[HN Gopher] Applebee's exec urges using high gas prices to push ...
       ___________________________________________________________________
        
       Applebee's exec urges using high gas prices to push lower wages,
       sparks walkout
        
       Author : Geekette
       Score  : 300 points
       Date   : 2022-03-24 20:33 UTC (2 hours ago)
        
 (HTM) web link (www2.ljworld.com)
 (TXT) w3m dump (www2.ljworld.com)
        
       | nostromo wrote:
       | Ethics aside, this is bad analysis.
       | 
       | Gas prices putting financial stress on Applebee's employees will
       | also put financial stress on Applebee's customers, who may cut
       | spending on things like going to Applebee's.
        
         | crackercrews wrote:
         | I agree they may need to cut their prices. How would this email
         | have been received if it had said:
         | 
         | We are facing headwinds and may need to cut prices
         | 
         | To stay viable this means we need to cut costs
         | 
         | One way to do this is offer lower starting wages. Though this
         | wasn't viable in the recent past, it may be possible now.
         | That's because our pool of workers are feeling pinched and may
         | need to pick up extra jobs
         | 
         | I understand he does not talk about the need to tighten the
         | belt on prices in his email. But obviously all restaurants have
         | been under pressure with COVID and inflation. It may be
         | understood by the recipients that they need to cut costs
         | wherever possible.
        
           | munk-a wrote:
           | I think _maybe_ workers would be receptive to this if it
           | weren 't for the fact that whenever there's plenty of cash
           | going around it doesn't loosen the belts of workers - it just
           | gets dumped into BS like stock buybacks.
           | 
           | You can't ask for grace when you offer none.
        
           | MisterBastahrd wrote:
           | Wages have been going up for restaurant staff, not down,
           | because nobody wants such a high-stress, low-quality job.
           | Offering lower starting wages will end up with reduced staff
           | and burnout.
        
           | Traster wrote:
           | The core line of logic "We can pay our workers less, because
           | our workers are more desperate" never gets any better. It's
           | one thing to say they're going to pay less because the
           | business isn't viable at these levels of pay, but extending
           | that to "so we're going to focus on who we can exploit" is
           | where it crosses the line. Becuase if the reason you're
           | cutting wages is that you can't afford them... well, let's
           | start with that big fat juicy CEO bonus.
        
         | jasonhansel wrote:
         | It will also force employees to look for higher-paying jobs,
         | potentially causing them to leave if Applebees doesn't raise
         | its pay. Normally inflation is associated with higher wages,
         | not lower ones.
        
           | gruez wrote:
           | >It will also force employees to look for higher-paying jobs
           | 
           | ...implying they weren't already doing so? I'm not sure about
           | you, but I don't think applebees is the type of place you
           | stick around for "the good work culture" or whatever.
        
             | wahnfrieden wrote:
             | I think you overestimate the mobility of a lot of these
             | people. For many it will push them out of work if the wages
             | stop covering the costs
        
               | gruez wrote:
               | Shouldn't it be _easier_ to look for new jobs if you have
               | a financial buffer? If anything being more pinched = >
               | more time being stressed out and/or more time at work
               | (trying to rack up OT) => less time/energy to spend
               | looking for new jobs.
        
           | ashtonkem wrote:
           | In fact, high transit costs might make low paying jobs like
           | Applebees completely untenable. Why take a job if the cost of
           | getting there is higher than what they pay?
        
       | archhn wrote:
       | These chain restaurants have always freaked me out. I know most
       | of the people working there are at the bottom of the barrel, but
       | their job forces them to feign a cheery demeanor. It's like
       | underclass hell--imo.
        
       | sosodev wrote:
       | It's interesting because I'm sure many executives think these
       | things. They just aren't dumb enough to put it into writing.
        
       | karmasimida wrote:
       | I don't understand the reasoning.
       | 
       | If the inflation is up, why won't the employees demand more wage
       | to cover the rising cost? It isn't like Applebee is a high-sought
       | after career, isn't it?
        
         | colinmhayes wrote:
         | Economic analysis has shown the low skill labor market has
         | monopsony power.
         | https://journals.sagepub.com/doi/abs/10.1177/103530462110424...
         | This means the workers at applebees don't have much leverage to
         | demand higher wages. Their options are accept a shitty job or
         | don't work. This manager believes higher gas prices will force
         | them to shift towards the "accept a shitty job" part of the
         | spectrum.
        
           | savanaly wrote:
           | Based on the abstract you are overstating the conclusions of
           | that paper to a ridiculous degree.
        
         | bladegash wrote:
         | Think the premise is that people who work there don't have many
         | alternative options other than continuing to work for them. In
         | addition, greater financial pressures presumably contributes to
         | forcing them to remain employed where they already are.
         | 
         | These are not employees who get paid time off and can take days
         | off to go looking for other jobs/interview.
         | 
         | Meaning any time they take to find another job might be eating
         | into their finances even more, and really be more of the same
         | (e.g., another restaurant).
        
         | _jal wrote:
         | The core idea is the more desperate people are, the lower you
         | can push their wages.
         | 
         | Same reason exploitive employers oppose increasing the minimum
         | wage, single payer, etc. Keeping people wretched means a steady
         | supply of new bodies if the ones you're employing start
         | thinking they can negotiate.
        
           | karmasimida wrote:
           | Currently it is definitely not a good time for those
           | employers to talk about slashing wages or adding up hours,
           | when there is literally a labour shortage in US.
           | 
           | The talk to exploit the high gas prices to their benefits
           | sound nothing but delusional.
        
         | fundad wrote:
         | That's your BS detector tingling, they're making up any reason
         | to pay people less and keep more money.
         | 
         | Alternatively, they're projecting more people will need second
         | jobs and take the lower wages if offered.
        
       | crate_barre wrote:
       | Is it better that this was said or left unsaid?
        
         | aluminussoma wrote:
         | Exactly. He is not the only person thinking this; he was just
         | the only one who put his thoughts on paper. I remember when
         | American capitalism was about succeeding by making other people
         | successful. This kind of business - succeeding by sucking the
         | blood out of your employees - should never be tolerated.
        
           | freeone3000 wrote:
           | When, exactly, was American capitalism about anything other
           | than extracting maximal value from labor?
        
             | rpmisms wrote:
             | Henry Ford, capitalist extraordinaire, famously paid his
             | workers $5 a day, double the average automaker's wage at
             | the time. This extracted maximum value from said labor.
        
               | gruez wrote:
               | I know the popular story is that:
               | 
               | 1. pay workers extra (ie. above the market rate)
               | 
               | 2. workers are richer now
               | 
               | 3. they use that money to buy the stuff you make
               | 
               | 4. ???
               | 
               | 5. profit!
               | 
               | Has this actually been studied empirically? If you had to
               | choose between paying your workers $1000 more and
               | pocketing it, surely the latter option is the better one?
               | Sure, they might use some of that money to buy your
               | product, but they're not going to spend all of it, and
               | after your own costs (eg. cost of goods sold), you're
               | going to end up with less than $1000? How is that
               | extracting "maximum value from said labor"?
        
       | CobrastanJorji wrote:
       | What an odd letter.
       | 
       | > Besides hiring employees in at a lower wage to decrease our
       | labor ( when able ) make sure you have a pulse on the morale of
       | your employees...Do things to make sure you are the employer of
       | choice. Most importantly, have the culture and environment that
       | will attract people.
       | 
       | This is kind of amazing. Surely they know that the culture and
       | environment that will attract people will be the one that pays
       | better, right? The only thing more amazing is that some brown-
       | nosing sycophant managed to call it "words of wisdom" without
       | vomitting.
        
         | shadowgovt wrote:
         | > Surely they know that the culture and environment that will
         | attract people will be the one that pays better, right?
         | 
         | No, it's the one that offers the most perks, like foosball
         | tables and microkitchens. Ask any successful Silicon Valley
         | startup. /s
        
           | giraffe_lady wrote:
           | This is the restaurant industry so it's more on the level of
           | like, the one that lets you take an unpaid day off every once
           | in a while.
        
             | lotsofpulp wrote:
             | These are businesses that operate on single digit profit
             | margins. And are easily replaced by eating meals at home.
             | They either find a way to procure cheap labor, or shut
             | down, because Applebees clientele do not really have the
             | will or ability to spend more at Applebees.
        
       | darknoon wrote:
       | I appreciate the quote from corporate: "We are still scratching
       | our head about what this gentleman was thinking."
        
       | bremac wrote:
       | As much as I am not a fan of Applebee's, the article title on HN
       | should probably be fixed. The executive who sent the email works
       | for Apple Central, a mid-sized franchisee with less than fifty
       | locations. They do not work for Applebee's itself, nor do they
       | represent a major franchisee. (Though in this case, it sounds
       | like their views aren't even representative of their own
       | franchise.)
        
       | rdiddly wrote:
       | And then he suggests doing things _"...to make sure you are the
       | employer of choice."_ - LOL
       | 
       | So if your Chotchkies franchise is in the middle of a wasteland
       | where nobody can walk, bike, or take the bus to work, and then
       | gas prices go up, doesn't that mean people need, y'know, _more_
       | money? Won 't they be looking for _higher_ wages? Paying less
       | just makes other employers look better and positions you to
       | capture exactly zero of the supposed new growth in the applicant
       | pool. Even _not working at all_ (i.e. not driving to a job) gains
       | a few preference points compared to working at your Flingers.
       | Seems like when they were handing out brains, this guy thought
       | they said trains and said  "gimme a slow one."
        
       | vmception wrote:
       | This local franchise executive is an economist?
       | 
       | From reading the full email it seems like just one sentence
       | lacked tact, only _maybe_ inaccurate, and the rest was ....
       | decent management? Like the part about making schedules for
       | employees further in advance so they could accomodate their other
       | jobs? That 's pretty good.
       | 
       | The part about what employment trends will look like due to gas
       | prices and competing employers having to shut down? _Is that
       | inaccurate?_
       | 
       | Mentioning directly to offer lower wages, didn't have to be
       | mentioned... _that way_.
       | 
       | Do I like that the managers walked out over that? Absolutely
        
       | [deleted]
        
       | tyingq wrote:
       | A walkout at one franchise, though I suppose the press value is
       | helpful.
        
       | [deleted]
        
       | rileyphone wrote:
       | Title is wrong, wasn't a corporate executive but instead "Wayne
       | Pankratz, executive director of operations for Applebee's
       | franchisee Apple Central LLC", from franchisee that has 47
       | locations, out of 1787 total. In conclusion, this was corporate
       | sabotage by Chili's.
        
       | [deleted]
        
       | metadat wrote:
       | > Wayne Pankratz, executive director of operations for Applebee's
       | franchisee Apple Central LLC.
       | 
       | > "The advantage this has for us is that it will increase
       | application flow and has the potential to lower our average wage.
       | How you ask?
       | 
       | > "Most of our employee base and potential employee base live
       | paycheck to paycheck. Any increase in gas price cuts into their
       | disposable income. As inflation continues to climb and gas prices
       | continue to go up, that means more hours employees will need to
       | work to maintain their current level of living."
       | 
       | Just wow, what a soulless scumbag.
       | 
       | Not that I ever went to Applebee regularly, but seeing as how
       | this is the kind of person the organization promotes, I will
       | never return. I'd even rather starve. Utterly disgusting.
       | 
       | Thank goodness for HN today, because with this broadcast I know
       | that by tomorrow or the next day the news feeds will be awash
       | with this story.
       | 
       | Is it just one worm, or is this Apple is rotten to the core?
        
         | nvahalik wrote:
         | I think one of the overlooked pieces of the email is on the
         | second page. I read it yesterday so my memory isn't super
         | fresh. But he essentially says that:
         | 
         | * they've been hiring people at $18-20/hr
         | 
         | * the government pandemic aid/unemployment is dropping off and
         | therefore they are no longer "competing with the government"
         | 
         | I think a lot of the "progress" with increasing wages was
         | artificially inflated by government overspending of
         | unemployment and COVID benefits. The people out there looking
         | for jobs were in a sellers market. They could get a better rate
         | because people were staying at home because "they could make
         | more on unemployment". Now we're moving back to a buyer's
         | market as that runs out and people are forced to re-enter the
         | workforce.
         | 
         | While I think we can agree what he is saying here is cold, he
         | has an interesting point. Ultimately the government is
         | responsible for this and it will be interesting to see how it
         | impacts wages and the mid-terms given what inflation is doing.
         | 
         | Personally, it seems like we are in for a "correction" in the
         | labor market where we will see wages go down since more people
         | _need_ jobs and aren't relying on government handouts. But I
         | think he's mainly pointing out that the wages were artificially
         | high and are going to lower back down. Perhaps to $12-15 an
         | hour? Who knows.
        
           | Schroedingersat wrote:
           | Seller's market is a funny way of saying they're not being
           | held hostage for their lives.
        
             | seneca wrote:
             | > Seller's market is a funny way of saying they're not
             | being held hostage for their lives.
             | 
             | Sorry, are you saying that expecting people to work to meet
             | their own needs is them being "held hostage for their
             | lives"?
        
               | dlp211 wrote:
               | When they are denied the opportunity to easily obtain
               | better positions through structural roadblocks, I would
               | to an extent say this. At a minimum I would say that they
               | are being exploited.
        
           | mym1990 wrote:
           | I think thinking through the economics of the situation is
           | one thing, but voicing it to the people you employ is a bit
           | different.
        
             | nvahalik wrote:
             | I come at this from probably a different perspective. A
             | close family member has been having problems hiring people
             | recently.
             | 
             | People want to make a minimum of $15/hr. For some small
             | businesses this is a hard ask. But it's complicated further
             | by the fact that many of the people they have hired have
             | walked out when they got busy. Basically, they want to be
             | paid to sit around and do the minimum amount of work
             | possible. All the while not realizing that the person who
             | is employing them is just barely more than they are (and
             | bearing the brunt of bad months by making less).
             | 
             | So personally, I know that many small business owners are
             | definitely hoping that the market changes so that they can
             | hire not only quality people but at a rate that makes more
             | economic sense.
             | 
             | In this case, this isn't some super-specialized job, it's
             | just a job with high variability in load and requires
             | (sometimes) long hours doing tedious (but not physically
             | demanding) work.
        
               | jhgb wrote:
               | > For some small businesses this is a hard ask.
               | 
               | On that note, I've seem someone remark that some business
               | owners apparently believe that "don't buy things you
               | can't afford" applies to everyone but them.
        
               | HarryHirsch wrote:
               | Perhaps start lobbying for affordable housing and labour
               | rights. Right now, the only kind of leverage that workers
               | have is to leave, and they are doing just that.
        
               | mym1990 wrote:
               | I am not suggesting that the owners try to make the
               | economics work in an impossible way that makes them go
               | out of business, I know the uncertainty in this
               | environment is making things very difficult. But while
               | owners can look at aggregate data, a single worker is
               | looking at this as a way to survive until tomorrow. They
               | don't want to be made into a statistic, so the owners
               | should keep that to themselves.
        
         | ch33zer wrote:
         | OK, agree with the sentiment but:
         | 
         | > I'd even rather starve
         | 
         | A bit dramatic don't you think? Hyperbole and outrage doesn't
         | usually make for productive conversations.
        
           | dvtrn wrote:
           | Fasting as a form of protest is now "hyperbole", is it?
        
         | daenz wrote:
         | Aside from the fact that this person is a soulless scumbag, how
         | do you ever even get to the position of executive director
         | without realizing what a toxic and abusive attitude that is and
         | should never ever be expressed by anyone in his position? Did
         | he think that what he said was smart business sense? Is he that
         | disconnected from the average employee? I just don't understand
         | how it made it past all of the ethical filters that someone in
         | a leadership position should have, and how that failing never
         | manifested itself sooner.
        
           | conductr wrote:
           | I've been at executive level for a decade or so and am
           | honestly not surprised at all.
           | 
           | 1) their main job is "be strategic" and as such they throw
           | out all kinds of horrible ideas to improve the normal
           | business metrics / profitability. In healthcare, I hear
           | things that clearly and obviously would worsen patient care
           | and the line "let's run that by Clinical" essentially means I
           | really doubt that idea deserves consideration.
           | 
           | 2) they've been hit with a multitude of problems. Rising
           | wages is certainly the hottest topic since they were
           | furloughing people in 2020. They begrudgingly raised menu
           | prices. It continues to puzzle them where all the labor went?
           | 
           | 3) as much as I hate to admit it, there might be some truth
           | to the point he's making regarding gas prices. I'd never put
           | that in writing, but it happens and is rather normalized
           | behavior.
        
           | kirykl wrote:
           | Happens all the time. Steve Jobs had several non poach
           | agreements which both lowered wages and lowered attrition
        
           | tablespoon wrote:
           | > I just don't understand how it made it past all of the
           | ethical filters that someone in a leadership position should
           | have, and how that failing never manifested itself sooner.
           | 
           | Ethical filters? They're probably less likely than you think.
           | There's a not-uncommon idea that the _sole_ ethical
           | obligation of a business is to make money for its
           | shareholders, and this soulless scumbag seems to be thinking
           | that way.
           | 
           | This guy's professional mistake probably just saying the
           | quiet part loud, not so much thinking what he did or acting
           | on that strategy.
        
         | wahnfrieden wrote:
         | This is the economic model they operate within. It's dangerous
         | to paint systemic issues as bad individual actors because it
         | gives false relief when individuals happen to appear dealt with
         | or reformed but the structural issues and powers remain. See
         | for example the false relief of On the Waterfront's ending (an
         | incredibly and subversively anti-worker film for this reason)
        
           | watwut wrote:
           | I mean, yes.
           | 
           | But also, these people do have a choice. They could work
           | elsewhere, they could be more ethical. It is more that the
           | system picks and rewards people like this.
           | 
           | What is often forgotten are many people who reject positions
           | and situations and systems like this. And work elsewhere, for
           | less money and less power, because they made active choice to
           | not be like this.
        
             | [deleted]
        
             | wahnfrieden wrote:
             | Does not sound like a structural solution to me
        
           | happytoexplain wrote:
           | It's both. There's a tendency to excuse bad behavior because
           | they "have to" due to systemic forces, but the system does
           | not have them at gunpoint. Businesses in this system can and
           | do survive without being ruthless and amoral right up to the
           | edges of legality, even when they don't reap the rewards of a
           | positive image because they decline to publicize such small
           | integrities. You're right, however, that the system is the
           | bigger problem.
        
         | bin_bash wrote:
         | It seems you're mixing up Applebee's and the franchisee that he
         | works for--Applebee's never promoted him.
        
         | toomuchtodo wrote:
         | Offtopic: These people are everywhere, which is why policy
         | guardrails to defend against sociopaths is so important.
        
           | colpabar wrote:
           | To put this another way: any argument that boils down to "the
           | free market will solve it" is complete bullshit because it
           | doesn't account for these people.
        
             | nightski wrote:
             | Theoretically it would (and actually we are seeing that
             | unfold now in the great resignation). With competition
             | people aren't forced to work at Applebees. In fact it's a
             | great time to be looking for work right now.
        
           | profile53 wrote:
           | Agreed. One of the things that surprised me the most working
           | in healthcare was how many people have a flagrant disregard
           | for anything but self interest -- even human life. Sadly the
           | policy mechanisms have failed to keep these people out.
        
             | metadat wrote:
             | Yes, I've been appalled by the pervasivness of the self-
             | interest mentality throughout healthcare.
             | 
             | Anecdotally, Kaiser is easily the worst offender, not even
             | trying to hide it.
        
           | aerovistae wrote:
           | Not off-topic. Strictly on-topic.
        
           | HarryHirsch wrote:
           | And now you know why everyone talks so loudly about property
           | rights - to have people think that they are the only kind of
           | right that needs protection.
        
         | [deleted]
        
         | dominotw wrote:
         | > how you ask?
         | 
         | prbly thought he came up with a genius insight
        
         | user3939382 wrote:
         | My open letter to Wayne would read: your food sucks, the
         | portions are small, and your prices are high. The service is
         | hit-or-miss at best.
         | 
         | You've bean-counted this chain into the ground, maybe spend a
         | little less time looking at financial tricks on your balance
         | sheet and a little more figuring out how you can make food
         | people want to eat at a reasonable price.
        
           | mym1990 wrote:
           | I can hardly blame the hit-or-miss service when you have to
           | worker under management like this.
        
       | glitchc wrote:
       | Why do folks like this always end up with a sleazy-sounding name?
       | It can't be a coincidence.
        
       | Fargoan wrote:
       | Is this even real? I saw it posted on r/antiwork and it sounded
       | fake.
        
         | fundad wrote:
         | Right, What are the odds some regional manager is actually
         | putting this out? An investment banker would predict more
         | people taking second jobs as expenses rise and charge a lot for
         | the information. It takes analysis, skills, a budget...
        
       | endisneigh wrote:
       | I wonder what the USA would look like if minimum wage was defined
       | as; two people being able to afford a 1 bedroom apartment within
       | a 1 hour drive without traffic.
       | 
       | The static (both in the nominal and inflation adjusted sense) for
       | minimum wage doesn't make sense imo. Minimum wage should be tied
       | to some level of living (not necessarily a great living, but
       | _something_ )
       | 
       | This guy smh
        
         | wernercd wrote:
         | That idea ("1 bed room within 1 hour") is simplistic when you
         | consider places like CA that have NIMBY brigades and huge
         | amounts of red-tape making housing needlessly limited driving
         | up prices with bad leadership.
         | 
         | Hard to feel super supportive of massive changes to min-wage
         | for places that literally make affordable housing impossible.
         | 
         | Growing population + massive regulation + NIMBY = you're gonna
         | have a bad time.
         | 
         | Increasing minimum wage without fixing other issues is a ticket
         | to non-solutions.
        
         | throwaway0a5e wrote:
         | > if minimum wage was defined as; two people being able to
         | afford a 1 bedroom apartment within a 1 hour drive without
         | traffic.
         | 
         | It would implode or we would adjust our standards in every
         | other area to make it happen. We are simply not rich enough to
         | afford that for everyone the way things are currently
         | structured.
        
         | sg47 wrote:
         | You should also add 'with one job per adult family member under
         | 65'.
        
         | deegles wrote:
         | A better method is to give everyone a universal basic income
         | enough to afford a place to live and to eliminate the minimum
         | wage. That way jobs would have to pay what the job is worth to
         | people, not amounts that create a poverty trap.
        
           | vsareto wrote:
           | The real estate industry would need significant overhauls
           | before tying it to UBI. A minimum wage increase based on
           | inflation would be vastly easier to get done politically in
           | the US and even that bare minimum still hasn't happened yet.
        
         | bo1024 wrote:
         | A universal basic income would have some advantages over a
         | minimum wage. Minimum wage interferes with supply and demand in
         | the labor market, which is why some economists dislike it. UBI
         | moves the supply curve to a different place, but it allows
         | those principles to function.
        
           | glitchc wrote:
           | 1) UBI is not UBI unless everyone gets it.
           | 
           | 2) Any income surplus generated by UBI is rapidly consumed by
           | middle people and rent-seekers. That's how we get inflation.
        
             | tacitusarc wrote:
             | I do not understand what you are trying to convey through
             | either of these points. Would you mind clarifying?
        
               | ars wrote:
               | He's saying that if everyone has extra money, then
               | everyone can afford higher prices.
               | 
               | Since they can afford higher prices, people will charge
               | those higher prices. And you are back where you started.
        
           | xwdv wrote:
           | UBI won't do anything I'm afraid, that experiment already
           | failed during the pandemic and now we have massive inflation
           | across all assets.
        
             | cortesoft wrote:
             | Umm, there might have been a FEW confounding factors during
             | the pandemic that makes the conclusion not as clear as
             | that.
        
             | tasty_freeze wrote:
             | It is very tempting to draw a straight line between
             | something you don't like and some other event that is
             | negative and declare causation.
             | 
             | Do you really think this is what is causing inflation?
             | Perhaps there are other facts, such as trillions of dollars
             | of almost zero interest money injected since 2008, massive
             | tax cuts for highly profitable companies (eg AAPL) that
             | result in great payouts to people who are already paying
             | low taxes (long term capital gains), complex interacting
             | forces that moved the cost of a barrel of oil from a low of
             | $20 to over $100?
        
           | bogwog wrote:
           | UBI could allow the elimination of minimum wage entirely,
           | along with a ton of other scattered welfare programs that
           | have lots of administrative overhead and the typical
           | middleman industries that leech off of government programs.
           | 
           | It's a no-brainer!
        
             | njarboe wrote:
             | Most people working for minimum wage (and probably most
             | people in general in the US) work pay check to pay check
             | (like the Applebee's manager stated in the article). They
             | max out their available credit so that the interest takes
             | up all of the possible slack in their income. Under UBI how
             | to you prevent people from now borrowing more money
             | (spending it on a vacation, clothes, fancier car, etc.),
             | paying all the UBI as interest and ending up back in the
             | same financial situation they were before. I don't think
             | UBI solves peoples financial problems. I think Thomas
             | Paine's idea of getting a large lump sum when reaching the
             | age of maturity has some merit. Maybe a manditory two year
             | service in the military or other government org after high
             | school and then they receive a large chunk of money to
             | start their life ($200k or something like that). The person
             | could spend it on school, start a business, down payment on
             | a house, wedding, etc. Having classed in high school
             | discussing what one should do with that money would be a
             | great way for students to think about the future and in a
             | positive way.
        
         | dlbucci wrote:
         | Or, you know, have a Cost of Living/Inflation adjustment every
         | year. That's such a simple idea to me and it's sort of insane
         | to me that not only is that not something that happens, but no
         | one seems to be even suggesting it (or at least, no politicians
         | are campaigning on it). Hell, adjusting the 70's minimum wage
         | to today's dollars puts it at like $24, so just hearing that, I
         | don't know how it shouldn't be around there today, but people
         | talk about $15 like it's crazy.
        
           | frumper wrote:
           | Maybe a source? I was curious and using federal minimum wages
           | from either 1970($1.45/hr) or 1979($2.90/hr) would yield less
           | than $12/hr. I know you can contest how inflation is
           | calculated, or use shadow stats, but then you're getting into
           | murky waters. The official numbers are no where near the
           | claim of $24/hr though.
        
             | throwbigdata wrote:
             | Please don't confuse the socialist agendas with evidence or
             | data.
        
         | boredumb wrote:
         | Would probably look like everyone working for the same dozen
         | companies.
        
         | PhileinSophia wrote:
        
         | Grollicus wrote:
         | There'll be a bunch of cheap singular apartments spread all
         | over the US - let's for convenience's sake assume they're about
         | a one hour drive apart from each other but that's a totally
         | random number of course.
         | 
         | You can rent them for very cheap but just as you're about to
         | move in they suddenly become unavailable for whatever reason?
         | Probably the owner lost their keys or something and then
         | lawyers can argue for years if the owner is actually required
         | to hand over the keys. Or maybe the apartment has no way to
         | enter and lawyers can now argue for years if an apartment needs
         | to have a door?
         | 
         | At least that's what I can imagine would happen.
        
           | tshaddox wrote:
           | > You can rent them for very cheap but just as you're about
           | to move in they suddenly become unavailable for whatever
           | reason?
           | 
           | I mean, presumably in this hypothetical situation we wouldn't
           | want to simultaneously dissolve basic renter's rights.
        
             | glenstein wrote:
             | Yeah, and this is the trouble with trying to get people to
             | engage with hypotheticals on the internet in thoughtful
             | ways.
             | 
             | The usual formula for any engagement with hypothetical
             | ideas is for it to be reflexively dismissed with a "that'll
             | never work" response. Most of the time I think this is the
             | instinctive friction we feel at being asked to engage with
             | a new idea, and saying that'll never work for [insert
             | reason] is intended not to express a counter-argument so
             | much as it is to reject the invitation to participate in
             | the exercise.
             | 
             | But even in the genre of "that'll never work" responses,
             | this one is uniquely strange. Normally the "that'll never
             | work" response suggests that there's some obstacle that
             | arises as a consequence of the change to the status quo.
             | But here, it's just a list obstacles that aren't connected
             | to any underlying principle. It doesn't even feel like the
             | usual "that'll never work" response.
        
             | wedowhatwedo wrote:
             | You obviously don't live in Indiana....to think there are
             | basic renter's rights. That would be a huge win.
             | 
             | I'm only slightly kidding. The Indiana legislature was "too
             | busy" to consider a renter's rights bill this year. They
             | were busy trying to "solve the problem" of transgender kids
             | playing on sports teams in schools. That's obviously way
             | more important than lower income people having affordable,
             | safe places to live.
        
           | tablespoon wrote:
           | >> I wonder what the USA would look like if minimum wage was
           | defined as; two people being able to afford a 1 bedroom
           | apartment within a 1 hour drive without traffic.
           | 
           | > [imagined nonsense rules-layering]
           | 
           | That won't happen for two reasons:
           | 
           | 1. It requires a massive conspiracy.
           | 
           | 2. Any law like the GP describes would most likely be written
           | to block off the exploits that it took you five minutes to
           | think of. Exploits that are missed can be addressed in
           | subsequent laws.
           | 
           | Practically, a minimum wage defined like the GP's would
           | require a detailed census of actually-paid one bedroom
           | apartment rents, which would be immune to your exploits.
        
             | Spooky23 wrote:
             | The BLS already publishes similar statistics. It's not
             | rocket science.
             | 
             | GSA does the same thing for travel expenses. You can
             | determine lodging and per diem expenses for every county in
             | the US.
        
         | nostrademons wrote:
         | Inflation, probably followed by corruption. Minimum wage would
         | rise to the point where a person could afford a 1BR apartment
         | within a 1 hour drive without traffic. Then the rents of those
         | 1BR apartments would rise to capture that new minimum wage.
         | Then minimum wage would rise to afford the new rent, and so on.
         | Eventually someone's going to say "Hey, I own an apartment
         | block downtown, I'm supposed to rent it out to the hoi polloi,
         | but I'll let you live there rent free if you work for me and do
         | exactly as I say, _wink wink_ ".
         | 
         | This is a very common situation in much of Latin America - both
         | inflation being transmitted through CoL-indexed social goods,
         | and the corruption that comes from trying to bypass that.
         | 
         | Any durable solution needs to address the questions of "How do
         | we ensure that there are enough 1BR apartments within a 1 hour
         | drive for everyone who wants one to get one?", "How do we
         | incentivize the construction of these 1BR apartments?", "How do
         | we maintain the desirability of these apartments once they're
         | built?", and "How do we prevent one firm from owning all of the
         | desirable 1BR apartments and setting whatever price they want?"
        
           | dv_dt wrote:
           | If the rent pricing exceeds the production cost of the
           | apartments by too high a profit margin, then a government or
           | regulated private entity should be formed to build them at a
           | reasonable margin, thus controlling the minimum wage growth.
           | 
           | Alternately a large enough ratio of government controlled
           | units within a market could be managed to provide a market
           | weighting to reasonable prices. (you can see that in play in
           | some European cities).
        
           | glenstein wrote:
           | >Then the rents of those 1BR apartments would rise to capture
           | that new minimum wage.
           | 
           | This is commonly expressed as a consequence of raising the
           | minimum wage, but in the most nuanced discussions of
           | inflation that I've been exposed to, people are mindful of
           | the fact that inflation ripples out into different segments
           | of the economy in different ways.
           | 
           | I think the most reasonable outcome is that certain segments
           | of the economy function as shock absorbers, which take the
           | hit of inflation disproportionately as the economy rebalances
           | itself and relieves pressures on segments of the economy that
           | were being squeezed unsustainably hard.
           | 
           | And so there is indeed a ripple effect of raising the minimum
           | wage, that there's more money to spend, but it radiates out
           | into the economy and disproportionate ways, and can be a net
           | benefit to wage earners because prices on critical
           | necessities may rise, but not in proportion to the rise in
           | wages, so it's still in a benefit in the end.
        
         | quantum_magpie wrote:
         | >two people being able to afford a 1 bedroom apartment within a
         | 1 hour drive without traffic.
         | 
         | My immediate reaction to this statement was.. it's insane? In
         | my opinion it should read 'a single person able to afford a 1
         | bedroom apartment within an hour of public transport commute.'
         | 
         | Otherwise it sounds like you don't think anyone should be able
         | to live anywhere reasonable without roommates?
        
           | licebmi__at__ wrote:
           | It's funny that the ideals of granting everyone "life,
           | liberty and a the pursuit of happiness" are regarded as
           | wisdom, but as soon as somebody tries to ponder of what that
           | might be on the specific, then it's regarded as crazy.
        
             | Seattle3503 wrote:
             | The quote talks about the pursuit of happiness, not
             | happiness.
        
               | TecoAndJix wrote:
               | I think you need some level of opportunity to pursue,
               | though
        
           | [deleted]
        
           | shafyy wrote:
           | Exactly. Even the mindset of thinking in "driving" vs.
           | walking or public transport shows a lot.
        
             | XorNot wrote:
             | It is however realistic given the the US's urban layout and
             | population preferences. Also nowhere has succeeded in
             | keeping essential, low paid workers living near where they
             | work - gentrification forces them out.
        
               | daniel-cussen wrote:
               | That's because their work has so much value and they get
               | paid none of it.
        
           | MisterBastahrd wrote:
           | An hour? Why is it acceptable or reasonable to spend 2 hours
           | of your unpaid time wasted on commuting?
        
             | IMTDb wrote:
             | Because the only way to guarantee that people have less
             | than an hour of commute to their job is to create
             | _extremely_ dense population center which means _extremely_
             | small living spaces which are almost universally hated. And
             | most jobs cannot be done remotely, so to guarantee that
             | each individual has space, he must accept to be some
             | distance ways from the hub where people concentrate to
             | perform their daily tasks.
             | 
             | Think of how many people a big hospital employs, and how
             | you'd need to organise living center if all of them had to
             | have a reasonable living space within few minutes of
             | commute. Now you need stores and restaurant there as well
             | _and_ the space to host the workers of these places too,
             | etc. The only way is to build huge tower hosting tons of
             | small appartements, kill all green areas to gain as much
             | space as possible. People don 't seem to like that idea
             | that much.
        
           | bee_rider wrote:
           | Also, you'd think the people with 'traditional values' or
           | whatever would be really excited if a single worker could
           | support a couple.
        
             | astrange wrote:
             | Dual-income families are because of equality, not poverty.
             | When women earn nearly the same pay, it's worth it for them
             | to work (and hire childcare) because then you can use the
             | money to buy stuff.
             | 
             | When they don't work, it's because it wouldn't allow the
             | household to buy more stuff on the margin - but rather than
             | "spouse earns so much their income doesn't matter", it's
             | more likely "they wouldn't earn enough to pay for the
             | childcare they have to hire". Which is a bad thing.
        
           | Aeolun wrote:
           | This sounds to me like they want to be able to provide for a
           | SO?
        
           | jpcfl wrote:
           | >Otherwise it sounds like you don't think anyone should be
           | able to live anywhere reasonable without roommates?
           | 
           | I think your confusing "should be able to" with "shall be
           | able to, enforceable by law".
           | 
           | I don't expect that a 15 year old working his first job as a
           | fry cook at an Arby's should be compensated enough that he
           | can afford to live on his own. In fact, that could be
           | dangerously disincentivizing his hard work toward his
           | education.
        
             | tinco wrote:
             | Well thank Reagan for ruining the honest living wage
             | forcing your lazy ass to go to college instead of wasting
             | your talent as an Arby's fry chef.
        
               | daniel-cussen wrote:
               | Those college cardboards are talismans. I was looking in
               | the Stanford bookstore and saw the following description
               | on a box:
               | 
               | PRESIDENTIAL Masterpiece Diploma Frame in Jefferson with
               | Black Suede & Premium Silver Wood Millet Mats - Stanford
               | U
               | 
               | $249.00
        
             | xboxnolifes wrote:
             | This rationale is always based on the fact that a
             | "teenager" doesn't need a livable wage. The problem with
             | this, is that not every fry cook is a teenager that doesn't
             | need to pay for food and shelter. Fast food is a $300bn
             | industry in the US. It doesn't need to be subsidized by
             | parents.
        
             | monkeybutton wrote:
             | Pay should scale with the value of work produced, not the
             | perceived "worth" of the worker. You argue with a
             | hypothetical teenager. But what about my racist and sexist
             | hypothetical uncle who owns an Arby's?
        
             | ramones13 wrote:
             | But should a 27 year-old fry cook make enough money to live
             | alone? Labor is labor. Pay shouldn't be less because it's
             | going to an acceptable to abuse class of person.
        
             | Bermion wrote:
             | Why shouldn't someone working as a fry cook be able to live
             | on his salary? It's not dangerous to have a system where
             | not everyone needs a university degree to earn a living.
        
               | ars wrote:
               | Think about that. Let's take your world, the fry cook can
               | live on his salary. Now the person with a University
               | degree can command a much higher wage since his skill is
               | in great demand.
               | 
               | He's got more money, so he can afford more expensive
               | stuff, increasing demand, which increases prices, and now
               | your fry cook can no longer live on his salary.
               | 
               | Do you want to respond by raising wages again? You're in
               | a never ending loop.
        
           | namecheapTA wrote:
           | He didn't say that no one should live reasonable places
           | without roommates. He said that the few percent of people
           | making the lowest wages in the country might have to have
           | roommates.
        
           | srjek wrote:
           | That was also my first reaction, but an alternate reading is
           | that it's two people living on the (minimum) wages of one
           | person.
        
           | monkeybutton wrote:
           | Perhaps the assumption is of a couple living together? Also
           | known as: shack up and produce offspring/future worker bees.
        
             | endisneigh wrote:
             | Yes, that's what I was assuming here
        
           | foolfoolz wrote:
           | living alone is a luxury all over the world. i don't think
           | it's good to expect minimum wage will afford you a luxury
           | style of living. we don't have the infrastructure to support
           | that for all. nor does any country
        
         | imgabe wrote:
         | Mass confusion. Every location has to have a custom minimum
         | wage based on the local real estate market? How are you going
         | to enforce that?
         | 
         | How about people figure out how much money they need to afford
         | the lifestyle they want and then get a job that pays that much?
        
           | all2 wrote:
           | The US Department of Defense already has a Cost of Living
           | Allowance (COLA) calculated for most of the United States,
           | large parts of Germany, and large parts of Korea.
           | 
           | The work is already done.
        
             | imgabe wrote:
             | That takes into account the specific set of apartments
             | within a 1 hour drive of each individual work location in
             | the US and automatically updates as apartment rents
             | fluctuate?
        
               | Wowfunhappy wrote:
               | If this was a real law, lawmakers would definitely need
               | to flesh out the requirement beyond what an HN commenter
               | presumably spitballed in a couple minutes or less, yes.
               | As written, the requirement also doesn't account for
               | factors like public transit.
               | 
               | But I do think the idea has merit.
        
             | nathancahill wrote:
             | Even further, the US State Department has a COLA for any
             | city it has an embassy or consulate in the world. But it's
             | for a diplomatic lifestyle, not for minimum wage workers in
             | the US.
        
           | gunfighthacksaw wrote:
           | > Every location has to have a custom minimum wage
           | 
           | I think the federal structure of the USA lends itself nicely
           | to that problem.
           | 
           | There would be an issue in extremely heterogeneous states
           | like Washington or California, where the big cities on the
           | coast are known for being expensive while the interior is
           | often cheaper, less desirable and subject to snobbery, as in
           | the case of Bakersfield which I have never heard anything
           | good about.
        
             | imgabe wrote:
             | States and even cities already do set their own minimum
             | wages. I don't see how further complicating the issue by
             | requiring each individual building to consider the
             | apartments available within a 1hour drive radius to figure
             | out what their minimum wage needs to be.
        
           | philipsunrise wrote:
           | For a lot of people, the lifestyle they want is "a place to
           | live" and getting a job that pays that much is impossible.
        
           | Wowfunhappy wrote:
           | That was my initial reaction, but the more I think about it--
           | is it really so unreasonable? Right now, we force employees
           | to deal with the burden of ever-changing real-estate markets.
           | Why not make employers do that?
           | 
           | And if it's too much of a hassle for your business, just pay
           | your employees substantially above the minimum.
        
             | imgabe wrote:
             | Most people are more than capable of dealing with the
             | burden of managing their personal finances and budgeting.
             | The more responsibility you want to shove off on
             | institutions to take care of for you, the greater you
             | increase your dependence on them and the more susceptible
             | you make yourself to their control.
        
               | SketchySeaBeast wrote:
               | I suppose people are poor because they are irresponsible
               | and it's important they remain that way for freedom is an
               | interesting take.
        
         | johnrob wrote:
         | Without debating the merits of said concept, the effect would
         | be to (finally) boost the supply of housing, and find a way to
         | transition (decouple?) stored wealth from real estate assets to
         | something else.
        
         | [deleted]
        
         | gruez wrote:
         | > I wonder what the USA would look like if minimum wage was
         | defined as; two people being able to afford a 1 bedroom
         | apartment within a 1 hour drive without traffic.
         | 
         | More labor being "outsourced" to cheap counties, for one.
         | Rather than a restaurant making meals on site, they'll do most
         | of the prep work 50 miles away where the CoL (and minimum wage)
         | is cheap and truck it in.
        
           | tshaddox wrote:
           | I'm pretty sure any restaurant in the United States that
           | prepares meals on site does so because that's a crucial part
           | of the product they're offering, not because it's cheaper to
           | prepare the meals on site.
        
             | s1artibartfast wrote:
             | If it is a crucial part of the product, some restaurants
             | will switch products and others would go out of business.
        
           | exac wrote:
           | Correct me if I'm wrong, but wouldn't it be better for the
           | environment if all the produce is delivered in one trip,
           | verse the environmental cost of 50 employees driving 100
           | miles / day? I'm assuming the LCOL employees live close to
           | the factory.
        
           | babelfish wrote:
           | Places like Applebee's already do this...
        
         | bun_at_work wrote:
         | Unfortunately, adding complexity to legislation often makes it
         | impassable. This is especially true now, with the increased
         | polarization in our politics.
         | 
         | Some variation of your suggesting is better than what we
         | currently have for minimum wage. However, getting that through
         | congress seems impossible, IMO.
        
         | Schroedingersat wrote:
         | Nah,
         | 
         | Make it one bedroom per adult (so 1 bed apt for one, or 2 bed
         | for 2, whichever is more) with a 30 minute commute in peak hour
         | (by any means), as well as enough left over for a deposit on a
         | similar home in 5 years for 20% lvr assuming current property
         | value growth continues.
        
         | thepasswordis wrote:
         | >I wonder what the USA would look like if minimum wage was
         | defined as; two people being able to afford a 1 bedroom
         | apartment within a 1 hour drive without traffic.
         | 
         | It would look like both minimum wage, and rent/real estate
         | prices going directly to infinity.
        
         | golemiprague wrote:
        
         | tenebrisalietum wrote:
         | >I wonder what the USA would look like if minimum wage was
         | defined as; two people being able to afford a 1 bedroom
         | apartment within a 1 hour drive without traffic.
         | 
         | A lot of stuff would be automated or simply not exist. I don't
         | see how high minimum wage can "work" to solve social issues if
         | companies can choose between not hiring people and paying a
         | high minimum wage.
        
           | munk-a wrote:
           | If automation was free it'd be here already. Automation
           | creates high skilled jobs to manage the automation - it can
           | be a significant labour save but the way healthy economies
           | work that freed labour is going to find some other service to
           | offer.
        
         | woah wrote:
         | I wonder what the USA would look like if zoning laws were
         | defined as: Issue building permits until people can afford a 1
         | bedroom apartment within a 1 hour drive of work without traffic
        
         | kube-system wrote:
         | It would look like somewhere between $7.25 - $725/hr, depending
         | on their circumstances.
        
         | ALittleLight wrote:
         | I think there should be an exception for people who are
         | financially dependent on someone else. If you're a teen living
         | at home you should be able to work for whatever someone will
         | pay.
        
           | bobro wrote:
           | why?
        
             | munk-a wrote:
             | To distort the labour market and make it harder for adults
             | to actually bargain with their employers for a reasonable
             | wage - I'd assume.
        
         | karaterobot wrote:
         | Everybody is giving you theoretical answers, but I am literal
         | minded.
         | 
         | So, according to some website, Miami, FL is the most expensive
         | real estate market in the country, and Florida has a fairly low
         | minimum wage currently. So, I'll work with that.
         | 
         | I assume that a 1 hour drive without traffic puts you at most
         | around 55 miles (freeways are faster, city streets are slower,
         | but this is an estimate).
         | 
         | That could put you in places like Belle Glade, Florida, where
         | the 1 bedroom apartment listings are between $400 and $650 per
         | month.
         | 
         | But, it could also put you in the much nicer West Palm Beach,
         | Florida, where (according to Zillow Fair Market Rent for ZIP
         | Code 33401) the average rental for a 1 bedroom apartment is
         | $1274 per month.
         | 
         | Divided between two people, that's $637 per month. If we go
         | with the rule that 1/3 of your wages should go to housing, that
         | means you'd need to make $1911 per month to afford that
         | apartment. If you worked 40 hours a week, and there are (on
         | average) 4.3 weeks per month, that means you'd need to make
         | $11.11 per hour to afford that apartment.
         | 
         | According to this other random website, the average hourly wage
         | in Miami is $21 per hour. The minimum wage in Florida is
         | currently $8.65 per hour.
         | 
         | In summary, if they took the least generous interpretation of
         | your rule set (the Belle Glade case) they could safely lower
         | the minimum wage. If they took the most generous (the West Palm
         | Beach case) they would need to raise it by about $2.50 per
         | hour.
         | 
         | The average wage across the U.S. is about $27, and 2/3rds of
         | people make "at least" above $15/hour, so it may not affect
         | most people at all, _ceteris paribus_ , and making the
         | assumption that the example region is a useful example.
         | 
         | This is all very hand-wavey and back of the envelop, of course.
        
         | elil17 wrote:
         | God a one hour drive without traffic is like a inhumanely long
         | commute
         | 
         | Interesting thought though
        
           | shadowgovt wrote:
           | Apparently, a little under 1 in 10 US workers have a 1-hr-
           | plus commute time (https://www.census.gov/content/dam/Census/
           | library/publicatio...).
        
             | bcrosby95 wrote:
             | That's with traffic though.
             | 
             | I live about 45 minutes from downtown LA without traffic.
             | Which turns into 2.5 hours with traffic.
        
               | kbelder wrote:
               | My commute is 45 minutes without traffic... 46 minutes
               | with traffic. (I live in Oregon.)
        
         | mrfusion wrote:
         | You should include traffic in it.
        
         | bloaf wrote:
         | Employers would pay apartment owners to keep a below market
         | apartment "available" but turn down all applicants, then use
         | that below market price to justify arbitrarily low wages.
        
         | wnevets wrote:
         | >I wonder what the USA would look like if minimum wage was
         | defined as; two people being able to afford a 1 bedroom
         | apartment within a 1 hour drive without traffic.
         | 
         | Slightly smaller yachts for the executives.
        
           | gruez wrote:
           | >Slightly smaller yachts for the executives.
           | 
           | Yeah, it will result in lower real income for executives
           | ...along with anyone that make more than 3x the poverty
           | threshold, per CBO's report:
           | 
           | https://en.wikipedia.org/wiki/Minimum_wage_in_the_United_Sta.
           | ..
        
         | paulpauper wrote:
         | there are way more expenses besides that. it will never be
         | enough without creating problems . Rather than putting the onus
         | on business, just fire up the brrrrinter.
        
           | munk-a wrote:
           | I am failing to understand what that second sentence means -
           | can you de-meme it a bit?
        
         | brightball wrote:
         | I know this won't be popular but minimum wage shouldn't exist.
         | Basic income, sure but not minimum wage. Every discussion of
         | minimum wage blames employers for something that is completely
         | out of their control: inflation. When the price of gas, housing
         | and food rises the business where you work doesn't suddenly
         | have more money to hand out. If anything their costs have gone
         | up too reducing what they can afford to pay out.
         | 
         | It blows my mind that people continue to act like rising costs
         | are the fault of their employers, who have no control of it at
         | all.
         | 
         | No doubt, this exec in particular was a moron who deserves to
         | be fired for even suggesting what he did but the overall
         | sentiment just doesn't jive for so many businesses that are
         | getting squeezed harder and harder everyday.
        
           | tssva wrote:
           | Hmmmm, how could a business possibly compensate for increased
           | costs including labor costs?
        
             | brightball wrote:
             | By raising prices and further cementing inflation across
             | the board, which will be passed on to other people and
             | other business to persist the effect even further if they
             | don't lose customers because of the price increases.
             | 
             | It sounds so simple to just raise prices, but if it were
             | that simple it would have happened long before. Especially
             | on the lower end of the consumer goods and services market
             | the price sensitivity of people is sky high. In grocery
             | stores companies chose to shrink their products and hope
             | people didn't notice rather than increases prices for that
             | exact reason.
             | 
             | It gets passed along somewhere and in the end the more
             | people who decide to "just raise prices" the worse the
             | problem gets.
        
         | ars wrote:
         | Think about the positive feedback loop you are proposing here:
         | 
         | Minimum wage goes up -> everything costs more -> minimum wage
         | needs to go up some more.
         | 
         | So labor expense grows and grows, while expense for "stuff"
         | becomes a smaller and smaller part of that.
         | 
         | So how do you make that stuff? You can't hire anyone - too
         | expensive. So either automation, or buy things from other
         | countries. This means firing people.
         | 
         | Your proposal will lead to mass unemployment.
         | 
         | But it gets worse, since you've tied your numbers to the cost
         | of housing, and cities have the most expensive housing, people
         | won't be able to live in the city (no jobs available that pay
         | enough).
         | 
         | So mass migration to places with lower housing, until the cost
         | of housing in a city goes down. What's you've done is
         | incentivized everyone to kind of spread out in a diffuse way to
         | keep down the cost of housing.
         | 
         | But where are the jobs in these places? There are no service
         | jobs, since services are too expensive for anyone to buy. You'd
         | have to drive more than an hour to find a job.
         | 
         | People will respond by demanding rent control, but that also
         | means less housing is available.
         | 
         | So not only did you cause mass unemployment, you also caused
         | mass homelessness.
        
         | wccrawford wrote:
         | That's not nearly enough detail for the setting of the wage.
         | Companies would simply assume that they always eat the cheapest
         | food, buy the cheapest transportation, never go on vacation, no
         | luxuries at all, etc etc. If you don't factor all that in,
         | they'll factor it out.
        
           | TaylorAlexander wrote:
           | > Companies would simply assume
           | 
           | This could be defined by local governments with additional
           | standards not written in to this internet comment.
        
             | aksss wrote:
             | Nothing stops a local government, to my knowledge, or a
             | state government from raising minimum wage for the unique
             | conditions their locale faces and the ideals they want to
             | reflect. People too often think about federal minimum wage,
             | but think about how diverse the environments are that
             | federal minimum wage affects. If you live in a city/state
             | where the minimum wage is lower than you think it should
             | be, you'll probably have better luck changing local
             | conditions rather than trying to boil the ocean that is the
             | US with 350m people and an enormous landmass consisting of
             | the densely urban and sparsely rural, the rich coastlines
             | and wealthy mountain resorts to the impoverished hill
             | countries.
        
           | tartoran wrote:
           | Even with all that factored in, and even with skipping meals,
           | not traveling anywhere minimum wage does not afford one a
           | roof over their head. Maybe with hours of commute it could
           | start working out (if far away remote places are considered)
           | but commute time is not included as wage and commute also
           | costs money so it breaks the equation again. But CEOs are
           | getting insane paychecks and bonuses.
        
             | wowokay wrote:
             | I don't think commute should factor into this discussion at
             | all. People choose to live in expensive urban cities, why
             | not move to a cheaper place? The point of opportunity is
             | that everyone has it, but people that take advantage of it
             | and succeed get chastised while other people who don't wish
             | to apply themselves get angry. Then add children on top of
             | it and you have people with multiple kids living on minimum
             | wage who feel entitled to earn more money because of their
             | poor choices and family planning.
        
           | Schroedingersat wrote:
           | Still a great deal better than the current situation.
           | Currently if you do all that stuff and have room mates you
           | might break even.
           | 
           | I'd be here for using the same standards as rental agencies
           | do though so it's actually possible to get a place: 3x the
           | rent of 1 bedroom for one full time job. And make it within
           | 30 minutes during peak hour (by whichever means is fastest).
           | Also if they cite a train as their fastest, then no car or
           | license requirements on the job and no penalizing anyone if
           | the train is late.
           | 
           | If they want to be feudal lords, they can at least have the
           | bare minimum responsibilities that actual feudal lords had.
        
         | sokoloff wrote:
         | The word "afford" is doing a lot of work there. Is paying 40%
         | of gross income for rent "too much"? 35%? 30%? What if
         | utilities were included vs not? 10th percentile rent? 25th
         | percentile?
        
       | toomuchtodo wrote:
       | Pics of email:
       | https://twitter.com/vote4robgill/status/1506666976344784900
        
       | grover35 wrote:
       | Hopefully this is the moment we realize that capitalism is really
       | not serving us in any meaningful way. As long as we have enough
       | people brave enough to quit and take to the streets the working
       | class might have a fighting chance at ending their exploitation.
        
         | ivan_gammel wrote:
         | As far as I can see, one particular flavor of capitalism works
         | quite well: https://en.wikipedia.org/wiki/Social_market_economy
         | 
         | It's not like bad things do not happen, but the system
         | continuously checks the balance between employee and employer
         | interests and adjusts.
        
         | colinmhayes wrote:
         | This isn't capitalism's fault, it's just human nature. Every
         | economic system will have scumbags who try to exploit other
         | people for personal gain.
        
           | cardiffspaceman wrote:
           | Achieving the optimum economy by allowing human nature to do
           | its thing was supposed to be the way capitalism works. To me
           | that would mean including scumbags, somehow the invisible
           | hand would create paradise.
        
             | colinmhayes wrote:
             | I don't think any economic system can create paradise. Some
             | are certainly better at optimally distributing scarce
             | resources though.
        
             | vkou wrote:
             | Paradise is here, it's just not evenly distributed.
        
           | daenz wrote:
           | And capitalism's main advantage is that tries to account for
           | the scumbag human nature (competition) and attempts to use
           | that to its advantage (creating an economy that strives to be
           | efficient). Other systems pretend like that human nature
           | doesn't even exist, and everything will be fine if we ignore
           | it.
        
         | metadat wrote:
         | Unfortunately only some of us have realized this, and there is
         | no clear path forward yet. We still have a long, long way to go
         | to achieve meaningful improvements.
        
         | vlunkr wrote:
         | One guy that works for a franchise of an increasingly
         | irrelevant restaurant chain has a bad take in a private email
         | conversation and you think this is the end of capitalism?
        
         | mbostleman wrote:
         | Capitalism punishes this behavior, as it did here. The market
         | worked as we would expect and hope.
        
           | rat9988 wrote:
           | No it doesn't. Your example only works because information
           | gets leaked. And market can only absorb that much
           | information, unless you put special regulatory bodies. And
           | "punish" is still to be seen here.
        
         | FredPret wrote:
         | Capitalism is a system, this guy is just a participant. Make
         | him famous and turn the system against him.
         | 
         | I'm a dyed-in-the-wool ubercapitalist, and I hate scarcity-
         | focused, race-to-the-bottom companies and people like these.
         | It's a question of values and approach to life.
        
       | subpixel wrote:
       | If I were King of America, the tax code (and other financial
       | instruments I can't think up on the spot) would reward companies
       | based on the degree to which they enrich their rank and file
       | employees.
        
         | InitialLastName wrote:
         | Start off by charging them extra in taxes to cover any welfare
         | their full-time employees qualify for.
         | 
         | edit: with a 200% penalty for administrative fees.
        
           | gruez wrote:
           | >Start off by charging them extra in taxes to cover any
           | welfare their full-time employees qualify for.
           | 
           | Isn't this equivalent to raising the minimum wage? I'm not
           | sure what's the point of policies like this other for the
           | cathartic effect/grandstanding.
        
         | gruez wrote:
         | >would reward companies based on the degree to which they
         | enrich their rank and file employees.
         | 
         | How would this work? How is this different than a payroll
         | subsidy or the EITC?
        
       | tartoran wrote:
       | You never hear about lowering bonuses or executive paychecks. Why
       | is that not revolting people anymore?
        
       | yalogin wrote:
       | This is textbook example of a bad manager. These kind of people
       | are the reason why employees leave. The person should be removed
       | from that position and made into an individual contributor.
        
       | rekabis wrote:
       | The Parasite Class cares only for profit. Human suffering? Let's
       | leverage that! Let's use that as a form of control, to extract
       | even more profits!
        
       | aerovistae wrote:
        
         | stonemetal12 wrote:
         | I saw this on Reddit yesterday, the comments were much worse.
         | 
         | In this thread there is a mention of Ethics, and even a post
         | that shows the thinking of how someone could write the email
         | without being Satan's brother.
        
           | giraffe_lady wrote:
           | Having someone in here arguing for the ethics of this sort of
           | thing is _not_ better. Just because it looks like we all
           | follow an official style guide in here doesn 't make what is
           | said here automatically _better_. It has to do that on its
           | own merits, and as long as  "arguing persuasively for evil,
           | as a thought exercise" is considered a good thing here that
           | can't happen imo.
           | 
           | Civility and debate themselves are not virtues! What purpose
           | do they serve for us? What are we doing here? If you want to
           | make an argument that we're superior to reddit you need to
           | make it on more than the aesthetics of the prose bc that
           | isn't shit in the end.
        
         | warent wrote:
         | > Please don't post comments saying that HN is turning into
         | Reddit. It's a semi-noob illusion, as old as the hills.
         | 
         | https://news.ycombinator.com/newsguidelines.html
        
           | naoqj wrote:
           | He didn't say that hn is turning into reddit, he ist talking
           | about this particular thread, and at the moment that he had
           | posted the comment, I would have agreed with him.
        
             | thehappypm wrote:
             | I agree as well. This particular thread oozes the classic
             | eat-the-rich trope that dominates Reddit and doesn't match
             | the culture here.
        
           | aerovistae wrote:
           | Fair enough. I do already know that rule, honestly, I'm a
           | long-time user and I've seen others fall into the trap of
           | that thinking many times. It just happened to occur to me
           | with this thread.
        
         | [deleted]
        
         | [deleted]
        
         | mxkopy wrote:
         | I don't think the reasoning of this individual deserves any
         | other consideration than disgust.
        
           | aerovistae wrote:
           | Sure. I agree. But a thread-full of that disgust doesn't have
           | any value as a conversation. We already all know how we all
           | feel about this sort of treatment of other people, it's a
           | given.
        
             | mxkopy wrote:
             | Sure, but discrediting the disgust on the basis of it being
             | valueless has a similar effect of discrediting the
             | positions that disgust is based on, especially when you
             | aren't adding value yourself. Mention some solutions!
             | Otherwise you're just talking about HN vs reddit in a
             | thread about vile corporate practice that is very real and
             | serious.
        
             | [deleted]
        
       | warent wrote:
       | This is the reason why communities like r/antiwork are so
       | massive. The sad fact is that working class people who don't
       | possess rarer skills are frequently mistreated this severely. In
       | other words it's much easier for a sociopath to exploit unskilled
       | labor than skilled labor. This in my opinion is part of the
       | responsibility of the government which they've been largely
       | failing at lately, it's supposed to balance businesses so they
       | don't just throw humans into the furnace to keep the wheels
       | turning.
        
       | jasonhansel wrote:
       | At least he was being honest.
       | 
       | I think that many corporate executives have thoughts along these
       | lines: they want employees to be so desperate that they'll accept
       | low wages and bad working conditions. That is, of course, why
       | they tend to campaign against e.g. minimum wages, food stamps,
       | and reforms that would make it easier to unionize.
       | 
       | The only difference is that other execs have the good sense not
       | to put such thoughts in writing.
        
         | mateo1 wrote:
         | Yeah, this guy clearly hasn't worked in a company big enough to
         | know he has to translate this to corporate speak for all
         | written communications.
        
       | slantedview wrote:
       | The only reason this new story became a problem for Applebees was
       | the suggestion to exploit high gas prices. But the suggestion to
       | hire people at lower wages is par for the course, unfortunately.
        
       | oh_sigh wrote:
       | The title should be "An email urging lower wages for new
       | employees due to higher gas prices sparks walkout at Lawrence
       | Applebee's", per HN guidelines.
       | 
       | The user-created title is also incorrect, because it was not an
       | Applebee's exec, it was the director of operations for a company
       | that franchises Applebees who wrote the email.
       | 
       | I also find it interesting that the author of the email doesn't
       | even get a smidgen of credit for his parting paragraph:
       | 
       | > "Your employees that live check to check are impacted more than
       | the people reading this email. Be conscious of that. Many will
       | need to work more hours or get a second job. Do things to make
       | sure you are the employer of choice. Get schedules completed
       | early so they can plan their other jobs around yours. Most
       | importantly, have the culture and environment that will attract
       | people"
       | 
       | I don't think the author is a bad person. He was just caught
       | treating a certain business expense like one treats other
       | business expenses, except in this case it is the wages of the
       | employees and so looks wrong. Many people are of the mind that
       | businesses aren't charities, have no need to pay their employees
       | anything more than the employees accept, and through free
       | association, if you accept an offer, that means you agree with
       | the terms of the offer.
       | 
       | In my mind: If you don't like the wages Applebees will pay, then
       | don't accept a position at Applebees. Maybe there are huge
       | structural problems with society forcing your hand, or maybe
       | you're just a skill-less deadbeat, or maybe Applebees is shooting
       | itself in the foot by not offering high enough wages, but
       | regardless, that is not Applebee's responsibility to pay you more
       | than what they view your labor as worth.
        
         | WestCoastJustin wrote:
         | Your suggested title is too long for submission. Sometimes you
         | need to use your best judgement in applying the HN guidelines.
        
           | bjterry wrote:
           | The headline is deceptive as written. It's an executive at an
           | Applebee's franchisee with 47 restaurants, not the chain
           | itself.
        
             | dlp211 wrote:
             | This is a distinction without a difference. I don't care
             | that different Applebee's are managed by different groups.
             | 
             | It never ceases to amaze me the way that people with any
             | type of power treat and think about people with less power.
        
           | oh_sigh wrote:
           | That's fine, but the title should at least be factually
           | accurate if the user is going to write their own.
        
             | WestCoastJustin wrote:
             | Yeah, makes sense. I agree with you.
        
       | dragontamer wrote:
       | Reading down to the later parts of the article, this sounds like
       | a bad game of telephone from upper-management to middle-
       | management.
       | 
       | Central Applebee management puts out vague message about
       | inflation affecting costs and revenues. That hiring managers need
       | to work harder to retain their employees by giving potential
       | employees more flexible schedules (which may have a benefit of
       | cutting costs: some employees may be willing to take a lower pay
       | if they can have a different schedule).
       | 
       | Some middle-manager reads that statement as having to do with
       | gas-prices making prospective employees more desperate for a job.
       | 
       | And the rest is history.
       | 
       | ------------
       | 
       | Upper-management always issues vague strategic-level statements.
       | Its the middle-managers who have to translate the vague
       | statements into something that connects with the lower-level
       | employees. This middle-manager colossally failed at the job.
        
       | orky56 wrote:
       | The whole point of minimum wage is to ensure that employer wages
       | to employees to exceed some level of poverty. If there is still
       | flexibility within the wage amount, then the floor needs to be
       | raised higher so the employer can't play within this gray space.
        
         | tenebrisalietum wrote:
         | This thinking seems to assume that employers are unable to
         | choose how, when, and where they employ people. At some point
         | it's cheaper to automate the job than hire someone to do it, or
         | simply put money into higher ROI generators.
        
       | pipeline_peak wrote:
       | Normalize releasing shady internal executive emails
        
       | patientplatypus wrote:
        
       | sudden_dystopia wrote:
       | Regional manager is not quite "exec" but disgusting email non the
       | less.
        
       | darth_avocado wrote:
       | Rising gas prices mean we can lower wages to keep employees?
       | 
       | Outside of the moral implication, this doesn't even logically
       | make sense.
       | 
       | People are already facing higher costs, if you pay them lower,
       | they will not work for you, because you know, commuting to work
       | at your place will eat into the budget.
        
         | throwaway0a5e wrote:
         | The logic only works because we're coming out of a period where
         | workforce participation fell off a cliff.
         | 
         | Rising CoL because of energy and inflation -> people need the
         | jobs more badly -> more labor available -> reduce wages
         | 
         | And before anyone tries to score a few easy points building a
         | strawman, I'm just explaining the logic. I'm not endorsing it
         | or saying it's ethical.
        
         | ch33zer wrote:
         | Many people will have no choice, they're force to work wherever
         | they can at whatever wage they can get.
        
         | V-eHGsd_ wrote:
         | > Outside of the moral implication, this doesn't even logically
         | make sense.
         | 
         | If I'm reading his point correctly ... He's saying there _was_
         | an employment crunch, and companies were competing with each
         | other for employees by raising wages. He supposes that an
         | increase in gas prices means that people need more money, so
         | there are more employee hours "to go around". Therefore,
         | companies don't need to compete as much with each other to
         | attract employees, so they can go back to not paying as much.
        
           | awa wrote:
           | I think the point was since the stimulus money has stopped
           | they don't have to compete with the government and with
           | inflation these folks will need to find a job.
        
           | ashtonkem wrote:
           | This reeks of motivated reasoning on behalf of the manager,
           | as this analysis makes absolutely no sense.
        
             | ffggvv wrote:
             | there is a point that with inflation, people who thought
             | they could retire are now realizing they are going to need
             | more money and having to unretire.
        
         | elliekelly wrote:
         | They'll also eat at Applebee's less. This exec seems really out
         | of touch with who the typical Applebee's customer is and how
         | much money they earn.
        
         | jabbany wrote:
         | The idea is that they think of themselves as a labor monopsony.
         | They are foreseeing an increase in supply (due to higher living
         | costs forcing more people into the labor market, either those
         | not previously working or those who are now taking on second
         | jobs) and thus plan to accordingly reduce the price (wages).
         | 
         | The main fault in their reasoning is the belief that higher
         | living costs necessarily results in more people getting into
         | the labor market.
         | 
         | At some point the marginal benefit to a worker becomes zero or
         | negative, where higher living costs can actually result in a
         | reduction in the labor pool. Whether we are at that point
         | though, is not known yet without more information about the
         | localized economy.
        
         | juancb wrote:
         | Those with exploitative mindsets have learned over time that
         | it's easier to take advantage of those who they see as weak and
         | desperate.
        
           | 22c wrote:
           | See also: employees on a sponsored work visa
        
             | mistrial9 wrote:
             | a 7-11 franchise in New York USA was convicted of modern
             | slavery, using a non-citizen laborer and adding unpaid
             | hours and duties.. iir
        
       | sammalloy wrote:
       | I just don't understand how Mr. Pankratz's opinion is considered
       | acceptable in modern society. It's 2022. Isn't it time for
       | humanity to evolve past this kind of thing? Why are we as a
       | civilization still mired in a culture of exploitation and
       | incentivizing suffering?
        
       | matrix12 wrote:
       | This is a very common end result of many policies that claim
       | otherwise. He's merely describing it openly. e.g. Gas cars idling
       | for miles of backup on the freeway, as the rich $100k car races
       | past in the HOV lane.
        
       | mywittyname wrote:
       | > "Most of our employee base and potential employee base live
       | paycheck to paycheck.
       | 
       | Including store management.
        
       | zitterbewegung wrote:
       | I believe the opposite is happening for people who do ridesharing
       | / taxi drivers and delivery services .
        
       | eatonphil wrote:
       | I don't think it's an Applebee's exec it's an Applebee's
       | franchise exec. Unless I'm misunderstanding.
        
         | cardiffspaceman wrote:
         | I agree with this interpretation. Notice that "Apple Central"
         | is referred to at least once.
        
           | [deleted]
        
         | lotsofpulp wrote:
         | The former will get more clicks.
        
         | sonotathrowaway wrote:
         | I think the article said it was from a regional manager. That
         | counts as an Applebees corporate exec.
        
           | azinman2 wrote:
           | Not when it's a franchise that affects a small portion of
           | their stores.
        
         | [deleted]
        
         | InitialLastName wrote:
         | Actions of the franchisees reflect on the brand (that's the
         | point of franchise agreements). In case I want to avoid giving
         | this guy money (as is my right as a consumer under capitalism),
         | how can I easily confirm which franchises his company owns? I
         | can't, you say? Well, next time I want to eat mediocre food in
         | a bland corporate environment, I'll have to go to Chili's
         | instead.
        
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