alt Hacker News> Big issue though is knowing that even if I pay someone 2x the going rate for an employee it still will not be a living wage.
Being mindful of wages is great, but eventually you have to accept that creating a job at a less than ideal wage is better than not creating any job at all. If the pay is not enough then you’ll get the signal through being unable to hire because workers are taking better paying jobs.
An unintuitive feature of the job market is that creating more low paying jobs actually puts upward pressure on wages. Ideally the low end of the job market should be saturated with job opportunities, which creates a situation where employers have to compete with each other to raise wages to find and retain employees, which means pay goes up for everyone.
So don’t let worries about not being able to pay as much as you’d like get in the way of paying anyone at all. The alternative (less jobs, more outsourcing) is worse in every way.
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> Being mindful of wages is great, but eventually you have to accept that creating a job at a less than ideal wage is better than not creating any job at all.
For the employee, maybe. For the employer, it depends on how much time/money you have to put into training and what turnover is. Paying non-living wages leads to high(er) turnover because people will leave for anything better.
I will reply to this post to clarify (although I will be responding to several).
"Living wage" in my area is $40/hr. That is just to live, not thrive or gain.
Rent prices have gone insane [1], which in turn have drove up COGS. Since COGS have gone up the real estate investors have raised their prices on rents/housing to make up for the increase. The feedback loop has gone on too long...I am concerned the only option is collapse and for a lot of investors to lose money. This will feedback into the system even more...it will not benefit either the renter or the investor. As they say..."the market can stay irrational longer than you can stay solvent".
I run a very small company that is largely bootstrapped. I fix all my own machines, do my own setup, move my own equipment. Personally, I work on every step from design through packaging (janitor>CEO). There is not enough money to pay a living wage for others...so I end up doing everything myself. 70hr weeks are not uncommon. (I also cook my own meals, fix my own car and bake my own bread...otherwise I would not make it)
If you have not been a renter for the last 10 years you may not have noticed. Building more is not helping since the only things being built are done so they can set them to the new "normal" price. It is to the point where they consider an "affordable home" as $400k (in my area they literally named this development as "Miracle on Britton"). Meanwhile the average renter makes <$40k/year.
I have not been outsourcing more due to this. Just working harder myself...but even so I barely get by. 5 years ago I gave up the hope of ever buying in this area [2], currently I am just working to stay here long enough to take care of family. If I did not have that I would be long gone.
Doing what I can to bring back manufacturing to the area, but I am a small fish working mostly in Opensource Hardware. If the project starts making money again very likely it will be cloned to the point where there will be no way to make profit (already happened once).
[1] https://www.zillow.com/rental-manager/market-trends/coeur-d-... [2] https://www.zillow.com/home-values/136166/coeur-dalene-id/
One nice aspect of automation is that we are able to pay people well due to the leverage. I'm proud of the fact we've been able to create a lot of good well paying high tech jobs in an area that really didn't have many.
The problem is almost entirely that housing is too expensive.
"Living wage" is an awful term because it intrinsically holds employers responsible for real estate costs, which are strongly correlated with higher pay (read: as employees get paid more, housing costs rise to match it).
$20 an hour is not awful pay when you can rent for $600/mo. So the actual fix is to just build more housing, and it will bring back the viability of all these disappearing jobs.