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Problem is that residents will be punished for this more than the businesses.


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It's inevitable unless regulators and consumer activists maintain the upper hand (in which case businesses will complain about a business unfriendly environment).

Badly behaved businesses reap concentrated benefit while imposing diffuse losses on others. It's kind of like how a factory worker in a declining city notices the harm of a layoff much more than the benefit of TVs costing 25% less.


An economic policy based on punishing businesses is not going to work well in the long term.

On the contrary, a lot of businesses punish it.

That just hurts your local economy.

I haven't ever seen any real repercussions for businesses acting against the interest of their customers, aside from high profile scandals. And even then the penalty is usually a tiny fraction of what would be appropriate.

At least the gov't has some plausible accountability to the citizens every time an election rolls around. Especially local gov't.


It's a problem for businesses though

Or you could think of it as enforcing the law would kill the businesses in the area, because you're asking them for a huge additional cost.

Interesting. Do you have any sources re: local business owners having issues with this?

No, not following the law costs the businesses.

1- and this is precisely my point. If they start enforcing it, it would kill the smaller businesses in the current situation - and probably put thousands (millions?) of people in the street.

Thus forcing the businesses to pay or be punished. The business likely has the option of not passing the cost along to the consumer, but in the end they are the one being forced to pay the state.

Small business will suffer. Again.

What do you mean by "hurting local businesses"? Wouldn't more highly paid workers in the area be good for local businesses?

This is going to have unintended consequences. Chances are it brings in a trickle of revenue and triggers silly behaviour rather than making anyone better off.

"Keeping captitalism in check" with over-reaching regulations has consequences too.

Hurting businesses hurts jobs, and hurts people.


It certainly seems to have killed several businesses in my city.

It will do more to force them to reconsider where they domicile their businesses than it will force them to reconsider their comp structures.

It's also unfair to smaller local businesses who cant use the same loopholes and are automatically disadvantaged against their larger competitors.

Unfortunately that just makes a bigger target of the smaller businesses who can't afford such a vigorous defense.
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