Yes, but one way is on the company first and one isn’t. Would prices go up if these places were paying living wages? Most likely. Many businesses would be insolvent because their business model was simply never designed to pay a living wage to employees. Others could remain solvent, but probably not if they continue to take so much off the top at higher positions.
And that’s exactly it: the market never self-corrects if we throw arbitrary money in excess of listed prices to solve was is ultimately an issue of business solvency and ethics. There is no economic theory that would support such an idea in any industry, but here we are.
The sheer number of businesses out of the space might even drive down rents. That’s the kind of thing I mean by “other actions”. But things cannot continue as they are.
None of this is even to mention the sheer number of people in the service industry who are also on government assistance programs. They have to be – none of the blame is on them. But my tax dollars go to that, plus I am expected to pay extra to subsidize their wages with tips. I effectively subsidize them twice while someone reaps the rewards on their yacht. All I’m saying is the yacht people should be taking the risks first. That’s part of being a business owner.
Dude, everyone understands the tipping system, the market isn’t gonna correct if it goes away because you’ll still be paying the exact same amount.
I’m not sure what isn’t getting across here.
Customers subsidize wages with tipping. The amount is ultimately arbitrary and allows business owners to avoid costs.
The actual cost of the wages is not arbitrary and should be put up by the business first.
Dude, everyone understands the tipping system
This is not true. I’ve visited the USA multiple times and I’ve gotten tipping wrong every time.
the market isn’t gonna correct if it goes away because you’ll still be paying the exact same amount.
This is also not really true. You look at a menu in Australia and the price you see is the exact amount you pay. $20 lunch is $20 on the bill. No added tips or taxes or anything.
For the customer, this system is better.
Saying that same lunch in the USA would ‘have been $14 on the menu in the USA’ would not match my experience. In fact, prices for most things were in the same rough ballpark once the exchange rate was factored in.
Caveat: my last visit was 10 years ago. My experience may be out of date. 15% was considered a normal tip, then.
I’m sorry you’re a moron, and I don’t take financial advice from people who can’t figure out something as simple as tipping protocol. And quit lying, food is definitely cheaper on average in the states, and greater quantity too.
