Thursday, January 25, 2007

San Fran Cracks Me Up

Poor small businesses.

3 comments:

Anonymous said...

Man San Francisco's economy must really be tanking thanks to all of these stupid liberal ploicies. I bet it's like a ghost town now, with everyone moving away to escape these stupid policies. Empty streets, tumbleweeds, the whole bit.

Diatribe said...

Forcing businesses to pay for sick days and help your neighbor days. COme on. You can see how that can hurt small businesses. It can force them to hire less people or to pass the expense of the consumers. It is unfortunate that a business cannot make that determination on their own. Instead a law mandates it. I understand it was voted on - but of course employees are going to vote for it - they only get upside - they do not see and fully understand the effect it may have on the owners of their work places.

Anonymous said...

Possibly. But two things:
1. Perhaps workers who take an extra day off for whatever reason are more likely to go to the store and buy stuff, increasing income for the various businesses in the area. I know a lot of stores that have way more employees than they need for most of the day, because they need to be ready for rush hours (for instance, lunch hour or when work lets out), so maybe letting workers have more days off keeps those extra staffers busy, leading to more profit without hiring more people.

2. Maybe local businesses aren't hurt by this any more than large retailers; maybe the employees at Big Faceless Incorporated feel fine about abusing this legislation, whereas workers at small local businesses are friendly with the owners (or ARE the owners) and won't abuse the policy and will take extra tie when they know it won't hurt business.


Now I'm not saying that I really think either of these are neccessarily true, just that they're examples of the type of thing that might mitiggate your intuitions about how this type of legislation hurts the economy.
What I actually think (and what I was trying to say with my original post about San Fran having a good economy despite all these crazy legislations) is that I have no idea how the economy works, and I really really don't think anyone else knows how it works well enough to make predictions about the effects of these types of legislation. That being said, I'm fine with individual cities trying these things out and finding out empirically what the effect is.