tungwaiyip.info

home

about me

links

Blog

< March 2014 >
SuMoTuWeThFrSa
       1
2 3 4 5 6 7 8
9101112131415
16171819202122
23242526272829
3031     

past articles »

Click for San Francisco, California Forecast

San Francisco, USA

 

Minimum Wage Raise and Gentrification

A poll has shown that there is a strong support for raising the minimum wage in San Francisco by 40% to $15 per hour. I feel mixed about this proposal. On the one hand I like to see most people making more money. They need it to survive in this expensive city. On the other hand, these kind of direct intervention of economic often causes unintended consequences like lower employment, or business exiting to lower cost locations. Strangely in this case I side with conservative Ron Unz's idea that higher minimum wage is a preferred alternative to the reliance on public assistance. Although it is remain to be seem how public assistance can be reduced.

I have some additional concern that a big raise in minimum wage will further intensify gentrification. It is not that the raise will help many people to become middle class, which will be a very good outcome. My concern is that it will heavily impact low end family business. The high cost structure means it will no longer make sense to serve the low end market. The only viable business is to move up market. These days Whole Foods becomes main stream. Philz coffee is bustling selling $4 coffee. On the other hand low end market diminish more and more, to the point that an unassuming dive like Tasty Restaurant actual caught my eyes. My concern is higher minimum wage will just be the final nail in the coffin for low end business.

2014.03.16 comments

 

 

blog comments powered by Disqus

past articles »

 

BBC News

 

Israel election: Netanyahu and rival headed for deadlock (18 Sep 2019)

 

Brexit: Talks 'should not be a pretence' warns Barnier (18 Sep 2019)

 

Inside Afghanistan's 'no-man's land' (17 Sep 2019)

 

Menstrual blood ad complaints rejected (18 Sep 2019)

 

Greta Thunberg to US politicians: 'Sorry, you're not trying hard enough' (18 Sep 2019)

 

Australian hiker rescued after 'carrying' broken leg for two days (18 Sep 2019)

 

Saudi Arabia oil drone attack 'a blow for the world' (18 Sep 2019)

 

Three killed in Monte Carlo-Venice boat speed record attempt (18 Sep 2019)

 

Lord of the Rings returns to New Zealand with Amazon TV show (18 Sep 2019)

 

Ukraine's former national bank chief fears for life after arson attack (17 Sep 2019)

more »

 

SF Gate

 

Ship traffic, September 18 (17 Sep 2019)

 

Cnet Review: These 65-inch TVs are the best (15 Sep 2019)

 

Apple TV Plus is just , but will people pay for it? (15 Sep 2019)

 

Deliveroo ad implying delivery anywhere (even space) is banned in UK (15 Sep 2019)

 

The world wastes tons of food. A grocery ‘happy hour’ is one answer (15 Sep 2019)

 

Executive has plan to turn Spotify into ultimate podcast hub (15 Sep 2019)

more »


Site feed Updated: 2019-Sep-18 03:00