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

 

White House insists Trump believes Russia still a threat (18 Jul 2018)

 

Jewish nation state: Israel approves controversial bill (19 Jul 2018)

 

Pakistan election: BBC interview with Dawn newspaper boss stirs controversy (18 Jul 2018)

 

Antarctic seabed site gets protection after reporter's submarine trip (18 Jul 2018)

 

Australia overtaking UK for overseas students (18 Jul 2018)

 

The women using traditional make-up as sunscreen (18 Jul 2018)

 

New UK Brexit secretary set for Brussels talks (19 Jul 2018)

 

Court rules South Korea must pay for Sewol victims (19 Jul 2018)

 

Australia PM says Pope must sack archbishop over cover-up (19 Jul 2018)

 

Turkey ends state of emergency after two years (18 Jul 2018)

more »

 

SF Gate

 

EU fines Google a record billion over mobile practices (18 Jul 2018)

 

Facebook keen on robots as the future of AI (18 Jul 2018)

 

Ship traffic, July 19 (18 Jul 2018)

 

Business News Roundup, July 18 (17 Jul 2018)

 

Powell says strong economy will keep rate hikes coming (17 Jul 2018)

 

Lawmakers attack social media’s liability exemption for posts (17 Jul 2018)

more »


Site feed Updated: 2018-Jul-19 00:00