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The service workers move somewhere else where they can afford to live. The ones that remain can demand a higher price for their work

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...When they are actually working. But if you are fired from the job, you still need to pay rent for the time it takes to find a new job.

Having high rent reduces your personal “runway”. This makes bootstrapped startups hard and it makes like as a lower-income worker very risky/stressful

If you don't like the risk/stress there are plenty of other places to live. If you choose to live in SF when you can't afford it then that just not a wise decision. Eventually the prices will even out and you will just have to pay $30 for a sandwich.

Is that happening? Are service workers in SF paid a living wage?

Or are people like fast food workers being paid minimum wage and commuting 2 hours?

That is their choice. The market will only correct if people make rational choices.

For a lot of people, it isn't a choice. That's where the problem sneaks in.

The market you believe in doesn't exist in a vacuum. The world is far more complex than that.

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