It is both, to some degree. If our society was willing, for example, to pay $14 for a Big Mac, it's possible a McDonald's cashier working in San Francisco could

It is both, to some degree. If our society was willing, for example, to pay $14 for a Big Mac, it's possible a McDonald's cashier working in San Francisco could be paid a livable wage. When a Big Mac sets you back only $4 in a nearby city, however, the idea of charging $14 becomes an intractable problem.