The Economy Isn’t a Pizza, but Small Business Cost is

by John Schnatter
Real Clear Politics

To illustrate the flaws of socialist thinking about wealth distribution, legendary free market economist Milton Friedman was fond of telling people that the economy isn’t a pizza, with only so many slices available to be divided fairly among everyone. In reality, Friedman explained, the economy is technically limitless — one person’s having X amount of money does not mean that there is only Y amount of money left over for everyone else.

However, while a pizza may not be totally applicable as a metaphor for the economy as a whole, it is an excellent metaphor for a small business’s operating budget — which is why the proposal to raise the federal minimum wage from $7.25 to $15 an hour will be harmful to small business entrepreneurs and the people they employ.

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