They treat payrolls like bottomless pits that can just spit out more money. Some big companies might absorb the hit and figure it out better. But small operators already scraping by on thin margins don't have that option.
And by the way, for the big companies who can figure it out, I'm not sure the Democrats grasp what that means. It doesn't mean they will figure it out in the workers' favor.
We've been through this before. Forcing wages up looks good on paper, but the costs don't disappear. They show up somewhere else, usually in ways that end up working against the people the policy is supposed to help. The money still has to come from somewhere.
And it will. Some of it will come from more automation. Some will come from hiring fewer people or cutting hours. Some businesses will trim benefits. Almost all of it gets passed along to customers as higher prices.
Higher wages weren't the main driver of the inflation spike under Biden—the worst in 40 years—but they still added to it. They also pushed some companies to start replacing workers. Taco Bell, for example, rolled out ordering kiosks across its restaurants, and self-checkouts became as common as peanut butter and jelly.
The worst part is we're still dealing with the fallout from the inflation that already hit. Stores have closed across the country. Companies have gone bankrupt. Fast food and retail places are struggling just to get people in the door.
A lot of fast-food spots even started pushing loss-leader items on their menus just to get anyone to order. Hiking wages further would only make all of that worse.
Part of the problem is that people see what a CEO gets paid and assume there's a big pot of money just sitting there that can be spread around. I've used this example before, but let's look at Walmart.
The CEO's total compensation last year was about $29.2 million. Walmart has roughly 2.1 million employees. If he took nothing and that entire amount was split equally, each employee would get about $14 a year. That's it. Not a raise. Not a living wage boost. Fourteen bucks.
People treat executive pay like it's the reason everyone else isn't better off. The math doesn't work that way, and the reality is that there's much less money to actually go around than people think.
People do the same thing with taxes. They see the wealth of the top 1% and act like that pool of money is big enough to pay for whatever the government wants. It's not. Even if you could somehow confiscate every penny of the combined wealth of the top 1%, it would only fund the government for a short period of time. And it's not renewable cash. Once it's gone, it's gone.
That's the pattern. People keep treating wages and taxes like they're free money that can be pulled from somewhere else and handed out with no consequences. But the numbers don't support it. Raising the minimum wage again won't fix poverty or affordability any more than it did the last time. It'll just force more of the same adjustments—fewer jobs, more automation, higher prices—while the people who were already struggling get hit again.
The money has to come from somewhere. Pretending otherwise doesn't make it true.
© 2026 Jim Bauer/The Springboard. All rights reserved.
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