The entire rest of the local economy. If you eat up a significant portion of the local labor poor with very high wages, who is left to do all of the normal local jobs? Working in retail, food production, sanitation, construction, education, etc.
What happens to prices when a significant portion of the workforce suddenly has tons more money? What happens to the people not lucky enough to have the new high paying job? What happens to the local economy when you leave?
When you pay locally crazy high wages you seriously distort the economy for everyone, it doesn’t just magically snap to a new normal where everyone is happy and free, you can very easily create huge wealth disparities that make situations for many people way worse off, and the people who “win” that you don’t employ were generally already winning.
Just pouring money into a highly impoverished place can be very harmful. “Above average” is good, “ridiculously above average” and you have to start considering your effects across the economy.
What happens to prices when a significant portion of the workforce suddenly has tons more money? What happens to the people not lucky enough to have the new high paying job? What happens to the local economy when you leave?
When you pay locally crazy high wages you seriously distort the economy for everyone, it doesn’t just magically snap to a new normal where everyone is happy and free, you can very easily create huge wealth disparities that make situations for many people way worse off, and the people who “win” that you don’t employ were generally already winning.
Just pouring money into a highly impoverished place can be very harmful. “Above average” is good, “ridiculously above average” and you have to start considering your effects across the economy.