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comment by iammatt
iammatt  ·  1189 days ago  ·  link  ·    ·  parent  ·  post: Salary Subsidy Quiz

I get that it doesn't seem like a comparable scenario since government benefits already exist, the base pay starts low because the goverment is already covering some of the costs. I'll admit I'm not well versed though, and might be mistaken.




wasoxygen  ·  1189 days ago  ·  link  ·  

This discussion got to be pretty extended, but the big idea I got was that when government (or a wealthy uncle) covers some of your living costs, you have less incentive to work for income. Employers have to make you a better offer before you will find it acceptable.

The amount an employer is willing to pay for a worker is entirely based on how much value the worker can provide to the employer. The employer doesn't care how much wealth the worker and others in their household have.