The true cost of a higher minimum wage

The real problem with the minimum wage debate, however, is that it is a simple argument that masks some uncomfortable realities for all sides of the ideological spectrum. You cannot reduce inequality by the simple working of the unfettered free market, nor can you reduce inequality without money coming from somewhere. You cannot mandate an increase in the minimum wage without a concomitant increase in spending.

Advertisement

Other countries that have less income inequality possess characteristics that Americans of all stripes seem to reject. Germany, Japan and Scandinavian nations all have more government spending; higher costs of goods and services; higher taxes on goods, income, and services; and/or less wealth at the very top.

Americans, however, can agree on none of these trade-offs. Only a small percentage of people are willing to pay more for their goods and services — like organic food or artisanal goods. Americans always resist higher taxes, even when they only impact the rich, and the idea that incomes might be capped raises howls of protest.

Join the conversation as a VIP Member

Trending on HotAir Videos

Advertisement
Advertisement
Advertisement