Recent comments in /f/washingtondc

ksixnine t1_jaatj9v wrote

The $114 or $200 are both with healthcare ~ that was why I asked if you understood the tip credit: healthcare in conjunction with the tip credit was already a thing before the pandemic/ I-82.

Different establishments have different protocols on where the service fee goes, and based on the experience of the server determines whether they can move to a different job or not - it really isn’t as if they are saying ‘I’m not making what I’m worth, so I’ll leave’ and is closer to saying ‘no one will hire me because I’m not experienced enough’ ~ which doesn’t even scratch the surface as to whether they are good or bad at the job.

The reality is management was always on the hook to pay whatever the minimum wage was if sales were low - they grumbled about healthcare, and ironed out what food cost to raise to meet the new labor demands.

Without the cushion of the tip credit, and the rest of the financial responsibilities that they have to contend with, they aren’t going to trim their profit margins — truth be told: the customer has always been responsible for keeping the doors open, and the cost of doing business was somewhat hidden; however, now that certain people demanded that the tax credit be removed in favor of using a standard wage, restaurants are going to pass that responsibility onto you.

The elephant in the room is that the gratuity industry that many detest generates about $48bil annually (yes, just tips..) and that the argument to increase wages/ remove the tip credit was a means to tax food service workers more.

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ShimbyHimbo t1_jaatffj wrote

Yes, which many in this thread believe isn't enough. 35 years would only add 12 years of units with the newest being in the late 80s. Every year, it would add a year more of units, but I would have to look at building permits issued by year to determine if that's even a significant number of units.

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ShimbyHimbo t1_jaaszpy wrote

Just want to reply to your edit. There is limited evidence that shows a direct effect on limiting supply. See the UMN study on Minneapolis Rent Stabilization.

https://www.cura.umn.edu/research/minneapolis-rent-stabilization-study

Additionally it's silly to say "price control any other product" when housing operates very differently from consumer goods. Housing is particularly unique due to it's fixed location, the lack of standardization (units can have significant differences) its status as a basic necessity, the barriers to entry for creating it, the local market effects, the cultural norms, and all of the factors around the financing of housing. The United States has had limited interventions in price ceilings that mostly relate to emergency situations, so most of what we have to go off of are functionally economic thought experiments where we set "all else equal" and even the most adherent followers of classical economics would tell you that models do not map accurately to the real world.

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