Then we’d only have massive corporate business, effectively giving them monopolies. There’d be no ma and pa shops anymore. These jobs would then become more competitive, effect making it impossible for young people to get jobs. You can’t just get rid of something with a snap of your fingers and expect it to be ok
Why would that be impossible? People are required to report all tips on their taxes already. We could remove the tip exemption for wages pretty easily. The real reason we don’t is because people make far more money via tips than they could ever expect in pure wages, since a $30 meal + $5 tip is different than a flat $35 meal.
Because whether or not you tip, and the amount of tip are heavily engrained in our culture and is not based on that individuals wage. If we gave everyone a livable wage, do you really think the tip percent option is going to magically go away? Like why not make more money if you can just by asking? And the majority of people will still succumb to that pressure and tip irregardless of wage
Yes, literally Aldi’s grocery store average starting pay in my state, and at the store near me is $19 an hour for cashiers, and you can realistically live on $12 an hour in my area, a 1 bedroom apartment is around $700 a month. People just don’t want to put in effort or do anything that’s uncomfortable and it grinds my gears.
But I’m saying you CAN. If you don’t wanna live off $12 an hour go get a skilled job or just work the cash register at aldis. I’m not sympathetic to people who keep themselves in bad positions because they refuse change. If you are living off $12 an hour, that is due to your own choices and decisions and is no one else’s fault.
You could cap a restaurants profit margin, but even in that case different places have very different fixed costs and they may have debt obligations from an expensive startup cost. So a profit cap could end up putting people out of business or discouraging a company from investing in a new product.
When you dig into the data it looks like capital and labor share are pretty constant when you make the depreciation and inventory adjustments so when companies post higher profits it might just be them selling off inventory. Although that’s kindof a hard case to make for restaurants sense the food can’t really be kept as inventory.