hello on Nostr: DOMINO EFFECT: Imagine the government decides to raise the minimum wage. If you are, ...

DOMINO EFFECT: Imagine the government decides to raise the minimum wage. If you are, say, the owner of a café. This sounds like good news for your employees. But your costs go up and profits stay the same.

Because of this, you have to make difficult decisions. You might need to lay off some employees. It's not what you want, but there isn't enough money to pay everyone.

You try to reduce expenses. Maybe you use cheaper ingredients or reduce services like air conditioning. This changes what it feels like to be in your café. Fewer people might want to come.

Another option is to raise prices. But this could drive away your regular customers. If only the wealthiest can afford it, you lose the essence of your café. This could lead to losing sales and, eventually, having to close.

This problem is an example of the Domino Effect (aka Knock-on Effect). A government action leads to a series of unwanted changes. It's important to think about all the consequences before making decisions.