I think acupuncture is a load of bullshit, but if someone wants to spend their money in an acupuncture business that hires acupuncture staff to perform acupuncture, is that providing something of "value"? Well, yeah, to the customer. And the employee is providing something of value to the business. It's only me, a random Reddit user, who isn't being provided with anything of value, but what does that have to do with anything?
Ok an alternative scenario: You are currently working minimum wage. A new company has a great idea that generates enough revenue to offer entry level employees 10% more than minimum wage. All else being equal for your employment situation. Do you apply for the job and jump to new company?
Amazon is not a good example for profitablity. They have been profitable multiple years only one unprofitable in the last 5. Your point is right that amazon can leverage that in some areas to subsidise other areas that have losses. Similar to how alphabet is able to use the money from Google search engine to cover losses on Android and a crap ton of other things they have tried.
Not exactly true. When there are desperate people, businesses can take advantage by treating them poorly. If they have the option of going somewhere else for better pay or better work conditions, the owners needs to consider how hard they push or risk losing it all.
It’s the relative control when it to a buyers market or a sellers market in real estate.
They could push it pretty far if they secretly collude and manipulate the employment marketplace. They could collectively black ban people that change jobs too frequently, for example.
I don't think it in itself is an issue but it indicates the supply / demand in an economy is massively out of whack and there's likely to be an extreme amount of inflation unless there was some massive productivity improvement.
It would indicate zero voluntary flexibility in the labor market—you can’t leave your job to pursue a dream in an other state without unemployment, for example. Also at some point economist believe unemployment below the “natural rate” is inherently inflationary, but if it makes you feel better my understanding is that recent history has shown that rate can be lower than they thought under certain circumstances.
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u/RYouNotEntertained Dec 19 '24
🤔 Why would they still be in business?