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If someone started at a $5/hr job and was able to average a 10% per year income gain thanks to tireless effort and increasing skills they would eventually reach
by lumost 5y ago
If someone started at a $5/hr job and was able to average a 10% per year income gain thanks to tireless effort and increasing skills they would eventually reach the income of $12/hr after 10 years. During this decade of tireless effort they would have seen no take income increase and their employer would have been giving them raises just to reduce the government benefit they receive.
It's hit or miss as to whether a $15/hr job puts people on a good long-term footing in their career. Putting a person in a $5/hr job that the government tops up will likely just create lifetime wage subsidies as we see today via food stamps/welfare etc.