Wages will need to go up, which means the costs of goods and services will need to go up, and the city will get even less affordable.
Wages will need to go up, which means the costs of goods and services will need to go up, and the city will get even less affordable.
Well put, had to laugh.
No, you can't.
Artists seek low costs.
They tend to create progressive locales.
Then the gentrification cycle sets in.
I'm not saying all low-rent regions will attract art, but it's possible to generate some pretty significant cultural shifts.
San Francisco / Berkeley becoming capitals of counterculture was not an entirely obvious outcome from the perspective of the 1930s, 40s, or 50s. A friend recalls the Haight-Ashbury when it was largely a Greek ethnic neighbourhood.
"I would put it this way: there are many ways to impose a Georgist land tax, fiscal insolvency being one of them. Very wealthy people and institutions know that if they relocate to Chicago, they will be required to ante up for the final bill. And so they stay away. For a city of its size and import, Chicago just doesn’t have that many billionaires, nor do I think a rational billionaire should consider moving there.
In other words, there is a pending wealth tax. Either directly or indirectly, this will place fiscal burdens on Chicago land, the immobile factor. And this keeps down rents in Chicago now."
It’s a place full of amazingly creative people but let the rents climb and you’ll end up like London.
There are very few grocery store clerk, delivery drivers, and coffee baristas who live in UES. They've already been pushed out to the edges of Manhattan and other boroughs.
The 20-30 minute commutes have been snapped up by younger people who have been priced out of the 10-15 minute commutes. You currently see a lot more ads for rentals that seem to stretch the boundaries of neighborhoods (e.g. West 110th Street == "Upper West Side").
The wait lists for rent stabilized apartments are incredibly long, so the chances of a grocery store clerk, delivery driver, or coffee barista getting into more affordable housing closer to their place of work is pretty slim.
And good luck if you're an hourly employee with a long commute when the MTA lets you down in the form of a delayed train, or express-turned-local, etc. You're either penalized by your employer (or angry customers) for arriving late, or you penalize yourself by leaving the house 30-45 minutes earlier and sitting around unpaid until it's time for your shift to start (ignoring any cost of leaving the house earlier, e.g. cost of extra child care, or risk of being unreachable on the subway by a dependent).
To be fair, they've been doing that particular editorialization for over 20 years. Bloomingdale was subsumed into the expanding morass of the UWS in the early 2000s; Morningside is next.
Perhaps not minimum wage, but if the Bay Area is any evidence, people will commute that much time for a low wage job.
They are often losing out longer term (i.e. not considering the accelerated depreciation of their car), but in the thick of day to day survival they might not see that slowly happening.
Or do the places paying low wages now just need to accept a smaller profit margin or lower executive pay?
It's unquestionably true that there are some places that pay low wages that cannot afford to pay better wages without increasing prices; however, we seem to have collectively decided that that's the only way wages can increase. But that ignores the fact that corporations in all (or at least many) sectors have been enjoying record profits recently, and executive-to-worker pay ratios are absurdly high.
Remember that next time you see someone claiming that raising wages necessarily means that prices will need to rise.
I don't disagree for a second that, say, Starbucks could take a hit, reduce profits and still be able to operate successfully in New York. But I'd argue a lot of what makes New York the city it is is things like small independent restaurants that already operate on very thin margins. They also have no fat cat executives pocketing the spoils.
So, perhaps, yes, the city could survive without increasing wages but I worry it would result in a very faceless city filled with nothing other than big corporate entities that are able to swallow the cost.
McDonalds and Starbucks eat a wage increase in stride, small restaurants and businesses just go under.
A few things:
1. The premise there (when there are plenty of jobs elsewhere) is kinda flimsy -- its already easier to find jobs in larger cities (that's why people move there), and nothing guarantees this won't get worse
2. Yes, there is a breaking point where people can't afford (in terms of time and/or money) a long and/or expensive commute. Humans have a workaround for that. Its called slums.
Given that, I'm just not sure where the breaking point is.
It seems that higher rent is more likely to reduce standard of living first. Low wage earners who really want to be in the city will find a way, which generally means having a roommate and then I guess having even more roommates. I do wish NYC would build more dense buildings though so that a barista doesn't need to have 6 roommates.
That is already what happened. It just never stopped happening. The end game is... it keeps happening. It's just more noticeable right now because of high inflation and the stark contrast from the pandemic years.
Or course it'd be great if we weren't heading that direction but try convincing voting demographics that property values should be lower.
Which shouod decrease the number of people living there, putting a limit on cost growth.
They absolutely will, this concern has never really made sense to me. Poverty is like a badge of honor for many folks, and the harder one works for the lower the pay ends up being a little game some folks like to engage in, almost as a self flagellation; "I suffer therefore I'm noble."
Just look at some of the most oppressive places in the world, and how people continue to opt into that abject horror because it's a path to marginally help themselves or others they care about. NYC is nowhere near approaching the levels of, say, Qatar, in how it treats its workers, and a 90 minute commute each way wouldn't do much to push NYC closer to Qatar on that particular front.
You think we're at the bottom? No, we can go so much lower. So very much lower...
Another is these people are stuck. It takes money to pack up and leave. If the everything is costing more and more and more, their ability to save and leave goes down and down and down. Eventually they'll be forced to leave (somehow); the haves will see to it.
> "I suffer therefore I'm noble."
That's cruel.
Have you really never met anyone who's oddly proud of how hard they work, despite how little they earn? I grew up around these people, this view was more common than drug use, more common than gambling, almost consensus that the poor folks were the real heroes of the story.
"Stuck" is indeed the right word, but no they won't get "unstuck"; their lives will just get worse and worse. Like I said, there's just so much lower we can go here, people don't even realize where the bottom is.