1-23-14 – Bill Gates Comes Out Against Increasing the Minimum Wage

by Shayne Spence

Billionaire Microsoft investor and advocate of liberal policies Bill Gates was recently on MSNBC’s Morning Joe to discuss what he sees as three myths that block progress for the poor.  The Bill and Melinda Gates Foundation provides aid worldwide to low-income countries, so Gates has plenty of experience with what lifts people out of poverty.

After talking about issues ranging from foreign aid to education, co-host Mika Brzezinski asked Gates, “What do you think about the minimum wage? Should it be raised? And should we want to see models more like Costco – where companies pay their employees a lot more than the minimum wage?”

Gates’ response was not what she expected.  He said, “Well, jobs are a great thing.  So you have to be a bit careful: If you raise the minimum wage, you’re encouraging labor substitution, and you’re going to go buy machines and automate things – or cause jobs to appear outside of that jurisdiction.  And so within certain limits, you know, it does cause job destruction.”

Gates also pointed out that lawmakers should look at who minimum wage increases really benefit – “Is it much more the teenager in a wealthy household, or is it that household in poverty?  A lot of the problem there is that those people don’t have many hours, it’s not the actual wage level.”

Brzezinski responded, “Well, like fast food workers, I mean, a lot of those people are households in poverty.” To which Gates quickly replied,88% in non-poverty households, so there is about 11% of those are from the poverty households.”

I am certainly glad to see that Mr. Gates agrees with me on this issue.

Shayne Spence is the Outreach and Development Coordinator for the Ethan Allen Institute.

{ 0 comments… add one now }

Leave a Comment

Previous post:

Next post:

About Us

The Ethan Allen Institute is Vermont’s free-market public policy research and education organization. Founded in 1993, we are one of fifty-plus similar but independent state-level, public policy organizations around the country which exchange ideas and information through the State Policy Network.
Read more...

Latest News

VT Left Wing Media Bias Unmasks Itself

July 24, 2020 By Rob Roper Dave Gram was a long time reporter for the Associated Press, is currently the host of what’s billed on WDEV as a...

Using Guns for Self Defense – 3 Recent Examples

July 24, 2020 By John McClaughry  The Heritage Foundation’s Daily Signal last week published eleven news stories about citizens using a firearm to stop a crime. Here are...

FERC ruling on solar subsidies could help Vermont ratepayers

July 21, 2020 By John McClaughry Last Thursday, the Federal Energy Regulatory Commission finalized its updates to the Public Utility Regulatory Policies Act (PURPA), in what the majority...

The Moderate Left’s Stand for Free Speech

July 17, 2020 By David Flemming Harper’s Magazine, a long-running monthly magazine of literature, politics, culture, finance, and the arts, is hardly what you would call a ‘politically...

Trump’s Regulatory Bill of Rights

July 16, 2020 by John McClaughry “President Trump [last May] issued an executive order entitled  ‘Regulatory Relief to Support Economic Recovery.’ The executive order includes a regulatory bill...

Video