I’ve written about this idea before and I believe it fuels much of our economic chaos, lack of opportunity and poverty. I’ve repeatedly had the same “discussion” with my partner.
Me: I think one of the first things that Biden will do is raise the minimum wage.
Him: Oh no. Someone flipping burgers shouldn’t make nearly as much as I do ($9 difference) when I had to go to school and pay licensing fees every year.
Me: How does someone earning more make you earn less?
Him: It doesn’t, but businesses couldn’t afford to pay all their employees $15. Everyone would suffer.
Me: How? People would have enough money to meet basic needs and to buy some of the stuff those businesses produce. They can’t now. In fact, a study followed this same thing in New York. Rather than businesses closing down, they expanded because they had more customers.
Him: They shouldn’t expect a handout. What about all the people who’ve been working there for years? Now they are only making a couple dollars more than new hires.
Me: They still aren’t making less. And, a higher minimum wage would encourage employers to pay skilled workers more in order to keep them.
Him: People should just go back to school to qualify for better jobs. Or work two jobs to meet expenses. Making ends meet is their responsibility. Nobody else should have to pay for it.
Me: How is somebody else paying for it?
Him: I worked my way up to where I am. They can too.
Me: You do remember that you got unemployment while you retrained for free? Someone helped you.
Him: It is just wrong that someone starting out should make nearly as much as I do or people who are already working there.
This is scarcity mentality. Anything that helps someone else must be bad for me.