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Comment by iicc

>Raising wages has an inflationary effect on the prices in the restaurants/bars

That implies consumers spend differently if they know the actual cost ahead of time, otherwise service inclusive pricing would make no difference. ie the whole industry is exploiting anchoring effects.

Removing anchoring effects would make restaurant businesses less profitable, and consequently the properties that host them less valuable, so lower rents.

There are clear incentives for pushing an inflation narrative.

parent iicc 2 years ago

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