below
               | zero, long term, when you factor in the external costs
               | associated with working, such as needing transportation._
               | 
               | Transportation is just a single one of those costs.
               | Nobody in their right mind is going to get a job that
               | they recognize won't pay for their _expenses_ and many
               | people consider more expenses than just transportation.
               | 
               | > _I was only talking about expenses related to getting
               | the job (eg. transport)._
               | 
               | That wasn't clear and is no doubt where our discussion
               | went astray
        
               | gruez wrote:
               | >many people consider more expenses than just
               | transportation.
               | 
               | You (and other people) seem to think that food, housing,
               | and healthcare is an expense in getting a job, but that
               | makes zero sense from an accounting point of view. This
               | is trivially proven with a thought experiment: let's say
               | you were unemployed and had $2000/month in "required"
               | expenses, and a job offered you $1000/month. Are you
               | going to turn down that job because it "won't pay for my
               | expenses"? Of course not, even though you're still losing
               | money from an overall cashflow perspective, taking the
               | job still provides you a +$1000 improvement to your
               | financial situation[2].
               | 
               | [1] although I suppose you would need less calories if
               | you didn't work, but I think that's safe to ignore
               | 
               | [2] for simplicity we can ignore government subsidies
               | that gets cut off when you exceed a certain amount of
               | income, or unemployment.
        
               | inetknght wrote:
               | > _that makes zero sense from an accounting point of
               | view_
               | 
               | Well the world doesn't work like your armchair
               | accounting.
               | 
               | > _a job offered you $1000 /month. Are you going to turn
               | down that job because it "won't pay for my expenses"?_
               | 
               | $1000/month is _less_ than that minimum wage. So I'll
               | assume it's indeed a part time job.
               | 
               | Taking that job means 4 hours less time each day looking
               | for a better job because you're busy with this part time
               | one. Not only 4 hours less for work, but another 1 or 2
               | hours each day because now you're driving to and from
               | that job. So 6 hours less each day. That's an expense.
               | 
               | Now that you're working it also means being less eligible
               | for any government assistance. $1000/month to work 4
               | hours/day while taking $800 less government assistance
               | comes out to... a net of $200/month. For 4 hours/day of
               | work and an additional 2 hours/day for transportation.
               | 
               | If you look at the raw money, you're making more money.
               | Homelessness is on the horizon and inching ever closer
               | even if it's approaching slower.
               | 
               | Are those 6 hours to you really worth your time when you
               | could have spent those 6 hours trying to find an even
               | better job?
               | 
               | And when you _do_ reach homelessness, is that $1000
               | /month job going to continue employing you?
               | 
               | I think that's the dilemma that the commenter at the
               | start of this thread posits. Jobs are "available" but
               | they're not sustainable. And people are turning down
               | $18/hr stressful part-time jobs because they _can 't
               | afford them_.
        
               | gruez wrote:
               | >Well the world doesn't work like your armchair
               | accounting.
               | 
               | ah yes, just slap "armchair" in front of something to
               | invalidate someone's position.
               | 
               | >Taking that job means 4 hours less time each day looking
               | for a better job because you're busy with this part time
               | one
               | 
               | >Are those 6 hours to you really worth your time when you
               | could have spent those 6 hours trying to find an even
               | better job?
               | 
               | The money you "earn" searching for a job is highly
               | variable, and I don't see any attempts at quantifying it.
               | If you were recently employed for $4000/month, your time
               | might very well be spent looking for a job rather than
               | taking the next min. wage job, but if you were unemployed
               | for 6+ months and your previous job only barely paid
               | better than minimum wage, the ROI is probably not there.
               | 
               | >Not only 4 hours less for work, but another 1 or 2 hours
               | each day because now you're driving to and from that job.
               | So 6 hours less each day.
               | 
               | Aren't part time jobs closer to "8 hours a shift but you
               | come a few times a week" rather than "4 hours a shift but
               | you come in 5 days a week"?.
               | 
               | >Now that you're working it also means being less
               | eligible for any government assistance. $1000/month to
               | work 4 hours/day while taking $800 less government
               | assistance comes out to... a net of $200/month. For 4
               | hours/day of work and an additional 2 hours/day for
               | transportation.
               | 
               | Thank you, that's the type of numbers I was looking for
               | in the original comment.
               | 
               | >And when you do reach homelessness, is that $1000/month
               | job going to continue employing you?
               | 
               | Would you rather be on the streets in 10 months or 5
               | months? The choice seems clear.
        
               | inetknght wrote:
               | > _Aren 't part time jobs closer to "8 hours a shift but
               | you come a few times a week" rather than "4 hours a shift
               | but you come in 5 days a week"?._
               | 
               | Maybe. "A few times a week" can mean "I need you to come
               | in tomorrow and I don't care if that conflicts with your
               | second job." It becomes a risk.
               | 
               | > _Would you rather be on the streets in 10 months or 5
               | months? The choice seems clear._
               | 
               | The problem's been going on for months. Homelessness is
               | significantly increased over the past year. The choice
               | made seems clear.
        
               | Sebb767 wrote:
               | To me it looks like you two are talking past each other.
               | In fact, I think you're both right. gruez point can be
               | summarized as "if you're having a minimum wage job, your
               | loss at the end of the month is smaller compared to
               | having no income at all" [0], which is a possible
               | interpretation of the comment that sparked this thread
               | [1]. This is also the reason he does not account for
               | food, while you do. Your (inetknght's) point is that
               | "with a minimum wage job, you'll make a loss at the end
               | of the month". As far as I read it, gruez actually _doesn
               | 't_ try to make the point that a minimum wage job is
               | sustainable, so there's no contradiction.
               | 
               | [0] Compared to, for example, driving for Uber, where at
               | the end of the month the cost for car+fuel+maintenance
               | might cost you more than you earned, increasing your net
               | loss.
               | 
               | [1] https://news.ycombinator.com/item?id=26995335
               | 
               | This line in particular:
               | 
               | > There are a lot of jobs where your net pay is below
               | zero, long term, when you factor in the external costs
               | associated with working, such as needing transportation.
        
             | bena wrote:
             | I have a problem with your basic starting point.
             | 
             | You say $58/day for 30 days. That's working the whole month
             | with no days off. That's not anybody's life that I know.
             | 
             | It's better to estimate 168 hours per month worked. That's
             | 4 full-time work weeks of 5 days a week plus an extra day.
             | With 12 months in the year, you're still effectively short
             | a few days, but it's close enough.
             | 
             | So $7.25 * 168 is $1218
             | 
             | Let's ignore every other expense. Let's say you walk
             | everywhere, use the library for internet, whatever.
             | 
             | Average rent is roughly that.
             | 
             | You are fucked from the start to just put a roof over your
             | head. That's also assuming that job is 40 hours a week.
             | Giving 8 hours work, 8 hours sleep, you have 72 hours left
             | over. Some of that time will be dedicated to commuting,
             | hygiene, eating, etc. You might be able to swing a second
             | full time job, but that's just your life from then on.
             | 
             | Also 2 tanks per week, that's insane. Even when I was
             | driving 50-ish miles each way, I was getting gas about
             | twice every three weeks. With a daily 100 mile commute, I'd
             | say my fuel costs were in the neighborhood of $100 per
             | month.
             | 
             | Your insurance is also way out of whack. Old cars have
             | cheaper insurance. I have a 2017 model and pay $700-ish
             | every 6 months. And it wasn't much worse when it was new.
        
             | j1elo wrote:
             | > Vehicle insurance on an old vehicle: $300/mo
             | 
             | Wow. In Spain you would pay between EUR150 to 200 _per
             | year_ of insurance for the typical old cheap car. 400 /year
             | for a nice, semi luxury one. I knew some things were
             | expensive in the States, but this particular one surprised
             | me a lot.
        
               | simfree wrote:
               | Depending on the car and where you live insurance can be
               | lower or higher. Outside of collector/classic car
               | insurance policies (eg: this is not a daily driver car
               | and you agree not to exceed a low number of miles yearly)
               | or parked insurance (a few hundred miles a year), there
               | is not $200 to $300 a year car insurance in the USA.
               | 
               | Tribal reservations don't require license plates or
               | insurance usually, and you cab choose to self insure if
               | you have sufficient cash set aside.
        
               | tedsanders wrote:
               | It's not typical in the States. I own a new vehicle, have
               | comprehensive insurance, and pay Geico ~$60/mo. I suspect
               | that someone paying $300 for an old vehicle has either
               | (a) an expensive low-deductible plan, (b) a driving
               | record with past insurance claims, or (c) an expensive
               | old car.
        
               | grandmczeb wrote:
               | A lot depends on the state, type of coverage, driving
               | history, and which company you use. The average range in
               | Texas is ~$45-165/month depending on coverage[1]. I
               | personally pay a bit over $50/month for a 2010 Honda
               | Accord in California.
               | 
               | I wouldn't take the costs listed in the parent comment
               | literally.
               | 
               | [1] https://www.bankrate.com/insurance/car/states/
        
             | aliceryhl wrote:
             | Couldn't you do without the car? I've heard that the US has
             | bad public transport, but is it really that bad?
        
               | kevinmchugh wrote:
               | If you live anywhere with public transit that's complete
               | enough and reliable enough to get you to work on time,
               | you're paying more in rent to make that happen. It might
               | be cheaper but not by a lot
        
               | seoaeu wrote:
               | Doing that could easily add an hour (or in particularly
               | bad cases, two hours!) each way to your commute. Some
               | people do make that tradeoff, but it seems really
               | unpleasant.
               | 
               | The big issue is that transit accessibility is priced
               | into rent, so while parts of US cities might actually be
               | reasonable to get around with public transportation,
               | you'd never be able to afford to live there with a low
               | income.
        
               | maxerickson wrote:
               | There's lots of places with OK service, if you measure by
               | overall coverage it's pretty bad.
               | 
               | Like https://www.freep.com/story/news/local/michigan/detr
               | oit/2016... is about a guy that caught the attention of
               | the internet because he couldn't take public transit to
               | his job.
        
             | maxerickson wrote:
             | I'm glad I don't have to fit my expenses into a minimum
             | wage budget, but some of your numbers are pretty high.
             | 
             | I buy gas once every 2 or 3 weeks and spend $45 on a phone
             | plan with 4 GB of LTE (US; I guess that can fit the
             | definition of basically no internet). My car insurance
             | (with collision and unlimited medical) is less than $500
             | for 6 months.
             | 
             | I would probably balk at paying much more than $800 in
             | rent. The rental market here is pretty thin (I think part
             | of it is I don't know where to look), but I see a listing
             | for $1100 for a 4 bedroom house. Electricity+water+gas
             | would be in the range of $250 for 1 person (and less for
             | several as heating is a major utility cost here).
        
               | inetknght wrote:
               | > _but some of your numbers are pretty high._
               | 
               | Cost of living across the US varies wildly. The numbers
               | are pulled from my most recent billing cycle for Houston
               | and partly extrapolated to minimum wage (which I am most
               | definitely _not_ , but have friends who are).
               | 
               | My rent is $1500/mo for 920sqft inside the 610 loop. The
               | leasing office wanted $2000/mo for new contracts in
               | October last year.
               | 
               | It's _really_ hard to find places for $800 within a 30
               | minute drive of any office in Houston. _All_ of my
               | friends have the same problem. I 'm looking to buy a home
               | for a similar reason.
               | 
               | Living far enough out to have rent reduced to $800 is
               | offset by increased amount of time driving and therefore
               | increased costs in fuel. So I bought gas twice a month
               | before the pandemic with a 5 minute drive to the office.
               | When I lived 30 minutes out, I bought gas twice a week.
               | 
               | Car insurance depends a lot on vehicle, driver age, etc.
               | $300/mo was quoted to some younger family last summer --
               | they were outraged because it was half-again their car
               | payment. I pay $600/6-mo.
        
               | maxerickson wrote:
               | Are people doing office work for $7.25 in Houston?
               | 
               | I agree that prices vary widely, I'm not sure it makes
               | sense to take expensive places as typical.
        
             | betwixthewires wrote:
             | I don't know where you live, but _you 're_ the one that is
             | out of touch. 2 tanks a week? 200 bucks a month for shit
             | tier food? Ever heard of cooking? 1400 a month rent?
             | 
             | I've spent time in Houston, on minimum wage, and in the
             | past decade. It was alright. I even had the money to go out
             | drinking every weekend, by Rice university at that. Usually
             | when you hear arguments like this and you get down to brass
             | tacks, you start to hear the arguments that allude to the
             | real culprit, things like "I should be able to have extra
             | money for fun" which usually translates to "I blow my money
             | on things I can't afford and then blame the world for being
             | broke."
        
           | jolux wrote:
           | >It's hard to imagine expenses adding up anywhere close to
           | $58/day
           | 
           | Well thankfully we don't have to imagine, people have
           | researched this: https://livingwage.mit.edu/. According to
           | these data, the living wage across the US in 2019 was $16.54:
           | https://livingwage.mit.edu/articles/61-new-living-wage-
           | data-.... So it's not at all inconceivable that the federal
           | minimum is a poverty wage, in fact it almost certainly is.
        
             | gruez wrote:
             | But that has nothing to do with GP's claim? GP was talking
             | about your "net pay is below zero", meaning that the job
             | itself pays negative. eg. you get paid $50/day but spent
             | $55/day to earn it. Your comment seems to be about the
             | minimum wage not being able to sustain a given living
             | standard, eg. you get paid $50/day but you need to spend
             | $55/day to survive.
        
               | colpabar wrote:
               | First off, it's not $50 per day, because you're probably
               | paying income tax. But let's assume it is.
               | 
               | Second, it's not really "per day", that's an average.
               | Most bills recur monthly. Assuming a month of four weeks,
               | and working 5 days per week, that's 20 * $50 = $1000 per
               | month. Doesn't that seem like an extremely low number to
               | pay for rent, transportation, food, health care, kids,
               | utilities, etc? I pay more for that in rent every month.
        
               | gruez wrote:
               | >seem like an extremely low number to pay for rent,
               | transportation, food, health care, kids, utilities, etc?
               | 
               | everything in that list except for transportation are
               | sunk costs. In other words, you're paying for those
               | regardless of whether you have the job or not.
        
               | inetknght wrote:
               | > _you 're paying for those regardless of whether you
               | have the job or not._
               | 
               | ...unless you're not paying for those because you
               | literally don't have any money.
               | 
               | So yeah, food is a sunk cost, sure. But that sinking will
               | kill you without a job.
        
               | gruez wrote:
               | >...unless you're not paying for those because you
               | literally don't have any money.
               | 
               | That's not how accounting works. If you got a FAANG job
               | that paid $300k/year, then proceeded to blow $60k on a
               | tesla, your net pay for the job isn't $240k.
        
               | inetknght wrote:
               | Right, but at that minimum wage job you're not going to
               | blow that $60k on a Tesla. You're not even going to blow
               | $10 to go _look_ at a Tesla. You 're going to blow $2k on
               | a root canal because your food is crap and your medical
               | coverage is worse.
               | 
               | Also, that $60k on a Tesla for the FAANG worker amounts
               | to a small percent of the worker's disposable income. But
               | that $2k amounts to over 100% of the minimum wage
               | worker's disposable income.
        
               | gruez wrote:
               | > Right, but at that minimum wage job you're not going to
               | blow that $60k on a Tesla. You're not even going to blow
               | $10 to go look at a Tesla. You're going to blow $2k on a
               | root canal because your food is crap and your medical
               | coverage is worse.
               | 
               | Way to miss the point. Whether the item is a tesla or a
               | can of beans is irrelevant. The point is that if
               | previously you couldn't afford X, after getting a new job
               | you could afford X, then you can't say that X is a
               | cost/expense of getting the job.
        
               | inetknght wrote:
               | > _The point is that if previously you couldn 't afford
               | X, after getting a new job you could afford X, then you
               | can't say that X is a cost/expense of getting the job._
               | 
               | Sure I can if X is a basic necessity of life.
        
               | jolux wrote:
               | What point are you trying to make? The federal minimum
               | wage is not enough to cover people's expenses, whether
               | those expenses come from holding the job or not is
               | irrelevant as to whether such a situation is
               | "sustainable." This feels like pedantry.
        
               | danaris wrote:
               | They're not "sunk costs", they're "basic necessities".
               | They have to be paid for every month (or whatever
               | period), so if a job doesn't provide enough money to pay
               | for them, _it is not paying a living wage_.
               | 
               | You can't just say "they need those to live" as if that
               | absolves you of explaining _how to pay for the things
               | they need to live_.
        
               | jolux wrote:
               | I read their comment differently than you did, but even
               | if I hadn't I don't quite understand your objection. By
               | definition if you're spending $55/day to survive, you're
               | spending $55/day to earn your pay, if nothing more. The
               | situation you describe is not sustainable either. Please
               | clarify.
        
           | mywittyname wrote:
           | First off, you need transportation to work. In most of
           | America, this means, you need a car, gas, insurance, and
           | maintenance.
           | 
           | Secondly, you need uniforms. These are often paid for out of
           | your check and come from companies that have pretty
           | comfortable markup.
           | 
           | Then you have the "expensive to be poor items" Such as
           | getting your paycheck on what amounts to a Visa gift card,
           | because cheap employers are transitioning to payment services
           | that offload the cost of associated with payroll onto the
           | employees. These cards have relatively high maintenance fees,
           | and charge for things like actually getting your money.
           | 
           | That's not even getting into shit like, "split shifts" where
           | you have to work a few hours, take a multi-hour break, then
           | work a few more hours. This means that you have to stay at
           | work for 8 hours, but only get paid for maybe 4-6 of them.
           | While you could leave, it would cost you money to do so.
           | 
           | I've gone through this with younger siblings over the years.
           | One in particular was a delivery driver, and factoring in
           | cost of their car, the only reason they thought they were
           | making money was because they were hiding the depreciation on
           | their car through very long car loans and were not paying for
           | the insurance coverage they should have been.
           | 
           | Most low wage positions are only possible because they are
           | subsidized by someone else, maybe it is a parent who lets
           | them live rent free, or they subsist on credit card debt and
           | payday loans to handle emergencies.
        
           | slv77 wrote:
           | Unlike capital equipment a business doesn't pay for the cost
           | of replacing labor as it ages. The cost in the US of raising
           | a child is about $250,000 or about $3 per hour over 40 years.
           | Businesses expect a pool of qualified and educated labor but
           | don't pay for childcare expenses.
           | 
           | Employees are expected to have reliable transportation to get
           | to the employers place of business but they do not cover
           | transportation expenses. The cost of $400 a month for
           | reliable transportation works out to $2.50 per hour.
           | 
           | Employees are typically required to have work appropriate
           | clothing. In the US this cost has often been pushed to
           | employees. In some cases even tool costs have been pushed to
           | employees.
           | 
           | Employees have wear and tear on joints due to repetitive
           | movements which will eventually have to be treated. Machines
           | need maintenance and businesses are expected to pay the costs
           | but with labor that is pushed back to the employee.
           | 
           | The economics of minimum wage only work short term for people
           | who are young, healthy and with no children where experience
           | gained will lead to a higher paying job in the near future.
        
           | lastofthemojito wrote:
           | I think the classic example of this is the pizza delivery
           | driver (or now the gig economy food delivery driver).
           | 
           | The driver might think "I made $100 today, great!", but they
           | generally don't have a good sense for their total expenses.
           | Sure, they know how much gas cost them this week, but they
           | don't know how much the next auto repair will be, or how much
           | depreciation they're incurring on their vehicle. And when
           | their auto insurance goes up because they've been driving so
           | many miles, that's out-of-pocket too - no employer is picking
           | that up.
        
             | joelfolksy wrote:
             | True. Of course, that only scratches the surface of why
             | it's a terrible job. In many locales, policies that cover
             | commercial driving are prohibitively expensive, and the
             | majority of drivers are effectively uninsured (often
             | without realizing it). It's not a stretch to say that
             | insurance fraud is a core part of that industry's business
             | model.
        
           | jfengel wrote:
           | Is it really that hard to imagine?
           | 
           | For starters, you don't want to have to work every single
           | day. If you work 5 days out of every 7, you only have $41.43
           | to spend per day.
           | 
           | The average cost of a studio apartment is over $900 a month.
           | That's $30 per day. Even if you get roommates, that's going
           | to cost you at least $15 per day.
           | 
           | That leaves you $26 a day to spend on food, clothing,
           | hygiene, Internet access, electricity, transportation, health
           | care (since most minimum wage jobs don't include it), and all
           | of the other expenses of life. And then pray you don't get
           | sick -- even with health insurance you're now losing income.
           | 
           | It adds up fast. There is basically nowhere in the US that
           | this is a living wage. At best you can barely scrape by with
           | no margin for error -- and certainly no money to spend on
           | training for a better job.
        
             | gruez wrote:
             | >The average cost of a studio apartment is over $900 a
             | month [...] That leaves you $26 a day to spend on food,
             | clothing, hygiene, Internet access, electricity,
             | transportation, health care
             | 
             | Seems like we're talking about different things. I was
             | talking about the net gain/loss from getting a job, whereas
             | you're talking about your overall living situation.
             | 
             | See my reply to jolux's comment.
             | https://news.ycombinator.com/item?id=26996114
        
           | [deleted]
        
           | kristjansson wrote:
           | Your replies down thread indicate an extremely narrow
           | interpretation of 'expenses' here, namely only those
           | financial costs directly related to employment. Taking that
           | interpretation, you're probably correct that nearly all jobs
           | offer net-positive pay counting only the those inputs from
           | the employee. You're right that someone with better off in
           | immediate financial terms with basically any job than no job.
           | 
           | However, that's something other than the 'sustainable' wage
           | in the GP comment, since that doesn't count costs of the
           | labor input! Each of us has only so much labor to sell in a
           | given month, and need to get enough in return to support, you
           | know, continuing to live and sell our labor. Sure, being
           | employed at wage that does not provide a basic level of
           | dignity is less worse than being completely destitute, but
           | it's a bit disingenuous to argue that being less-worse-off is
           | 'sustainable'.
        
             | woopwoop wrote:
             | I think his (gruez's) interpretation is the obviously
             | reasonable one, and I'm not sure why he's getting bashed so
             | severely here. Note that op made the claim that "net pay"
             | was literally negative, which seems to comport totally with
             | the interpretation given, and not at all with an
             | interpretation of "sustainability" referring to a living
             | wage.
        
         | cratermoon wrote:
         | > propped up by debt
         | 
         | Payday lenders make a killing on exploiting this.
        
           | drdeadringer wrote:
           | I worked on a (US) Naval shipyard for a spell.
           | 
           | The number of payday loan shops in the immediate surrounding
           | area was astounding. I kept hearing word of "Don't Do Payday"
           | financial help training for the Naval crew, who apparently
           | were a prime target for the industry. Before working there, I
           | had little idea such existed.
           | 
           | Think "worse than 'cash your cheque here'" places.
           | 
           | I don't know how many Naval folks I worked with took in to
           | these places, but every time I passed one I frowned and shook
           | my head.
        
             | myself248 wrote:
             | Some years back, I was on a jobsite where radios were
             | allowed, and we rotated through the crew, everyone playing
             | deejay for a day, so everyone's taste got represented. Some
             | guys would bring in a stack of CDs, some would just play
             | the radio. It meant I listened to a few stations I don't
             | normally listen to.
             | 
             | And the density of payday loan ads, on some stations but
             | not others, blew my mind. I don't think I ever heard one on
             | the classic-rock station (their stock in trade was
             | testosterone ads, apparently), but they were at saturation
             | density on the R&B station.
             | 
             | Payday loan places have always been scum, but that really
             | opened my eyes to the deliberate exploitation aspect. This
             | is targeted.
             | 
             | It's good to hear that there's financial training for the
             | Navy. I wonder if there's anything similar out in civilian
             | life that we could support?
        
               | WalterBright wrote:
               | > that we could support?
               | 
               | One of the most effective anti-poverty programs the
               | government could do is teach basic accounting and finance
               | as core curriculum in the public schools.
        
               | cratermoon wrote:
               | That sounds like victim-blaming. People are poor because
               | they can't balance their checkbooks?
        
         | anthony_romeo wrote:
         | There's another aspect: there's a horrible lack of common
         | decency and respect by supervisors and managers of low-wage
         | workers. Having worked menial data entry, warehouse, grocery
         | store, fast food jobs, I've interacted with far too many
         | stressed-out and abusive/abused bosses who cannot cope with the
         | razor-thin timelines with minimal workforce (which seems to be
         | the norm) and ultimately exhaust this irritating heat onto
         | their subordinates and fail to show a minimal amount of respect
         | to their employees to the degree of hostility and abuse.
         | 
         | This isn't so much of an "all bosses suck" trope (I am happy
         | and lucky to be at a healthier work environment at the moment).
         | The sense I have is demands from the top continue to be more
         | and more unrealistic as decisions are made to cut costs without
         | truly thinking about it may start to rot the foundation
         | beneath.
         | 
         | In my case, $18 sounds like a lot of money, but I wonder if
         | this just means the work will be exponentially more stressful
         | and unhealthy.
        
       | motohagiography wrote:
       | It's like people don't understand how their wages impact the
       | price of the goods they are producing.
       | 
       | The problem is domestic producers can't compete against the
       | actual terrible jobs with poverty wages that foreign producers
       | pay. The trade off is binary. Either you put tariffs on cheaper
       | foreign goods and protect your economy from predatory countries,
       | or you tolerate downward wage pressure. There is no middle
       | ground. It's such a simple and established reliable dynamic that
       | even politicians can understand it.
       | 
       | Our democracies have chosen cheap stuff and downward wage
       | pressure, with the spoils going to the people who manage the
       | capital flows. It's not a right/left thing either, as both sides
       | cynically advocate and exploit globalization to inflate those
       | capital flows.
        
         | lucian1900 wrote:
         | You're describing the effects of imperialism on the working
         | class of the imperialist countries, a point we communists make
         | all the time.
         | 
         | It absolutely is a left/right thing, it's just that the
         | imperialist countries have largely managed to exclude politics
         | left of centre.
        
       | unethical_ban wrote:
       | Occasionally, Twitter provides some nice insights in digestible
       | forms (of course, nuance gets stripped).
       | 
       | I saw a post recently that said something like "We watch Star
       | Trek and marvel at their post-scarcity world. We are living in a
       | post-scarcity world now, but all the benefits are being funneled
       | by wage slaves up to the 0.1%."
       | 
       | Paraphrased.
       | 
       | I was talking with a friend who mentioned that a local pizza
       | place is offering *$18/hr* for bussers at the restaurant. To me,
       | that is a great wage for someone to wipe down tables and sweep
       | floors. If they're still having trouble filling that, is it
       | because making $37k a year in Texas isn't good enough for a no-
       | education, no-experience job? Is it because the high-schoolers
       | who would normally do that aren't looking for jobs due to
       | pandemic? Is it the unemployment security and not having to
       | actually do work 40 hours a week?
       | 
       | I wonder if the roles of people at restaurants will have to
       | shift, so each person does some of everything, and get paid more,
       | instead of having dedicated low-wage cleaners. Or that profit-
       | sharing and healthcare may be the new model for restaurants.
        
         | Red_Leaves_Flyy wrote:
         | Profit sharing and healthcare are the minimum people want to
         | keep do the same crappy jobs in hostile environments with
         | creepy, violent, or domineering managers. The jobs have gotten
         | harder, people have more bills, and pay hasn't budged. Some
         | introspection by the "job providers" would be greatly
         | appreciated as they complain about labor shortages.
        
         | mandelbrotwurst wrote:
         | I won't argue your overall point but I will point out that the
         | "sweeping and wiping down tables" are the easiest parts of that
         | job and a small fraction of the labor that is done.
        
         | stakkur wrote:
         | > _is it because making $37k a year in Texas isn 't good enough
         | for a no-education, no-experience job?_
         | 
         | Maybe it's because it offers no meaningful health insurance, is
         | most likely _not_ full-time (such a job rarely is), and has
         | little long-term promise.
        
         | claudiulodro wrote:
         | > Is it because the high-schoolers who would normally do that
         | aren't looking for jobs due to pandemic?
         | 
         | The concept that entry-level food service is mostly staffed by
         | high-schoolers who don't really "need" the money is the
         | weirdest trope. Basically every restaurant is open during
         | school hours. Who is handling the lunch rush?
        
           | rednerrus wrote:
           | The kids who just graduated and don't have other prospects.
        
           | meragrin_ wrote:
           | My high school had a thing where students could work during
           | school hours. My sister did it.
        
           | pydry wrote:
           | Almost as if the trope were a pretext for why it's ok to pay
           | shit wages.
        
             | minimuffins wrote:
             | When an objectively flimsy discourse like that circulates
             | widely you have to ask yourself what its actual function
             | is. Its apparent function of describing the world
             | accurately is not being fulfilled, but the discourse
             | persists, so what is its less apparent function (and you
             | got it: it's to naturalize exploitation)?
        
           | nondeveloper wrote:
           | I worked in food service jobs during high school on the
           | weekend. I graduated a semester early and worked full-time in
           | food service for a few months, too. Not a bad option and
           | pretty common at my school c. 2010.
        
           | imbnwa wrote:
           | Yeah, I worked in hospitality my entire 20s in a major
           | American city, only ONCE did I work with an actual HS
           | teenager and that was at a middle-brow Mexican place and his
           | family knew the owners, and he only worked weekends. Great
           | kid though.
           | 
           | Also, most places serve alcohol and teens can't serve.
        
           | leetcrew wrote:
           | it's pretty common for the second shift to start right around
           | the time highschool gets out. or if it doesn't, the manager
           | might be flexible. dinner rush doesn't usually start until
           | 6:00 or so. there's also the weekend.
           | 
           | obviously highschoolers are not filling 100% of entry-level
           | food service jobs, but they make up a pretty good chunk of
           | these workers along with some college kids. it's a good
           | option for someone who has literally no work experience.
        
             | throwaway1777 wrote:
             | Except it's not really a good option. Maybe a high schooler
             | should be focusing on school.
        
               | paulpauper wrote:
               | Finally someone said it. High schoolers toiling away in
               | dead-end jobs is not necessarily 'good'. They can be
               | learning skills that generate a higher long-term ROI.
        
               | gruez wrote:
               | >Maybe a high schooler should be focusing on school.
               | 
               | How do you feel about college students working part time
               | during their studies?
        
               | paulpauper wrote:
               | only if they need the $ and there is no other option .
               | the ROI from a high GPA and good grad school, makes the
               | extra $ from a crappy part-time job insignificant.
        
               | leetcrew wrote:
               | imo this is one of those things that makes sense on paper
               | but doesn't work out in real life. the extra lifetime
               | earnings from a first job in hs/college are indeed
               | insignificant. the value of a job is that, for many
               | teenagers and young adults, it is the first time they
               | have to navigate an environment that isn't specifically
               | designed to cater to their needs. this is how most of
               | life is when you finish school.
        
               | rednerrus wrote:
               | For a lot of kids, if they don't have a job in high
               | school, they don't have any of the things they want. When
               | I was 14 I had a job so I could buy the things my parents
               | couldn't afford which was almost everything. I wanted new
               | shoes and new clothes so everyone wouldn't know how broke
               | we were. I wanted a car when I turned 16 and I knew the
               | only way that was going to happen was if I worked for it.
               | I didn't like not having money in my pocket when all of
               | my friends did.
        
               | jolux wrote:
               | I didn't work in food service but I did work a service
               | job (supervising children, teaching robotics, and hosting
               | birthday parties for kids) in high school. I did not
               | manage to save any of the money I made, but I definitely
               | learned a lot from the experience. Namely: most people
               | have no respect for service workers, and some people seem
               | to have active contempt for them. Quite unpleasant. I
               | don't think high schoolers should have to work for a
               | living, but then again I don't think adults should
               | either. However, I do think the experience of working
               | service jobs is one that more people should have.
        
               | nondeveloper wrote:
               | Maybe. But I learned a lot of useful skills working that
               | weren't taught at school. And working, along with sports
               | and clubs, kept me out of trouble. I tell my partner all
               | the time that when we have kids they're getting jobs in
               | high school.
        
               | leetcrew wrote:
               | okay, it's a good option if you want/need work and you're
               | a highschooler. I guess we could debate whether it is a
               | good thing for a highschooler to have a job in the first
               | place. that's going to depend on the situation. if you're
               | working tons of hours to support your family instead of
               | keeping up in school, that's going to hurt your long-term
               | prospects. if you're working a couple shifts a week so
               | you don't have to ask your parents for $20 to go to the
               | movies with your friends, I'd say that's an important
               | step towards independence. you learn a lot of stuff at a
               | shitty job that you can't learn in school.
        
               | seibelj wrote:
               | Honestly - working crap retail and food service jobs
               | during high school was as much (or more) valuable
               | education than what I learned in school. Certainly
               | motivated me in college to study and work hard. The value
               | of working is not only in the money earned, and I will
               | force my children to get part-time jobs during high
               | school.
        
               | minimuffins wrote:
               | I feel similarly, but I think a big part of that is that
               | my schooling was so bad. Ideally I'd have not had to work
               | and actually been learning something (and that's the goal
               | I have for everyone, as a collective political desire).
               | 
               | On the other hand, I notice people who didn't have to
               | work as kids and went straight into college and
               | respectable white collar jobs usually have absolutely no
               | idea how the rest of their fellow citizens actually work
               | and live, so I'm thankful for the perspective.
        
               | [deleted]
        
               | ryan93 wrote:
               | Why make your kids earn a profit for someone else? They
               | should be learning and hanging with friends. You didnt
               | learn more working fast food than in school. You hated it
               | which motivated you. Not everyone needs to experience
               | fast food to know its not a great career outcome.
        
         | runako wrote:
         | > If they're still having trouble filling that, is it because
         | making $37k a year in Texas isn't good enough for a no-
         | education, no-experience job?
         | 
         | It's most likely because somebody in the area is paying more
         | and/or offering a better job.
         | 
         | Is it really $37k, or is it an $18/hr job? That is, are they
         | offering $18/hr for 40 guaranteed hours a week for 52 weeks, or
         | is it just a few hours a day during the dinner rush (unless
         | they send me home early because of a light evening)? Can they
         | tell me today what hours I will be working 2 weeks from now, or
         | do they usually disclose the schedule a day or two in advance?
         | Are there any benefits? In other words, is it a typical
         | restaurant job?
         | 
         | I personally would prefer (say) $16/hr with a guaranteed 40
         | hours and predictable schedule to a typical restaurant job. Now
         | that big employers like Target, Amazon, etc. are in the $16
         | range, they may offer jobs that pay a lower hourly rate but are
         | more compelling overall. (The Amazon warehouse in Fort Worth is
         | paying nearly $18 and they have nonzero benefits and are
         | unlikely to run out of hours.)
        
         | paulpauper wrote:
         | Such signs are somewhat misleading. it does not mean the
         | restaurant is in urgent need of work. it is more like, we have
         | a position open, please apply. You may be hired, but likely
         | not, as many other people applied for it, and we need someone
         | who can meet our stringent requirements. They may not even have
         | a position open and instead are looking for an ideal employee
         | who meets these criteria, which means someone else may be
         | fired.
        
         | Red_Leaves_Flyy wrote:
         | To me, no education, no experience jobs are the norm.
         | 
         | Does that restaurant pay incoming career food service staff a
         | wage sufficient to raise a family on?
         | 
         | A solid third of the _households_ in the US take in under 50k
         | /yr. More than half that are under 25k. I don't know about you,
         | but 37k doesn't go far.
         | 
         | Assuming 30% effective tax rate that's 2158/mo.
         | 
         | 1 bed flat in my city $1400
         | 
         | Cell phone bill: $100
         | 
         | Home internet: $100
         | 
         | Electricity: $50
         | 
         | Heating: $50
         | 
         | Healthcare: $230* assuming 50% sponsored
         | 
         | Car payment: $400
         | 
         | Insurance: $130
         | 
         | Without including food, dental insurance, deductible, OOP
         | limits, retirement contributions, emergency savings, and
         | anything at all for pleasure I've exceeded my budget. So,
         | please, tell me more about how that's a good wage. How can
         | someone go about improving ones position in life if they're
         | kicked into a world that they'll never be able to afford?
         | Should I go to college as an adult and get into eye watering
         | levels of debt that'll follow me out of bankruptcy to keep
         | bussing tables, like all the people that do just that? How can
         | I juggle my full time job, side hustles at uber and lift (to
         | keep the lights on), and a full course load? There are
         | structural problems in society that no amount of blaming poor
         | peoples bad decisions can wave away. Simple fact is some people
         | with very large waists are going to have to tighten their belts
         | so the millions of Americans whose only mistake was being born
         | poor can have half of a fair chance at success and lead a
         | modest yet dignified existence. There's no incentive for any
         | halfway intelligent poor person to go to college unless they're
         | a glutton for punishment, have a strong $upport network, and
         | massive appetite for risk.
         | 
         | https://www.statista.com/statistics/203183/percentage-distri...
        
           | unethical_ban wrote:
           | I should have been more clear, but I didn't have coffee yet.
           | 
           | $18/hr being "great" was meant to compare to what I hear
           | people tend to make in that position, not that it is
           | objectively great as a living wage for a family.
           | 
           | My post was a little twist-and-turn - I was thinking about
           | two related things, one being the tactical issue of wages in
           | food service, and the other macro issue about the fact that
           | this country has enough wealth in it for everyone to be well
           | taken care of.
        
           | dcolkitt wrote:
           | 30% is _way_ to high an effective tax rate at that income.
           | Below median earners pay effectively zero taxes with the EITC
           | and standard deductible.
           | 
           | $400 is way too high for a car payment. You can get a great
           | used compact for $10k. With decent credit that'll run you
           | $150/month.
           | 
           | $100 is way too high for home Internet. I pay $40/month for
           | 100 mbps, which is more than enough for five decides to
           | stream simultaneously.
           | 
           | $1400 is too high. A low earner should be saving money by
           | getting a roommate. I can easily find rooms for rent in my
           | medium COL metro for $700/month. Heck, I can find one bedroom
           | houses _for sale_ where the PITA mortgage is well below
           | $1400.
        
           | prepend wrote:
           | These are just hypothetical numbers but I think the problem
           | here is that people are resourceful and work to change or
           | reduce these expenses. Everyone's story varies, but it's
           | pretty common to address these with:
           | 
           | Rent- get a roommate or rent a room instead of a one bedroom
           | flat. Rent is reduced from $1400.
           | 
           | Use a prepaid phone plan to reduce from $100.
           | 
           | Use a slower speed or share internet to reduce from $100.
           | 
           | Motorcycle or cheaper car to reduce from $530.
           | 
           | These aren't impossible problems and are things that are
           | really common to deal with. I worked with people in Manhattan
           | who slept three to a bed. That obviously sucks but assuming
           | that every single person should have a one bedroom flat with
           | their own car and luxury internet and phone is not as good an
           | assumption that people will adjust their spending.
        
           | majoram wrote:
           | Thanks man, you really understand. Good post.
           | 
           | It's sad to say, but the pandemic was lifechanging for me.
           | With the unemployment benefits I received, I was able to save
           | up some money and had time for myself to start thinking about
           | what I needed to do before the money disappeared into rent. I
           | applied for the local community college and trying to get
           | financial aid here in California, and if it works out, I'll
           | "only" pay like $3.5k for each of the two years. If they
           | don't give me financial aid, it's time to give up lol. I
           | wouldn't have been able to afford even entertaining this idea
           | before, because all the money disappears into living
           | expenses. The pandemic saved me...the only way for someone
           | like me to get a higher education, is for a global pandemic
           | to happen at 24 years old haha.
        
         | howmayiannoyyou wrote:
         | The bottom 99.9% in America enjoy healthcare, communications,
         | caloric intake, political freedom, public services, education
         | and safety from violence unprecedented in human history. By
         | almost every metric society is better off now than it was in
         | the 1950's, 1800's, etc. The over-focus on the negative propels
         | us toward greater collective good - up to a point. We would do
         | better as a society to revert to a mean that expresses some
         | recognition and gratitude for the progress made. We're sowing
         | the seeds of our own destruction via economic, racial, ethnic
         | and class tribalism.
        
           | pydry wrote:
           | Worse than 20 years ago but sure, better than the 1800s.
        
             | colinmhayes wrote:
             | The existence of smartphones alone makes life much better
             | than it was 20 years ago.
        
               | pydry wrote:
               | Sure, I mean, you might be priced out of a home but you
               | can play flappy birds.
               | 
               | So that's something.
        
               | r-zip wrote:
               | Strongly disagree. The existence of smartphones has
               | accelerated the development of social media, which
               | negatively impacts people's mental health and children's
               | attention spans. Their popular adoption has also driven
               | the growth of disgusting surveillance ad-tech. Blegh. I'd
               | gladly go back to using a Garmin GPS and carrying a Nokia
               | if it meant that we didn't have all the accompanying
               | garbage.
        
           | toiletfuneral wrote:
           | https://www.nbcnews.com/business/business-news/rise-
           | patients...
        
           | cto_of_antifa wrote:
           | I wouldn't really call fighting for living wages for the
           | working poor "economic tribalism."
        
         | Communitivity wrote:
         | I think the problem may be that many companies increase their
         | prices to whatever the traffic will handle for needed items.
         | For example, the $600 cost of epi pens.
         | 
         | "$100 in 1980 is equivalent in purchasing power to about
         | $321.45 today, an increase of $221.45 over 41 years" -
         | Source:https://www.in2013dollars.com/us/inflation/1980 This is
         | a 68.89% decrease in spending power.
         | 
         | For comparison, the minimum wage in 1980 was $3.10, and minimum
         | wage today is $7.25, and increase of 233.87%.
         | 
         | By rights the minimum wage should be able to keep up, with that
         | big of a disparity. The problem is that purchasing power figure
         | takes into account an average over all things. The ten cheapest
         | cars in 1980 all had a base price under $5k (source:
         | https://blog.consumerguide.com/cheapest-american-cars-1980/).
         | Then ten cheapest cars in 2020 were, other than 1 exception,
         | all below $17k (source: https://www.caranddriver.com/features/g
         | 29414710/10-cheapest-...). That's a decrease in spending power
         | for cars of ~70%.
         | 
         | For median family single home in 1980, $55k. In 2020, $300k.
         | (source: https://dqydj.com/historical-home-prices/). A decrease
         | in spending power of 86%.
         | 
         | The majority of the US is facing a huge discrepancy in the
         | decrease of spending power amongst big ticket items, the
         | increasing lease-economy, and unprecedented debt. There is also
         | a sense of entitlement at avoid certain menial jobs in some. As
         | a result a $7.25 minimum wage is not going to cut it, as that's
         | only $14.5k per year, well below the poverty line of $26.2k for
         | a 4 person household (2020). Double it to $15k/hr and you still
         | are just barely above the poverty line, forcing both parents to
         | work full time, or one parent to work two jobs.
        
           | gruez wrote:
           | >For median family single home in 1980, $55k. In 2020, $300k.
           | (source: https://dqydj.com/historical-home-prices/). A
           | decrease in spending power of 86%.
           | 
           | Inflation-adjusted monthly mortgage payments (the _actual_
           | price that matters when it comes to housing) has actually
           | gone down since 1989. This is on top of houses getting
           | bigger.
           | 
           | https://awealthofcommonsense.com/2021/03/what-if-housing-
           | pri...
        
         | MisterBastahrd wrote:
         | $18 for how many hours?
         | 
         | Most "pizza places" will not hire someone full-time. They want
         | part time employees so that they do not have to deal with
         | benefits.
         | 
         | Now, the intelligent thing to do as a nation would be to
         | offload those benefits to the government so that companies
         | would be free of the extra work AND employees would be free to
         | move to better jobs... but America is not the land of the
         | smart.
        
           | OldTimeCoffee wrote:
           | I hear this a lot, but it's really not true. Most "pizza
           | places" are small businesses (<50 FTE), so they aren't
           | required to offer benefits anyway.
           | 
           | They want part time employees because it offers scheduling
           | flexibility. If all you have is full time workers and someone
           | calls out sick, you're short a person. If you have mostly
           | part time workers, you can call everyone not scheduled that
           | day to see if they can come in. Office jobs don't really have
           | this because it's typically not critical that the employee is
           | there.
        
         | cosmodisk wrote:
         | Not sure about the US,but here in Europe,or Britain,to be more
         | precise, many places expect you to do cleaning, serving tables,
         | etc. All this 'joy' for minimum wage+a few pennies more.
         | Apparently all the hospital sector is struggling to hire
         | because people either moved abroad or went into more stable
         | sectors,so now newspapers are plastered with articles how poor
         | restaurants can't hire.
        
         | flybrand wrote:
         | > We watch Star Trek and marvel at their post-scarcity world.
         | We are living in a post-scarcity world now, but all the
         | benefits are being funneled by wage slaves up to the 0.1%."
        
         | cratermoon wrote:
         | > $37k a year in Texas
         | 
         | Where in Texas? On average for the state, that's only a living
         | wage for a single person with no kids.
         | https://livingwage.mit.edu/states/48
        
         | csours wrote:
         | With apologies to William Gibson "The post-scarcity future is
         | already here - it's just not very evenly distributed."
        
           | TimPC wrote:
           | Average Income in the US is $68,703 which certainly doesn't
           | pay a mortgage in most big cities. So I think post scarcity
           | is a tad optimistic. If nothing else there is always going to
           | be a shortage of non-apartment housing where people want to
           | live.
        
         | unyttigfjelltol wrote:
         | Maybe the pizza shop would get a stronger response if they
         | hired permanent workers on an annual $37k salary? An $18/hr
         | wage is not identical....
        
           | ForHackernews wrote:
           | Yeah, $18/hour sounds less appealing if it comes with an
           | unpredictable schedule and uncertain hours from week to week.
           | I used to work retail, and it was rough trying to attend
           | classes not knowing when I might get called in for a shift.
        
           | _wldu wrote:
           | But then they'd have to provide benefits (like health
           | insurance, parental leave, etc.) and treat workers with
           | dignity and respect. In America, that's unlikely to happen
           | without government regulations enforcing it.
        
             | gher-shyu3i wrote:
             | Is it the same for restaurant workers in Europe?
        
             | scotu wrote:
             | to be fair, nowhere that's likely to happen without
             | government regulation where there is profit to be had
             | otherwise.
        
         | colinmhayes wrote:
         | We aren't actually living in a post scarcity world though.
         | We're moving in the right direction, and hopefully we get there
         | soon, but there is still plenty of scarcity.
        
           | toomuchtodo wrote:
           | We would move faster towards post scarcity if businesses were
           | economically incentivized to uptake automation faster (and
           | then we tax businesses [1] to fund social safety nets).
           | 
           | If we continue to encourage an economic system through policy
           | that is satisfied with labor making wages that provides a
           | dystopian poverty level of life quality, it will take longer
           | to arrive post scarcity. Economic incentives matter!
           | 
           | [1] https://blog.samaltman.com/american-equity
        
           | pydry wrote:
           | Worse, a lot of what is considered postscarcity / precursor-
           | to-fully-automated-luxury-communism already in here is simply
           | the US hegemony discount.
           | 
           | And that won't last forever.
        
           | seiferteric wrote:
           | Not even close, maybe if we ignore the obscene externalities
           | baked into everything we consume. This apparent bounty we
           | have today will be short lived in the grand scheme.
        
       | gonational wrote:
       | Timeline of Stupidity                   A: "we should give
       | everyone free money!"         B: "no, that'll make everyone
       | lazy..."         A: "no, people will work on things they love
       | instead!"         [everyone gets free money]         [nobody
       | works, everyone plays video games all day]         A: "see, this
       | proves that everyone was being exploited!"         B: [smh]
       | 
       | Plato's Five Regimes. We're entering the fourth regime.
        
         | petre wrote:
         | Video games are considered e-sports in South Korea and some
         | people do get paid to play them. Imagine a full stadium with a
         | few guys playing games and the audience watching them on big
         | screens.
        
           | gruez wrote:
           | You're technically right in the sense that some people do
           | play video games for a living, but you're still wrong because
           | GP talked about "everyone" playing video games for a living.
           | just like you can't have everyone being
           | actors/writers/musicians, you can't have everyone be esports
           | players. There's only so much attention to go around, and the
           | overwhelming majority is captured by a few at the top.
        
           | luckylion wrote:
           | They don't "play games" in any common meaning of the term
           | though. It's not entertainment, it's work. It's not intended
           | to pass the time, they train long hours to get better. Very,
           | very, very few people do that, because it's not fun, it's
           | work.
        
           | [deleted]
        
         | AlexandrB wrote:
         | Ok, but at some level of automation the number of low-skill
         | jobs will be much less than the number of candidates. When this
         | occurs, what's a viable career path for someone without a
         | College education? Or even someone _with_ a College education
         | that 's no longer relevant/in demand? We already have more than
         | enough bullshit jobs...
         | 
         | Perhaps the answer is to start shortening the work week.
        
         | UnpossibleJim wrote:
         | Do you think that would last? I know I wouldn't be able to sit
         | on my ass and just play video games for very long, even if I
         | got paid or won the lotto, or whatever. My wife wouldn't either
         | (though, we tend to marry our equal - or I hope we do). I'm
         | generally curious as to what percentage of the population would
         | actually sit for their entire lifetime and be stoned, play
         | video games and make nothing for the long term. I realized that
         | there is a percentage that would do this, but do you think it
         | would really be that large? Are my friends group that skewed of
         | a sample?
        
           | paulpauper wrote:
           | It depends on individual preferences. Individuals with a high
           | preference for $ would still go to work, whereas others would
           | play games at home. This could mean higher productivity at
           | work and better customer and employer satisfaction, as people
           | who hate working and hate their jobs and do their jobs
           | poorly, would just play videos games instead.
        
             | UnpossibleJim wrote:
             | I guess, yeah. I might do something a little more creative
             | but similar. It's just hard for me to imagine just not
             | creating something, anything. Lack of imagination on my
             | part, really. I can't imagine that anymore than the
             | argument of "people will just use their checks to buy
             | heroin and be drug addicts". I assume there are a small
             | percent, but it's small. I just assume people would still
             | want to make things for the sake of making things. Just for
             | purpose =/
        
         | somebodythere wrote:
         | It's almost like this happened in the midst of a global
         | pandemic where most people aren't allowed to do the things they
         | would rather do than sit inside and play games...
        
           | throwaway292893 wrote:
           | That's crazy, no. people are lazy and will be lazy if you
           | give them the option.
           | 
           | There's plenty of jobs available. No jobs are unavailable due
           | to covid restrictions.
           | 
           | Burnouts playing video games is not new to the pandemic, the
           | only difference is their pay raise.
        
         | EvilEy3 wrote:
         | You missed the part where you lose "free" money when you start
         | working, genius.
        
       | otagekki wrote:
       | > Current average rental cost for a one-bedroom in Missoula:
       | $1010 a month, up 27% from last year
       | 
       | Pretty expensive for a little town in the middle of nowhere...
        
       | nonameiguess wrote:
       | There are obviously a lot of factors that go into the decision
       | making process of whether you should take a particular job at a
       | particular wage. But at least two are 1) how much you're getting
       | otherwise from other sources, and 2) competition from other
       | sources of labor.
       | 
       | For 2, consider this: https://www.dhs.gov/immigration-
       | statistics/special-reports/l...
       | 
       | New entries in Q4 2020 down 78% from the year before, and that's
       | on top of a general downward trend in net immigration to the US
       | that's been happening for a decade. Is this temporary because of
       | Covid? Probably. But immigration at the low end of the wage scale
       | is a factor that drives down the wages. Anyone who has ever lived
       | in an apartment complex in Santa Ana and seen neighbors with 14
       | people packed into a 3 bedroom apartment understands why. Native
       | born Americans simply aren't willing to live like that. The
       | expectation for what constitutes a baseline reasonable lifestyle
       | isn't the same.
       | 
       | For 1, these comments about "experimenting with UBI" or
       | freeloaders living off the government seem to miss the point that
       | augmented benefits are a temporary pandemic relief measure. Of
       | course the low end of the labor market is abnormally depressed
       | right now. That is on purpose as part of a calculated,
       | intentional public health response making it easier for people to
       | decide not to work. Lo and behold, many are now actually making
       | that decision.
       | 
       | For some reason, there seems to be this widespread notion that
       | this is a permanent change, but it isn't. You're still not
       | technically allowed to just quit or refuse to work because you
       | want unemployment, but go ahead and look at the actual
       | description of what constitutes a Covid-related reason to apply
       | for relief:
       | https://wdr.doleta.gov/directives/attach/UIPL/UIPL_16-20.pdf
       | 
       | If your place of employment was closed, if your kid's school was
       | closed, if you were ever diagnosed, had symptoms, were
       | quarantined, or anyone in your family was, your head of household
       | died, you need to care for some who was diagnosed. None of those
       | are usually reasons you're allowed to claim unemployment
       | benefits. Now they are.
       | 
       | How long will this go on? Who knows, but definitely not forever.
       | This is also the answer to why businesses don't just offer more.
       | Prices are subject to a ratchet effect. Offer more now to
       | overcome the inertia of people choosing to stay unemployed during
       | an abnormally favorable time to be unemployed and you're very
       | likely to have to permanently pay higher wages even when the
       | enhanced benefits are gone. Businesses are getting relief, too,
       | and are willing to gamble that they can wait long enough for
       | wages to come back down.
        
       | [deleted]
        
       | kokanator wrote:
       | Pre-covid businesses which paid borderline wages are going to
       | find it really difficult to compete with the government.
       | 
       | Basically, you have an administration 'silently' waging war of
       | certain types of business or jobs without needing to pass
       | controversial legislation for things like a minimum wage increase
       | or universal income. If it feel subversive, it is. But the cost
       | of controversy these days causes people to find alternative
       | options.
       | 
       | It is now possible to make 130% to 200% your pre-covid
       | salary/wage by being on unemployment. [0] It is generally human
       | nature to do as little as possible to survive. In this case you
       | don't have to do anything to survive. Why would you go look for a
       | job.
       | 
       | This will put large swaths of businesses who could stay afloat
       | pre-covid and were forced to close due to covid to not be able to
       | open their doors again.
       | 
       | [0] https://www.cnbc.com/2020/05/09/it-pays-to-stay-
       | unemployed-t...
        
         | cratermoon wrote:
         | That's a terrible take. The government is not "waging war" on
         | businesses. Businesses that were (are) paying starvation wages
         | simply socialize the costs of doing business. When Amazon's
         | warehouse workers and Wal*Mart retail employees are also
         | collecting SNAP benefits, their employers are getting all the
         | benefits of low wages but - because they don't pay their fair
         | share of taxes - the employers are avoiding the externalities.
         | See "Cheap: This High Cost of Discount Culture"
        
           | kokanator wrote:
           | Note I didn't say whether it was good or bad. These are real
           | things that are occurring.
           | 
           | The government has a long history of subsidizing businesses.
           | Think seasonal businesses that 'lay off' their workforce to
           | collect unemployment until the season opens again.
           | 
           | Sometimes we believe these subsidies are good other times we
           | don't. Do I believe companies as large as Amazon and Walmart
           | should be subsidized? Hardly.
           | 
           | Do I think small businesses of all sort could use a break
           | here and there when faced with the subsidized giants?
           | Absolutely.
           | 
           | Try to go to your local hardware store, it doesn't exist any
           | more. How about the corner grocery, gone. These guys needed a
           | break but we put the screws to them and let the Giant more
           | 'efficient' businesses off the hook.
        
         | treve wrote:
         | This is a good thing. Businesses that rely on paying people
         | salaries that keep them under the poverty line have no right to
         | exist. Your business is exploitative and doesn't deserve to
         | survive.
        
           | luckylion wrote:
           | What do you do with people who don't have any skills that are
           | worth more money? Do you just let the government take care of
           | them perpetually?
        
             | Avshalom wrote:
             | Yes.
             | 
             | We already do that. Many of my coworkers at Target are on
             | medicaid and SNAP and get child care assistance and they
             | will be, perpetually (well not so much the child care
             | part).
             | 
             | We just _also_ make them work until they 're 70+ anyway.
        
               | luckylion wrote:
               | > We just also make them work until they're 70+ anyway.
               | 
               | Or in other words: we make them work. If we didn't we'd
               | still need someone to do the work, only it wouldn't be
               | your current coworkers. And we'd have to tax that person
               | severely, so we have enough money to fund the early
               | retirement of your coworkers. I'm not sure that person
               | will be happy.
        
       | thrower123 wrote:
       | The problem is essentially that you can get paid $X to not work
       | at all, or you can maybe get paid $Y to work some shitty job.
       | 
       | But you can't get the $X that you'd get if you didn't work at
       | all, and add on $Z dollars working a job of some kind.
       | 
       | The perverse incentives of these programs around their phaseouts
       | are and have long been a reality of low-income communities.
        
         | pydry wrote:
         | This is by design. It's a good way to inhibit employees asking
         | for wage hikes.
        
       | Clubber wrote:
       | I think the "life is short," phenomenon that recently occurred to
       | everybody due to COVID is also playing a part. People are
       | thinking, something along the lines of, "I could have died and my
       | gift of life has mostly consisted of working for this shithole
       | company for the last 5 years."
       | 
       | Employers might want to consider hiring more people in smaller
       | shifts. Maybe an extra person and put everyone on 3-4 day shifts
       | rather than 5-6. It'll be interesting if this phenomenon holds.
       | 
       | Of course the US workforce has been constantly squeezed for the
       | last 40 years, so maybe the COVID was the breaking point. No more
       | cheap labor because people are unwilling to live with their
       | parents / not have health insurance. People really mastered how
       | to live cheap over the last year as well.
       | 
       | Make no mistake, COVID was a seismic event in the US economy that
       | will have lasting changes.
        
         | oramit wrote:
         | I agree. Beyond the economic changes that have occurred, I
         | think the social change is going to be even more dramatic.
         | Everyone I know in my social circle has started new things,
         | gone back to school, picked up old hobbies they neglected, or
         | changed jobs. I don't think we are appreciating how radical a
         | change it was for so many people to have months of free time
         | where they had relative financial stability. You start to have
         | time to really think about what you want.
         | 
         | Going forward I think people are just not going to put up with
         | bullshit the way they did before.
        
         | MattGaiser wrote:
         | > Employers might want to consider hiring more people in
         | smaller shifts. Maybe an extra person and put everyone on 3-4
         | day shifts rather than 5-6.
         | 
         | I thought that doing this to avoid providing healthcare was the
         | problem. Many jobs that can't be filled are for part time hours
         | at terrible pay with no benefits.
        
           | Forge36 wrote:
           | This is where a government provided healthcare (as an option
           | or as the only option) can be very beneficial.
        
           | Clubber wrote:
           | I'm not really understanding your point.
        
             | cratermoon wrote:
             | The laws in the US only require companies to provide health
             | insurance and other benefits to full-time workers, usually
             | defined as something over 30/hours a week. If a company
             | hires a bunch of people to work 20-25 hours, they don't
             | have to pay benefits.
             | 
             | The solution, obviously, is to change the law so that any
             | employee, regardless of hours, must get benefits. The other
             | solution, in the US, is to get rid of the antiquated
             | employer-provided private health insurance market and just
             | give everyone health care, the way every other wealthy (and
             | not-so-wealthy) country does.
        
               | Clubber wrote:
               | I didn't mention anything about cutting salary or
               | benefits. If employers are having a hard time finding
               | people, they'll need to step up.
        
             | MattGaiser wrote:
             | Most people need full time work to survive to pay for
             | everything. They need 40 hours of paid work per week as
             | well as health care, a benefit that is usually only
             | provided to full time employees.
             | 
             | Businesses usually don't need 40 hours per person per week,
             | especially for things like restaurants. They also do not
             | want to pay for health coverage. So they offer part time
             | jobs with 20 random hours per week.
             | 
             | To survive, you would need to cobble together two of those
             | jobs and hope that you don't get sick. Or you can hold
             | out/leave immediately as soon as full time work is
             | available.
        
         | the_only_law wrote:
         | Ngl it's got me wondering if I should make some life shattering
         | changes myself.
        
           | Clubber wrote:
           | I've been working professionally for 25 years now. I could
           | take a year off financially, but I'm still shackled by health
           | insurance being so expensive on the private market.
           | 
           | Think about this, when you are on your deathbed, whenever
           | that is. Could be tomorrow, could be in 60 years. What
           | regrets will you have?
        
           | david_allison wrote:
           | Unsolicited advice: dip your toe in the water and introspect
           | after a couple of months to see if it's a sustainable change
           | that you want to make.
        
           | ok_coo wrote:
           | I moved back to rural Midwest and be with and around family
           | and it's made me appreciate them a lot more.
           | 
           | I've thought about why I sacrificed this, by moving away to a
           | big city, just to get an ok paying job with healthcare.
           | 
           | So, I wonder if more people are re-thinking their life if
           | they moved during COVID to be near friends/family during this
           | time.
        
       | lacker wrote:
       | Personally, the pandemic has taught me how little I really need
       | physical stores. Only a few items, like bicycles, shoes, and
       | backpacking backpacks, do I really prefer buying them in a
       | physical store. So for me at least, it would be okay if all these
       | retail jobs went away, and all these retail stores just went out
       | of business, and you just bought everything online.
       | 
       | It seems like it could really be a disaster for people working in
       | retail though. Hopefully those retail jobs would end up replaced
       | by something better, like working in an Amazon warehouse....
        
         | metalforever wrote:
         | I feel the opposite, that people try to rip me off online with
         | nice-looking but ultimately non-durable or non-functional
         | products.
        
         | vishnugupta wrote:
         | > like working in an Amazon warehouse....
         | 
         | They (humans in Amazon warehouse) too are being replaced by
         | robots. Not sure how many people know that Amazon has a
         | robotics division [1]
         | 
         | Like any modern corporation, Amazon is continuously looking to
         | reduce cost and warehouse automation is the next obvious place,
         | by automating most of pick/pack work.
         | 
         | Even in shop experience is getting massively disrupted. At the
         | one end of the spectrum there are self checkout kiosks that are
         | super convenient and popular in the Netherlands and at the
         | other end Amazon Go and similar with zero or minimal personnel
         | running a shop.
         | 
         | These types of jobs are popular among middle to just below
         | middle class youth (high school goers) in order to earn a few
         | bucks and reduce financial burden on their parents. With these
         | jobs getting automated, at least in the developed world, I
         | wonder what'll be those stepping stone type of jobs which are
         | low on skill that need manual labor.
         | 
         | [1] https://www.amazon.jobs/en/teams/amazon-robotics
        
         | disgruntledphd2 wrote:
         | How do you handle buying clothes?
        
           | cratermoon wrote:
           | That's a tricky one, but it's solvable, if you're willing to
           | give up the idea of having new and different styles
           | regularly. Find a style & brand you like, figure out what
           | size you wear and just buy that. You might have to send
           | something back until you nail it.
           | 
           | For people with odd size requirements like me (I'm short),
           | shopping online usually means you can find a better fit,
           | because stores tend not to carry much outsize the most common
           | sizes. Shoes are a great example: A size 7.5 (US) is about
           | the biggest I can wear, sometimes a size 8 if they run small.
           | The "standard" mens size is 9, and you can find lots of
           | styles in size 9 to 11, but rarely anything smaller than 8.
           | Guess what? that shoe _is_ made in 7, but stores don 't carry
           | it.
           | 
           | Sometimes the maker will discontinue a line though, which
           | means a switch. Shoemakers are notorious for this.
        
             | disgruntledphd2 wrote:
             | So yeah, re-buying clothes/brands is fine. But I spent a
             | bunch of money on clothes online and ended up with stuff
             | that is nice, but which feels weird (and with some too-
             | small pockets).
             | 
             | I don't really know how one can solve for these kinds of
             | issues online, even if we could CV together what clothes
             | would look like on people (which is at least theoretically
             | solvable with current technology).
             | 
             | And fwiw, clothes are like one of the things that everyone
             | needs to buy, so online only is almost certainly not going
             | to happen in this space.
        
           | chadcmulligan wrote:
           | My daughter buys clothes online all the time. They have free
           | return now if they don't fit.
        
           | lacker wrote:
           | I just buy them online like anything else, in the same size I
           | always wear. I had already stopped buying clothes in-person
           | before the pandemic. I guess I am normally-shaped enough that
           | I don't run into problems with things fitting this way, but
           | certainly this is more problematic for some people.
        
             | disgruntledphd2 wrote:
             | Yeah, makes sense. My trouble is that I'm in between sizes,
             | so I tend to either end up with too small pants, or many,
             | many belts.
        
       | andreshb wrote:
       | If a business can't pay a living wage, automate the role.
        
         | erhk wrote:
         | And tax the labour that automation provides
        
           | mc32 wrote:
           | Lots of things have been automated over time. What's the
           | cutoff?
           | 
           | Tractors automate things. Email automates things. Computing
           | in general automated things.
        
           | kristjansson wrote:
           | What? No. Automation doesn't need a new tax, it's just
           | capital investment like any other. Tax the proceeds from
           | investment (in automation and everything else) at a rate
           | commensurate with taxes on labor...
        
           | [deleted]
        
         | throwaway292893 wrote:
         | Looking at you California farms.
        
           | nradov wrote:
           | Strawberry picking robots are coming.
           | 
           | https://onlinelibrary.wiley.com/doi/full/10.1002/rob.21889
        
             | throwaway292893 wrote:
             | Those exploited immigrants won't hold their breath.
             | 
             | I'm sure those farms unwilling to pay a fair wage will
             | start investing in those expensive machines' R&D. Then do
             | it for all other crops.
        
               | dehrmann wrote:
               | > farms unwilling to pay a fair wage
               | 
               | Half the blame has to go to consumers and a lack of
               | desire for fair-wage strawberries that cost 2x as much.
        
               | danaris wrote:
               | That would only be true if, when I went to the
               | supermarket, there was a display of strawberries that
               | said over it "Low Low Prices Enabled By Virtual Slavery
               | And Other Worker Abuses!", and another display of
               | strawberries next to it that said "Slightly Higher
               | Prices, But Their Workers Live Well!"
               | 
               | You can't claim the market will resolve things when there
               | is no meaningful opportunity for customers to "vote with
               | their wallets". It requires not only equal access to the
               | two products, but also _full information_ about what the
               | differences are.
        
               | throwaway292893 wrote:
               | No, the full blame goes to the near slave farms
               | exploiting these people.
               | 
               | Raise the prices if you have to and tell the consumers to
               | shove it. Chipotle just did this, farms can do it.
               | 
               | If you can't survive without slave labor don't survive at
               | all.
        
         | paulpauper wrote:
         | automation is expensive. it is not like a company or franchise
         | can just flick on a switch to automate jobs. It has taken
         | millions of dollars and decades to make robots that walk on
         | stirs, let alone do anything that a low-skilled human worker
         | can do.
        
         | qudat wrote:
         | I disagree. Not everyone needs a livable wage (e.g. teenagers)
         | and by removing entry level positions we eliminate the lowest
         | rung of the ladder. This is not a good outcome.
        
           | kesselvon wrote:
           | Why create an incentive to exploit teenagers for profit? Work
           | is work, regardless of if the person being paid is 18 or 81.
           | You're paying for output.
        
           | cratermoon wrote:
           | Unless they want to save money for college. Remember when you
           | could work an entry level job and make enough money to pay
           | for a substantial portion of college?
        
           | riskable wrote:
           | ...but imagine the economic benefits of giving teenagers a
           | living wage. People who have loads of extra money to spend on
           | unnecessary items (because presumably they're not paying for
           | the bare necessities like food and housing).
           | 
           |  _< Gasp! Some might even save some of that extra money for
           | use in the future!>_
        
             | oh_sigh wrote:
             | But they already get a living wage, since for almost all
             | working teenagers, their biggest expenses are usually taken
             | care of by their parents (rent & health insurance).
        
           | pydry wrote:
           | Not a good outcome for employers. Good for everyone else.
        
             | gruez wrote:
             | Where do you think the employers get the money from?
        
               | pydry wrote:
               | Customers?
        
               | gruez wrote:
               | That's the point. Absent any competition (which there
               | won't be, because everyone is subject to the same minimum
               | wage), the cost is fully passed on to the customers (ie.
               | "everyone else"). Therefore your conclusion is incorrect.
        
               | pydry wrote:
               | How is that the point? The studies I've seen tend to say
               | that minimum wage hikes tend to come from profits.
               | 
               | E.g.
               | 
               | https://www.econstor.eu/bitstream/10419/203233/1/16677309
               | 24....
        
               | gruez wrote:
               | In the short term or long term? I skimmed the study and
               | it looks like they only looked at two years? In the short
               | term I can see it happening due to psychological effects
               | like price stickiness, but I'm skeptical that in the long
               | term the trend would hold. As evidence to the contrary:
               | 
               | >Ashenfelter says the evidence from increased food prices
               | suggests that basically all of the "increase of labor
               | costs gets passed right on to the customers."
               | 
               | https://www.npr.org/sections/money/2021/02/16/967333964/w
               | hat...
        
               | pydry wrote:
               | >In the short term or long term?
               | 
               | Wasnt transfer from profits supposed to be impossible in
               | both cases because of competition?
        
               | gruez wrote:
               | Are you talking about how profits shouldn't exist because
               | of competition?
        
               | pydry wrote:
               | I'm talking about your claim that the cost of raised
               | wages would be inevitably passed on to consumers.
               | 
               | I'm sure there's a good reason why employers lobby so
               | hard to keep wages down even when it doesn't affect them
               | in the slightest cos they can just pass the costs on...
        
               | gruez wrote:
               | >I'm sure there's a good reason why employers lobby so
               | hard to keep wages down
               | 
               | Yeah, because demand also drops when prices go up.
               | Whether that's "good for everyone else" is debatable.
               | Fast food? Maybe. Groceries? Probably not.
        
       | AdrianB1 wrote:
       | I see a logical fallacy because I lived in some conditions that
       | are very relevant.
       | 
       | Paying everyone a living wage (last sentence) is impossible; not
       | because 'living wage' is relative - from a city to another, from
       | a country to another, from a person to another (can you live
       | without an iPhone? why not?) - but because increasing wages to
       | that level, assuming you can determine one, will just increase
       | the prices to fit.
       | 
       | My first job was paying $100 and it was about the average in the
       | capital city of my country. 5 years later I was earning $700, but
       | that was just double the average pay. Another 10 years later, a
       | bit over $1000 was above average, but not by much. The salaries
       | grew 10 times, but the prices adjusted about the same rate, at
       | least the price of food, rent and houses: if you pay 10x more to
       | workers, the house will cost 10 times more. If you increase the
       | salaries of many people, you will not increase their standard of
       | living, just create inflation because they will not produce more,
       | it's just their cost is higher and the money value is reduced.
       | 
       | This is the real story of a country with 20 million people. If
       | you increase the wages of the lowest paid, you need to increase
       | to everyone to keep some proportions, otherwise you will pay
       | restaurant cleaners more than teachers or doctors and that is
       | dangerous, ~ 20% of the younger doctors in my country emigrated
       | because at some point their salary after 20 years of tough school
       | was sometimes lower than a driver's salary. If you increase the
       | salary of everyone, that is very soon making all prices to
       | increase at the same rate, changing practically nothing.
        
         | AdrianB1 wrote:
         | And another thing: if you have workers that you cannot pay
         | 'living wages' because they don't produce output to pay them
         | more, automate and leave them on the streets. Do this with all
         | low skilled workers.
         | 
         | Is this what the article is suggesting?
        
         | djfobbz wrote:
         | agreed!
        
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