The Economy

The labor market is not tight. It's flush -- towards better jobs and away from restaurant gigs. Who's it bad for then? The owners.

Frankly, I'd rather that be the case that it being bad for the workers.

I have a lot of friends who work as waiters and bartenders and most don't even have health insurance, which restaurants don't typically provide. You can bet the owners have health insurance, though. So during a pandemic, I'm supposed to feel sorry for the health-protected owners versus the employees who maybe left to get a job with health insurance? Or took a job that paid enough to get it?

Fewer restaurants and bars is just a market correction. There were too many.

 

Sure. When the USA was on the gold standard in the early 70's an ounce of gold was convertible at the price of $35 to one ounce of gold. But the government can change the price at which it converts gold. For example, FDR moved from converting gold at a price of $21 an ounce to $35 n ounce.

If the British were converting god at the rate of five pounds for one ounce of gold and when the FDR changed the price then the exchange rate went from $4.20US to a British pound to $7US per pound. (I made up the British numbers)

 

yes, you're defining tight in a way that seems the opposite to me. But I get what you mean.

 

Very good point here. The tipping model is based entirely on a restaurant economy in which workers are making $2.13 an hour and the tips supplement that income. If my server is now making $15 an hour, why am I still tipping 20 percent or more on the meal? Especially in a city with a ridiculous meals tax like the one I currently reside in. It's the reason I don't tip at a Starbucks or an Einstein's Bagel. Those workers are paid an actual normal wage, not the pittance that servers make.

 

I think this is happening in a lot of places/industries. It seems as if we're truly right-sizing, at least in terms of what is really needed, and what would be best supported. I completely agree with you that all this is showing is that we don't need a lot of these businesses, and that we have way too much of certain things.

 

I don't recall what the market price was at the time that the U.S. completely abandoned the idea of gold backing the currency in the '70's, but for certain it was officially $35/oz while buying gold in the world market was several times that.

 

As to the job market and restaurants and bars having trouble finding new employees, you should go to Reddit and hit the r/antiwork forum. There are literally thousands of posts from people describing the job conditions and management decisions that led to them quitting and going elsewhere or changing careers completely. When you scan it a while you'll start to see patterns, particularly in the food and beverage industry. There are also some management abuses that repeatedly appear there. Ragu, you should probably be sure you've taken your blood pressure meds before you go there. Very different mindset applied in there.

 

Reduce executive compensation!?! MARXIST SOCIALISM COMMUNISM!!!

 

Man, I’d like to buy gold for $35 per ounce instead of the $1,781 spot price it is today. If you get into buying gold coins, the price is considerably higher.