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by legacynl 296 days ago
> making the labor market in an give jurisdiction hostile enough that companies opt out entirely.

At some point you'd have to realize that continuing to give companies what they want out fear of them leaving, will only incentivize companies to be scummier and scummier.

Second of all, how would you imagine companies opting out of a jurisdiction? Wouldn't that create an enormous hole in the market for other less-scummier companies to jump in, albeit at perhaps lower margins?

2 comments

>Wouldn't that create an enormous hole in the market for other less-scummier companies to jump in, albeit at perhaps lower margins?

If non-scummy companies realize that even trying in that region will lead to lawsuits by malcontents and losers, they'll leave too. You're left only with the scummy ones, because they figure they'll have skipped town before the lawsuits come rolling in. And if your regulatory framework discourages that heavily enough to dissuade them, they'll stay away too.

When circumstances are hostile enough, no one wants a piece of it. Always lower-hanging fruit elsewhere.

> Wouldn't that create an enormous hole in the market for other less-scummier companies to jump in, albeit at perhaps lower margins?

A certain amount of margin is required for the company to even try to do business. Unfortunately, when the "let's turn the screws on this company" discourse starts getting Old Testament, people stop considering that.

If you want a good real life example of this, look at CA insurance companies. The state limited the rates they could charge to the point where many of them simply stopped signing up new customers and started dropping old ones.

There were no new insurers to take their place because it wasn't profitable for them either.

Companies ALWAYS pretend that this will be the result of regulation, but that doesn't change the fact that they're sometimes right.