this post was submitted on 19 Dec 2024
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Politics
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I recently heard on the news in passing (or at least I think that's where I heard it) that shoplifting has gone up by like 30% over recent years.
They were talking about the new ways stores are incorporating security measures, and it made me laugh a bit. All this time and money spent on increasing security when they could rally around paying people better and decreasing inflation.
For example, if you want people to spend money, they need money to spend. Mind blowing stuff, I know
I think it's unfortunately a tragedy of the commons/prisoner's dilemma problem
Simplifying, a single store is not going to be able to improve pay for all the underpaid members of society, but what they can do is run thinner margins while staying in business (pay employees less, spend more on security, etc). Paying only their own employees more also does little to reduce the overall chances of theft.
Perhaps a better global equilibrium exists at higher wage rates, but there are limited options at local levels. For low-end wages, I think the downward pressure exceeds the upward wage pressure of the "free market" b/c the negotiation is between someone making a less profit vs someone failing to make a living -- the negotiating power is not balanced. This is why IMO minimum wage to some degree is important.