How this works: Friend owns bars and drink prices are reasonable. Bartenders currently make min. wage and $300+ in tips per shift.
If Owner pays higher wages, he will raise drink prices to balance it out.
Customers will tip less. Bartenders will makes less than they were before.
Why do the lolbertarain fucks who always say this shit in comment sections never have faith in the market? If you really believe in the efficiency of the market, this won't matter.
Here's how it works:
Friend owns a bar and drink prices are high because that's how bars make money. Bartenders make min wage and get large tips because the delicate price-conscious consumer doesn't exist. Also alcohol inhibits your frontal lobe which is where the responsibility social stuff lives. That means you're more frivolous with cash when you're drunk. Another reason why bars make as much as they do.
Owner pays high wages. He raises drink prices to maintain his profit. The bar down the street also raises prices because it's a federal law. There's nowhere for the customer to go. The weakest businesses that can't operate at this level will close. This is good. Businesses are supposed to close in a free market. That's how it works. Some succeed, a lot fail. That's what makes it fair. It's not a fair market if it's allowed to fuck over workers so that it doesn't have to go out of business. When enough bars fail and become scarce, the high price will be more appealing to customers. They'll patronage the remaining bars even with higher prices. If those few bars can't keep up, new ones will open and the market will be efficient. This is the best outcome. Because the market removed inefficiency and everything balanced out.
Have a little faith in the thing you can't stop defending no matter how shit it is. If it's not shit, then embrace it.
He raises drink prices to maintain his profit. The bar down the street also raises prices because it’s a federal law. There’s nowhere for the customer to go. The weakest businesses that can’t operate at this level will close.
Or, some bar owner will decide they can take a smaller cut and will keep prices the same even with the wage increase. You know, because there are market forces that act on prices, too! Businesses don't just set prices wherever they please!
I prefer this angle for attacking lolbertarians on this point because (1) businesses do, in fact, set prices in response to market forces, and (2) it highlights that the inefficiency getting squeezed out of the market is the profit the owner is leeching off the business.
Why do the lolbertarain fucks who always say this shit in comment sections never have faith in the market? If you really believe in the efficiency of the market, this won't matter.
Here's how it works:
Friend owns a bar and drink prices are high because that's how bars make money. Bartenders make min wage and get large tips because the delicate price-conscious consumer doesn't exist. Also alcohol inhibits your frontal lobe which is where the responsibility social stuff lives. That means you're more frivolous with cash when you're drunk. Another reason why bars make as much as they do.
Owner pays high wages. He raises drink prices to maintain his profit. The bar down the street also raises prices because it's a federal law. There's nowhere for the customer to go. The weakest businesses that can't operate at this level will close. This is good. Businesses are supposed to close in a free market. That's how it works. Some succeed, a lot fail. That's what makes it fair. It's not a fair market if it's allowed to fuck over workers so that it doesn't have to go out of business. When enough bars fail and become scarce, the high price will be more appealing to customers. They'll patronage the remaining bars even with higher prices. If those few bars can't keep up, new ones will open and the market will be efficient. This is the best outcome. Because the market removed inefficiency and everything balanced out.
Have a little faith in the thing you can't stop defending no matter how shit it is. If it's not shit, then embrace it.
Or, some bar owner will decide they can take a smaller cut and will keep prices the same even with the wage increase. You know, because there are market forces that act on prices, too! Businesses don't just set prices wherever they please!
I prefer this angle for attacking lolbertarians on this point because (1) businesses do, in fact, set prices in response to market forces, and (2) it highlights that the inefficiency getting squeezed out of the market is the profit the owner is leeching off the business.
Drink owner raises prices, consumers continue to tip 20% like they always have, tips go up