Political issues - do low income employees get more than they give or give more than they get?

Mark McIlroy

08.04.2025




1. There is a political view in some circles that low-income employees are receiving more from society than they are giving. This article challenges that and asserts that is it the other way around.


2. At the time of writing in Australia, the minimum wage is about $25 a hour. Lawyers charge $400 an hour, while IT consultants get $1,000 a day.


3. So let's look at what the minimum-wage employee gets.


4. They work for 8 hours a day. In return they get their $25 a hour, less taxes. Not much in comparison to the lawyer or the IT consultant.


5. But they get a house to live in. Not for free they don't, they have to pay rent, which is up to half their income in some cases.


6. But they get to travel down the roads. Not for free they don't. They either pay petrol taxes, or fares for public transport.


7. But they get food. Not for free they don't, they have to pay for it from whatever is left from their salaries.


8. But they get free healthcare. In Australia, this is probably the only item on the list that is potentially true. Under the Medicare system, people can get essential healthcare for free. However even minimum-wage workers pay tax, which goes towards funding the healthcare system.


9. Finally, 'But they get the benefit of highly-skilled lawyers, politicians, and other foundation members of society'. 

Not for free they don't. If a minimum-wage person needs to see a lawyer, they have to pay the same $400 per hour as everyone else, which they need to pay for from their $25 a hour salary.

If a minimum-wage employee needs to get their car serviced by a mechanic, it costs the same $500 that everyone else is paying. 
Politicians salaries are paid from taxes, which apply to people even earning the minimum wage. And so on.

Surgery - I've covered healthcare in point 8.


2.1 'But the minimum-pay jobs are easy, anyone could do them'. No, they aren't. A surgeon, lawyer or accountant would not make it as a dishwasher in a commercial kitchen. Why? Because they would be too slow. To survive in a job like that you have to be strong,
accurate, and very very fast.


2.2 'But the minimum-pay jobs do not add value'. Don't think that cleaning and rubbish collection are essential services? They don't require years of training. However it still requires someone that can do the job.

How long would society survive without cleaners and rubbish collection?

Not only would the streets, shopping centres and other commercial places be filthy within weeks if not days, disease would run rampant.