Most fast food workers in California would get a $20 minimum wage next year — a nearly $5 per hour raise — under a deal announced Monday between labor unions and the industry that will avoid a costly referendum on the November 2024 ballot.
But like, how can they milk us for more than we’re able to give?
Yeah, you can charge $100 billion for a studio apartment, but nobody is going to buy it.
The same logic is at play for raising rent. You can’t raise it beyond what people can pay, or else you’ll lose customers and make less money overall.
Not sure why this needs to be explained to you. You think they’re refusing to charge $100 billion for a studio apartment out of the goodness of their hearts? Lol. No. It’s market forces.
The real answer that no one is giving you is this:
Aggregate demand for housing in the area is through the roof, which is why prices are actually rising. If you move out because you can’t pay, there will literally be hundreds, or more, people lined up who can - this incentivizes raising the price because the market can clearly handle it.
But like, how can they milk us for more than we’re able to give?
The logic of the market is that if there’s anyone in the market that can afford it, whether or not you can’t isn’t their problem, it’s yours.
This is one of the basic reasons why wide income inequality is a problem- when the going housing market rate is a measure of what the wealthy people in that market can bear, it creates serious problems for everyone else. For example, the median home in Seattle lists at $800k and that’s not a measure of what the median earner can afford, it’s a measure of what Blackrock is willing to pay to outbid folks earning in the $250k/yr range.
Like someone not understanding that minimum wage workers not being able to afford to live where they work is different than ANYONE being able to live there?
Weird.
“I took micro economics and I think I’m smarter than everyone cuz I’ve never heard macroeconomics exists.”
I’m purely talking about rent prices. Not who and who cannot pay it. Rent is going to be priced to maximize profit. This means as soon as people can pay more, they will charge more.
If an apartment complex sees they can make more money by raising rents above what those making minimum wage can pay, then any minimum wage tenants will be replaced by those with more money.
I wholeheartedly believe everyone who doesn’t understand this is looking at the downvotes first, and logic second.
The amount of nonsense I had to read in this comment chain is appalling. But it just shows me the vast majority of you don’t understand basic economics, yet think you do because you agree with people who are wrong.
You seem to think you understand but again, you’re looking at only micro and not macro. It’s not like there’s one apartment next to McDonald’s where everyone who works there rents. People working minimum wage are taking public transport into the city to get to work because they’re already priced out of city apartments. Rent raises literally constantly, it has nothing to do with minimum wage because those apartments are not reliant on minimum wage workers. Hell teachers can’t even afford to live in LA last I remember. Those on minimum wage can’t afford rent there and just have to travel farther for work and live shittier lives.
People will pay whatever it takes to not be homeless. If that means 75% of my paycheck is going to a shitty apartment, then i have to take on more debt to afford things like food. Landlords will continue to squeeze until something breaks.
But like, how can they milk us for more than we’re able to give?
Yeah, you can charge $100 billion for a studio apartment, but nobody is going to buy it.
The same logic is at play for raising rent. You can’t raise it beyond what people can pay, or else you’ll lose customers and make less money overall.
Not sure why this needs to be explained to you. You think they’re refusing to charge $100 billion for a studio apartment out of the goodness of their hearts? Lol. No. It’s market forces.
The real answer that no one is giving you is this:
Aggregate demand for housing in the area is through the roof, which is why prices are actually rising. If you move out because you can’t pay, there will literally be hundreds, or more, people lined up who can - this incentivizes raising the price because the market can clearly handle it.
The logic of the market is that if there’s anyone in the market that can afford it, whether or not you can’t isn’t their problem, it’s yours.
This is one of the basic reasons why wide income inequality is a problem- when the going housing market rate is a measure of what the wealthy people in that market can bear, it creates serious problems for everyone else. For example, the median home in Seattle lists at $800k and that’s not a measure of what the median earner can afford, it’s a measure of what Blackrock is willing to pay to outbid folks earning in the $250k/yr range.
I mean, I totally agree with what you’re saying.
I don’t think it should be this way, but it is.
Blame capitalism. Maximizing profit, by definition, is doing the least while charging the most.
That’s a very simplistic view and ignores the effect of competition to prevent doing the least
Said effect doesn’t exist, it’s an illusion caused by small insular markets.
Have you ever worked in sales?
Yes, I have. I also have studied economy and finances at a degreed level.
You should know better then
It doesn’t ever even cross your mind that you may be wrong, huh? The true mark of an idiot.
“Credit cards”
You still don’t understand, lol.
Even if people were relying on credit cards to pay, there’s still a limit that landlords would have to price around.
My god. This is why this generation sucks with money, lol. Most of you don’t have a clue what’s going on yet think you’re being clever.
Ahh well.
Removed by mod
Millenia, actually.
Well… if you look at this comment chain you’ll get an idea of how bad it is lol.
Like someone not understanding that minimum wage workers not being able to afford to live where they work is different than ANYONE being able to live there?
Weird.
“I took micro economics and I think I’m smarter than everyone cuz I’ve never heard macroeconomics exists.”
What are you even talking about?
I’m purely talking about rent prices. Not who and who cannot pay it. Rent is going to be priced to maximize profit. This means as soon as people can pay more, they will charge more.
If an apartment complex sees they can make more money by raising rents above what those making minimum wage can pay, then any minimum wage tenants will be replaced by those with more money.
I wholeheartedly believe everyone who doesn’t understand this is looking at the downvotes first, and logic second.
The amount of nonsense I had to read in this comment chain is appalling. But it just shows me the vast majority of you don’t understand basic economics, yet think you do because you agree with people who are wrong.
Sad.
You seem to think you understand but again, you’re looking at only micro and not macro. It’s not like there’s one apartment next to McDonald’s where everyone who works there rents. People working minimum wage are taking public transport into the city to get to work because they’re already priced out of city apartments. Rent raises literally constantly, it has nothing to do with minimum wage because those apartments are not reliant on minimum wage workers. Hell teachers can’t even afford to live in LA last I remember. Those on minimum wage can’t afford rent there and just have to travel farther for work and live shittier lives.
So… where do people working minimum wage live? Do they own their property?
If not, whoever they are paying will able to extract more money from them if they have more money to give. This isn’t even exclusive to rent.
It’s a very simple concept, and it’s sad this needs to be spelled out for you.
I genuinely believe you are twisting your brain in knots to find ways to agree with the crowd.
Yeah, I’m incredibly confused here. You are talking first week of Econ 101 stuff here and people somehow think your points are debatable? Jesus.
From the looks of it, you ONLY have the knowledge of said “first week of economy 101”.
People will pay whatever it takes to not be homeless. If that means 75% of my paycheck is going to a shitty apartment, then i have to take on more debt to afford things like food. Landlords will continue to squeeze until something breaks.