Proponents of increasing the minimum wage “have to be a bit careful” in considering the consequences of the policy, says Microsoft founder Bill Gates. The billionaire warned that a raise could ultimately hurt low-wage workers since it could result in employers opting to use more cost-efficient machines or to cut employee hours.
“Within certain limits, it doesn’t cause job destruction, but if you really start pushing it, then you’re just making a huge tradeoff,” Gates said on Morning Joe. “You have to say which are the households that end up benefiting: 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,” he added.