I wrote a comment in Fellow Gentleman Christopher Carr’s sidebar post and he asked me to post it to the main page and then I read that comment and then I posted this.
My comment reads:
For the record, though, I don’t think that lowering the minimum wage would help in this present crisis.
There are tons and tons of little regulations that come with opening a business and *THOSE* are the main problem right now. I’ll repeat myself and talk about the various hoops that you need to jump through if you want to do something as simple as opening a bar downtown… just a simple place with beer and maybe some mixed drinks. There are onerous regulations that you have to meet (that have nothing to do with making sure that people don’t die of ptomaine) that cover everything from proximity to schools to proximity to other places that also sell beer and mixed drinks (downtown, you need to get permission from other businesses to open a place that has an alcohol license… if you don’t get the necessary signatures on your petition, you can’t open your place. Which means that a couple of bars on a block can collude to refuse to let a third place open up).
If you want to serve food (nuts, pretzels), there are more hoops. If you want to have a grill and serve hot food (perhaps even with a fryer), there are more hoops.
It’s easier for a guy to say “you know what, I’d rather work for Massive Conglomerate. It’ll be less hassle.”
Massive Conglomerate gets bigger. The guy who would have hired a bartender and a person to walk drinks around is now a cubicle monkey who is counting down until he gets outsourced to Singapore.
Those little regulations that make it tough to open one’s own business play into the hands of Massive Conglomerate.
Consider this an open thread.