Almost seven years ago, the very purpose of this blog involved earning money to purchase cheeseburgers. In addition to being a creative outlet, financial promise lured an unassuming college kid to the social media blockchain and various front-ends. The process isn't flashy. I see headlines everywhere: Snapchat, AOL.com, Twitter, the list continues endlessly. When the topic involves burgers, I stop scrolling and dive in. Are $18 Big Macs the price of falling inequality? The question asks an interesting question, but the debate around the rising cost of my favorite food and its connection to wage increases for low-income workers isn't an argument worth fighting. Rather, there's another headline. It represents a perspective quite opposite expensive McDonald's and makes a much bolder claim. America's economy should be 'thrilled' billionaires like Jeff Bezos and Warren Buffett exist, think-tank director says. So, this small-time author wonders, how can we emulate billionaire founders with $20 Happy Meals?
The Optimistic Viewpoint
Michael Strain, director at the American Enterprise Institute, a center-right think tank, argues billionaires produce many times their net worth in value for the economy through their innovations.
The author holds this to be true, but reminds that the same might be said for an innovation like cryptocurrency, which Bitcoin, for example, does not only benefit its founder, but anyone desirous to establish their own or adopt another system of electronic cash.
An interesting article makes interesting claims, not outlandish ones like the one I discussed yesterday. Strain's views vary greatly from the norm, which asserts that billionaire's represent the wealth and income inequality problem, since their very being is the result of failed policy.
Failed policy puts the problem mildly, and the Vox article reaffirms this.
The Critics of Wealth Disparity
Falling inequality ought not to be blamed for the rising costs of fast food. It's true, workers wage increases result in an increase in consumer costs, for a time. The relationship isn't as detrimental as it seems, nor as bad as thinkers like Michael Strain would like to affirm, by praising billionaires.
Firms invest in productivity-enhancing technology when the minimum wage goes up. The wage increases make the bites to eat take a bigger bite from the wallet, but the lesser known effect covers that higher tab. Essentially, minimum wage hikes spurred capital investment and increased productivity by mechanizing tasks that didn't need a human's tender touch.
Several examples agree with this notion: high wages spur productivity gains. Bloomberg writer Justin Fox put together that as restaurant wages jumped between 2020 and 2021, the sector's output per worker jumped up by 21 percent.
If the praise of billionaires involves compensating their lowest income earners with more, this writer might agree.
Navigating the Middle Ground
Examine the possibility of finding a middle ground that acknowledges the positive contributions of billionaires while addressing the challenges of economic inequality.
The nuance in this debate involves reading into economic data and avoiding exaggeration. Mark Zuckerberg and Elon Musk, might be big contributors to humankind's prosperity, certainly. However, their contributions offer as much any roll of the dice.
Facebook's in the news lately for lawsuits; attorneys are charging Meta for targeting teenagers and young users with potentially addictive and mentally harmful apps. I don't think anyone would thank Zuckerberg for all that.
Fast-food's costing more lately also coincides with the restaurant's location and tactics. Rest stop restaurants notoriously charge more for the same fare as the opportunity to stop for food on the road is far and few between.
In the end...
A conclusion that feels less satisfying than greasy food awaits. While fast food costs you more than your money and billionaires like Bezos cause as many controversies as they make money, no perspective exists in isolation. I personally take higher fast-food costs as motivation to cook at home, but none can deny the inflation of food prices over the past few years. Maybe Facebook and Tesla cars benefit society, but I don't hold my breath for the latest Facebook Messenger update. As usual, a day in the life requires such an open mind and deep pockets.
When will they turn hot takes into renewable energy?