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.

Latest News

Scott Reiterates Opposition to Carbon Tax/TCI

November 15, 2019 by Rob Roper Vermont is one of a dozen states contemplating entering into a regional cap and trade scheme for gasoline and diesel, the Transportation...

Remington Arms Case

November 13, 2019 by John McClaughry Last Tuesday the US Supreme Court cleared the way for a lawsuit against Remington Arms Co. brought by survivors  of victims of...

Scott: Make Paid Family Leave Voluntary, Unless Nobody Wants It

November 12, 2019 By Rob Roper For the past year, Governor Scott has been making the good fight on Paid Family Leave in demanding any such plan be...

False Claims of Falsity About Vermont’s Business Climate

November 8, 2019 by Rob Roper In a recent “fact check” piece by Vermont Digger, the online news site nailed Governor Scott’s comment that Energizer Battery’s decision to...

Sen. Warren and Medicare for All

November 7, 2019 by John McClaughry Last week Sen.  Elizabeth Warren released the details of her Medicare-for-All plan. The Wall Street Journal studied her explanation and concluded that ...