[quote=SK in CV][quote=livinincali] You worry that McDonald’s might make too much money but you have no consideration for how much harder you just made it for Joe the Pizza guy to start his 2nd restaurant.[/quote]
Why should we care whether it’s hard for Joe the Pizza guy to start his 2nd restaurant? Is there a shortage of pizza joints? Is it a good thing if he only has to sell 20 pizzas a day employing people at the current minimum wage? Is there some reason public policy should support that?[/quote]
Historical evidence shows that most job creation comes from small business creation. Encouraging small business creation would likely be the most effective policy at creating economic growth. My opinion is we should let the free market decide. If Joe the pizza guy can open a new pizza joint and find kids willing to work for tips it’s fine with me. There’s obviously some negative side effects and perhaps some worker exploitation, but in general I think it would be good for growth.
Government’s involvement in trying to level the distribution of goods and services via regulations has led to an environment gives advantages to large businesses. The cost for Walmart to comply with regulations per employee is much lower than the cost per employee for some small retail business.
