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Okay so one of the games I like to play is "how is everyone right?"
Especially with charged up shit like economic policy.
Let& #39;s have a go shall we?
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Especially with charged up shit like economic policy.
Let& #39;s have a go shall we?
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So this unemployment thing - there are a bunch of classically econ- "-progressive" and "-conservative" takes out there, but for the sake of brevity let& #39;s reduce them to simple caricatures of their respective positions.
First the conservative one.
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First the conservative one.
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Econ-conservatives kinda believe that, since the government is paying people to not work, they& #39;re not working.
They& #39;d hold that the policies here are insane, and pandemic support is creating a ton of damage and ruining the available supply of labor.
"You& #39;re killing SMBs."
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They& #39;d hold that the policies here are insane, and pandemic support is creating a ton of damage and ruining the available supply of labor.
"You& #39;re killing SMBs."
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Econ-progressives would hold that employers should simply pay more, and the fact that people are choosing not to work is a sign that the lack of wage growth and the continual beatdown on labor is finally coming to a head.
"Fuck you, pay us (labor) more."
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"Fuck you, pay us (labor) more."
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Now, see: I tend to think we can take a view where both parties are right.
Yes, people are not being paid enough. The lack of wage growth is a real problem.
And yes, trying to pay unskilled workers more will ruin many business models (SMBs more than most).
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Yes, people are not being paid enough. The lack of wage growth is a real problem.
And yes, trying to pay unskilled workers more will ruin many business models (SMBs more than most).
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Most non-tech businesses are simply not in a place to pay more - they& #39;re running a P&L (overtly or implicitly) that presumes cheap labor so they are & #39;addicted.& #39;
Now, the econ-progressives would point to this and say "it& #39;s high time for a comeuppance to employers."
Likely so!
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Now, the econ-progressives would point to this and say "it& #39;s high time for a comeuppance to employers."
Likely so!
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BUT as the econ-conservatives would rightly point out, a right-sizing of pay basically just mangles (kills?) mom & pop businesses and advantages already-dominant tech megacorps who can simply absorb this cost on their P&L.
In fact, some would argue they already have.
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In fact, some would argue they already have.
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And that& #39;s problematic because a broad, diverse business ecosystem really is part of the magic of the American economy.
It& #39;s extremely problematic for us to weaken or lose that dynamic (note: also problematic for the rest of the world if we do...).
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It& #39;s extremely problematic for us to weaken or lose that dynamic (note: also problematic for the rest of the world if we do...).
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And so what I& #39;d note here is that like... both sides sort of want the same thing. We want:
- Better Gini coefficient
- Less systematic self-aggregation of capital and power
- Strong American economy that plays to our strengths
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- Better Gini coefficient
- Less systematic self-aggregation of capital and power
- Strong American economy that plays to our strengths
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And despite all the spicy, highly partisan, polemical takes out there (many of which are, indeed, well made and also hilarious) it& #39;s probably going to take us synthesizing the wisdom of both sides to win here.
It always has, & this is a tricky one.
But I like our chances.
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It always has, & this is a tricky one.
But I like our chances.
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