tag:blogger.com,1999:blog-4815867514277794362.post5531632692898413141..comments2024-03-08T06:18:28.125+11:00Comments on Bronte Capital: Lessons in my laundry - part 1John Hemptonhttp://www.blogger.com/profile/03766274392122783128noreply@blogger.comBlogger37125tag:blogger.com,1999:blog-4815867514277794362.post-10923707900715429022018-01-24T13:27:50.100+11:002018-01-24T13:27:50.100+11:00I'm not sure about the overall prevalence of p...I'm not sure about the overall prevalence of paying people under minimum wage, but my reasonable level exposure to the hospitality and construction industries in Melbourne shows that it's very common among immigrant groups particularly. Some examples I know of:<br />- Cleaning company employing Indian students who get paid say $8-10hr - generally accomplished by under-reporting hours worked. <br />- Chinese plastering teams who I estimate are getting paid perhaps $12-13 at best given the quoted figure and their time on site, materials cost etc<br />- Cambodian and Burmese berry-picking teams who are individually paid probably under $5/hr<br /><br />These are all cash-in-hand jobs of course, no tax. The other interesting factor with these immigrant groups is that they often have access to cheaper food/accommodation through in-group networks than society at large.<br /><br />In general these groups are often sending significant portions of their income to relatives back home. In many cases they are doing an incredible breadwinning job as far as their families are concerned so they are pretty content with the status quo.Lukenoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-23222928505450610772017-10-12T02:59:18.799+11:002017-10-12T02:59:18.799+11:00Obviously the motivation behind why there is less ...Obviously the motivation behind why there is less low pay work is that we do our own pressing, cooking, cleaning and youngster disapproving as a reaction to the high cost of these administrations <br /><br />One moment, there are a cluster of explanations behind that, and I don't figure a great deal of them would be budgetary. <br /><br />My clothes washer runs for the most part in the vicinity of 06:00a and 08:00a as I neglect to do it amid the day, I stack it up before going to bed when I recollect that, I don't figure any clothing would be open at 01:00a and I wouldn't have any desire to drag my clothing around amidst the night. <br /><br />I have 3 laundrettes adjacent, I know one charges $15.00 for a huge sack of what ever you can stuff into it. When I initially moved into the zone and didn't have a machine, I once in a while left it there, yet rather would utilize their machines, I couldn't sit tight for the 12 hours pivot, they are never occupied, scarcely anybody utilizes the laundrette, it's speedier and less demanding to stack it into your own particular clothes washer. more finished the present date heaps of application accompanies this <b><a href="http://onata.com/" title=" laundry pro information providers " rel="nofollow"> laundry pro information providers </a></b> you can experience that one too.Anonymoushttps://www.blogger.com/profile/00964138284180332816noreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-30015696964138394852011-01-28T14:23:38.047+11:002011-01-28T14:23:38.047+11:00Of course the reason why there is less low pay wor...Of course the reason why there is less low pay work is that we do our own ironing, cooking, cleaning and child minding as a response to the high price of these services<br /><br />Not so fast, there are a bunch of reasons for that, and I don't think a lot of them would be financial.<br />My washing machine runs mostly between 06:00a and 08:00a as I forget to do it during the day, I load it up before going to bed when I remember, I don't think any laundry would be open at 01:00a and I wouldn't want to be dragging my laundry around in the middle of the night.<br />I have 3 laundrettes nearby, I know one charges $15.00 for a large bag of what ever you can stuff into it. When I first moved into the area and didn't have a machine, I rarely left it there, but rather would use their machines, I couldn't wait for the 12 hours turn around, they are never busy, hardly anyone uses the laundrette, it's quicker and easier to load it into your own washing machine.Scotthhttps://www.blogger.com/profile/07665862540150840319noreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-79509466618491007252011-01-27T11:11:17.524+11:002011-01-27T11:11:17.524+11:00gnat,
In Sydney I regularly see people employed t...gnat,<br /><br />In Sydney I regularly see people employed to hold up signs. Over Christmas there were some in Santa suits!!!<br /><br />(Note for non Aussie/Kiwi readers, Christmas is mid summer remember. You'd have to be pretty desperate to stand around in the summer heat, holding a sign, dressed in white and red fur.)<br /><br />Not just in Sydney either where there is a regular supply of foreign students (who sometimes run out of money and can't legally get a job). Some were on the central coastal towns of New South Wales, where there were surf beaches a short walk away. They must have needed the money.<br /><br />I guess that on high demand locations, buying a sign location costs more than paying $15/hour (maybe $10-12 under the table). And the person holding a sign stands out more than all but the biggest and most expensive signs.drpathttps://www.blogger.com/profile/03559238786023468867noreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-67885241049885875292011-01-26T19:58:28.822+11:002011-01-26T19:58:28.822+11:00I left Colorado for New Zealand just as the craze ...I left Colorado for New Zealand just as the craze for people waving signs on streetcorners took off. At first I thought they were religious nutters ("THE END IS NIGH" etc.) but the signs are all just advertising for mattress stores and 40% off at Cartoys, that sort of thing.<br /><br />At that point I realized there was so much unemployment that it was economic to pay people to wave a sign on street corners (and people found it economic to take the job). I left boggling. In NZ, as in Australia, the base cost of living is so damn high that the idea of paying someone to stand on street corners is laughable.gnathttps://www.blogger.com/profile/09147039228009975644noreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-27431003948063235692011-01-25T18:40:54.760+11:002011-01-25T18:40:54.760+11:00I am an American who has moved to Australia. (See ...I am an American who has moved to Australia. (See how I have established my credentials to have an opinion! :) I pay $3 to have my shirts ironed at the place across the street in Sydney (Surry Hills).<br /><br /><i>Mostly Australia has run unemployment a percent or more higher than the United States</i><br /><br />The US has a prison population that is 1% higher than Australia's. In other words unemployment + prison population = same in both countries; the US simply puts (some of) its unemployed in prison and so they don't show up in "unemployment statistics".<br /><br />Merely comparing unemployment rates is overly facile.Justushttps://www.blogger.com/profile/00022071780527536587noreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-88270876248596799302011-01-09T18:26:47.036+11:002011-01-09T18:26:47.036+11:00That's an interesting observation, which reall...That's an interesting observation, which really challenges a rational economic explanation. And, it makes me wonder if more things than we realize may be determined by random events that lead to one equilibria over another. <br /><br />Once you've developed a culture of low-wage work, it would likely be very hard to change. Everyone's expectation will be that certain types of work are poorly compensated. <br /><br />Similarly, if through historical chance, service work was relatively well paid, then there would also be very large cultural barriers to paying low wages for that work. <br /><br />Each of these cultures could exist in fairly deep local minima, and hence be very difficult to change.John Pnoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-84375213469601731802010-12-15T22:11:33.995+11:002010-12-15T22:11:33.995+11:00Consider the new Australian laws prohibiting emplo...Consider the new Australian laws prohibiting employers giving a sub-3 hr shift.<br /><br />Every school child who used to do 2 hours at the video store on the way home etc - all banned. <br /><br />That means 'proper' employees on minimum (USD$18+/hr) wages which is why in Perth it costs USD4 for a capaccino!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-67481998914081963632010-12-07T07:36:23.575+11:002010-12-07T07:36:23.575+11:00Part of the reason this stuff is cheap in the U.S....Part of the reason this stuff is cheap in the U.S. is that a huge portion of the voting population fancies themselves as entitled, if not actual rentier, types. So the politics, well beyond the minimum wage, goes towards keeping a huge portion of the population living in seemingly wealth paradise. This works by keeping a lot of labor busy and low wage! <br /><br />In New York, since the spending patterns are less likely to involve cars and large suburban houses, other signs of 'success' abound. The best, and often cheapest produce in the country, as well as laundry services are found there. My poor Brooklyn apartment sharing friends in arts administration used to use a laundry service with drop off and pick up!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-37699565137736836522010-12-03T18:49:41.653+11:002010-12-03T18:49:41.653+11:00I'd say that a lot of the laundry and similar ...I'd say that a lot of the laundry and similar services in Sydney would be provided by small businesses, and yes, they'd be working for what would work out as less than minimum wage often.<br /><br />But once it drops too far below minimum wage, their friends and family start telling them to give it up and get a job. (Been there, done that).drpathttps://www.blogger.com/profile/03559238786023468867noreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-67946398423106934092010-12-03T11:47:58.188+11:002010-12-03T11:47:58.188+11:00Many of the laundries/dry cleaners are owner opera...Many of the laundries/dry cleaners are owner operated in the United States. They aren't working for wages but profits. From your comments am I to assume all people working in Australian laundries are wage earners?Jeannenoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-4029933059061462192010-12-03T11:41:03.692+11:002010-12-03T11:41:03.692+11:00we live in brooklyn.
when we tell our friends a...we live in brooklyn. <br /><br />when we tell our friends and family who live in the rest of the country how much we pay our part-time nanny, they gasp at how expensive it is. at least 2x. preschools and private schools in brooklyn are at least 2x the rest of the country, and they are more expensive in manhattan. <br /><br />so you're only seeing the tip of the differential.babar ganeshhttps://www.blogger.com/profile/01898299856773302141noreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-68929508259497738422010-12-03T11:33:22.278+11:002010-12-03T11:33:22.278+11:00Funny story on minimum wages...in Hong Kong, live ...Funny story on minimum wages...in Hong Kong, live in maids are affordable, with a steady supply of Filipinos (previously) and Indonesians (currently). The rich and jetset sometimes drag them on overseas trips. Well, one industrialist had a maid accompany him to Australia and stayed for several months each year. A few years later, maid clued up to minimum wages in Australia, got a lawyer, and sued for shortfall. I understand the figure claimed was in substantial 6 figures, and the payout would have been enough to set the maid up for life back where she came from.<br /><br />Fair, not fair? Moral, not moral?Peterhttp://www.phanlawyers.com.aunoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-59560512736442973542010-12-03T05:53:37.205+11:002010-12-03T05:53:37.205+11:00On a trip to Australia, stepped massively on an ur...On a trip to Australia, stepped massively on an urchin surfing Lennox Head. A trip to the Ballina emergency room to have a good doctor, who also surfed.<br /><br />Two hour of diligent digging, a tetanus shot later. Was sent home with enough gauze, tape, antibiotic lotion, and pills for the next two week.<br /><br />Since I was not a citizen, getting that "free" healthcare, was directed to the billing department to pay the bill.<br /><br />$20 total, for a job that would have cost a couple thousand in the States.<br /><br />Paid in cash, and requested a receipt. <br /><br />Two months later, received a bill from the Australian National healthcare system for $20.<br /><br />Send back a copy of the bill, and never heard from the hospital again.<br /><br />It must have been too tempting for the woman in the billing department. As with the "free" part for the locals, she most likely never sees cash payments.<br /><br />anon,<br /><br />DobbsAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-67679387173875975112010-12-03T04:46:56.058+11:002010-12-03T04:46:56.058+11:00we work harder than aussies, have greater scale, l...we work harder than aussies, have greater scale, less rigid labor markets, more competitive business marketplace, etc. as anyone who has spent much time in aus, you guys have a nice fixed game. hoorooAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-75556767065376708482010-12-03T03:34:53.111+11:002010-12-03T03:34:53.111+11:00"If you are minimum wage worker and you have ..."If you are minimum wage worker and you have a job it is clearly much better if you live in Sydney or Melbourne than Brooklyn. "<br /><br />maybe purely from a pure cash pov, but you're ignoring the family and cultural support networks that exist in the us.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-34116609373564970642010-12-03T01:59:40.398+11:002010-12-03T01:59:40.398+11:00John,
Thanks so much for pointing this out. I liv...John,<br /><br />Thanks so much for pointing this out. I live in Brooklyn and work in Manhattan, and you've given me pause to choose a different place to get my shirts done!<br><br />I also lived in Zurich for a while and would point out that there is also the issue of time. Many professionals in New York work SOOO many more hours compared to the Swiss. One clear example is that the standard in Switzerland is for entry level employees to have 4 weeks vacation, plus all the weird Swiss holidays, and sometimes half-day on Wednesday. I haven't run the numbers, but I suspect most New York professionals make less per hour than their Swiss counterparts. Also, it's respected and possible to work less than 100% jobs (50%, 60%, 70%, 80%, 90%). And many women spend more time in the home. 6 months maternity leave is not unheard of, and many take 2-3 years off to raise the kids. Most professional women in New York are back at work within a month of giving birth. So some of what you're talking about is a result of having more women in the workforce, who have less time for household work. This goes as well for strawberries: in the 70s and 80s, women would go out in June to pick strawberries, then freeze and can them. Same for other fruits/vegetables.<br><br />While prices for laundry and childcare are higher in Switzerland, the Swiss have more time to do these things, especially--but not exclusively--women. More time with family, more time at home. They also put more money into things that benefit everyone, such as public transportation and education (I paid for my master's in Switzerland in cash while studying, tuition was $1500 per semester...). But they pay a high price for consumer goods such as CDs and clothes.<br><br />So the Swiss have more time and less stuff. And Americans have more stuff and less time.<br><br />While the suicide rate in Switzerland is higher than in the US, I had the impression that overall, they were happier than Americans.<br><br />Thanks again for you blog. I have learned a great deal from you, and your joy in investing is contagious. Keep it up. Are you still in Brooklyn?Craignoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-77907046473470236202010-12-03T01:29:03.104+11:002010-12-03T01:29:03.104+11:00Interesting perspective....sort of your own little...Interesting perspective....sort of your own little "Big Mac" index. Look forward to hearing moreAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-10498434657985398882010-12-03T01:14:49.786+11:002010-12-03T01:14:49.786+11:00BTW, Are you the same SBHS John Hempton?BTW, Are you the same SBHS John Hempton?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-61051247577530979582010-12-03T01:07:12.655+11:002010-12-03T01:07:12.655+11:00My all time favorite laundry story, I was staying ...My all time favorite laundry story, I was staying for three days in Vienna at the Airport (Hilton) because at had meetings at the airport.<br /><br />Went to the lobby to enquirer about having a few shirts washed, was informed that MINIMUM time for laundry was 7 days.<br /><br />I mentioned to the concierge that they probably don't have much demand for 7 day laundry and only as an Austrian could, he reply with a straight face: NoFrozen in the Northhttps://www.blogger.com/profile/04901959687094626879noreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-74161991024778036662010-12-03T00:20:34.881+11:002010-12-03T00:20:34.881+11:00This issue has always frustrated me, in my case, L...This issue has always frustrated me, in my case, London vs. San Fran.<br /><br />1 shirt:<br />$1.50 vs. £3.50.<br /><br />Whoever suggested that the odds of paying lower than minimum wage is the same in Australia as in the US should probably try opening an Atlas before their mouth. Moron.<br /><br />PS Sorry to hear about the accent issues. They probably thought you were a Brit (seriously).Nickhttps://www.blogger.com/profile/01164675502109841117noreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-21434006585244581512010-12-02T23:40:23.454+11:002010-12-02T23:40:23.454+11:00Good stuff: two nit-picks.
It's not been my e...Good stuff: two nit-picks.<br /><br />It's not been my experience that either Aussie or Yankee strawberries are worth eating. But no-one could muck up raspberries, could they?<br /><br />"Dry cleaning" - I'm sorry, I'm British: can you explain what that is?deariemenoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-37127444582078336412010-12-02T23:15:33.169+11:002010-12-02T23:15:33.169+11:00I also realized I don't own an ironing board, ...I also realized I don't own an ironing board, and it's not because I send my clothes out, but due to the miracle of modern wrinkle-free fabrics! (And in no small part the lesser miracle of being a dishevelled scientist)Potatohttp://www.holypotato.netnoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-79115166655364746222010-12-02T22:37:38.437+11:002010-12-02T22:37:38.437+11:00Recently moving from Sydney to London, I have foun...Recently moving from Sydney to London, I have found laundry much cheaper in London.<br /><br />I have been getting a suit cleaned for 7GBP and 5 shirts done for 5.95GBP. This is in East London, and paid similar prices when I was in Bayswater. <br /><br />In Sydney I was paying 22AUD for a suit and 15AUD for 5 shirts.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-41016895316500623392010-12-02T22:27:57.055+11:002010-12-02T22:27:57.055+11:00BTW love your blog John! Are you the same John Hem...BTW love your blog John! Are you the same John Hempton who showed me how to mate with K&R v K in Mr Morris' class in prep school?<br /><br />yes...John Hemptonhttps://www.blogger.com/profile/03766274392122783128noreply@blogger.com