July 4 is Independence Day, a celebration of freedom. It gives us the right to (legally) do what we want.
An old adage was if you want to make more money, raise prices. The new adage is, there’s full transparency and this means the laws of economics are viable and active.
The recent goings on with food delivery services is a perfect example of basic economics and how government actions can backfire. Here’s some key points that have been in the news:
- Seattle and New York put in minimum wage requirements for gig delivery drivers.
- Pay went up.
- Prices went up (makes sense).
- Orders declined. Forty-five percent in Seattle in Q1 2024 and an undisclosed amount in NY.
- Hours went down.
- The number of drivers went down.
- The time to earn the same amount of money went up.
The intent was admirable, but the vision wasn’t there. Just like with any business decision, it’s not simple.
Have a great Independence Day.
“Patriotism is supporting your country all the time and your government when it deserves it.” Mark Twain
“You sometimes wonder how our government puts on its pants in the morning.” Jon Stewart