Styrofoam Teaches Economics

This week, I went with my family to visit one of my favorite inexpensive places for lunch – Bill Miller’s. I go back a long way with Bill, 1985 to be exact, when I was first introduced to this Texas BBQ almost fast food chain. Many life issues and theological questions have been resolved over a regular plate and half-and-half iced tea…

Anyway, this time when we received our lunch plates I immediately noticed something ominously different about our food and its method of delivery. Instead of the food being served securely on the expected cafeteria style hard plastic plates, the meat and sides were precariously supported by a flimsy styrofoam “plate.” Our Bill Miller experience had been degraded and my thoughts searched for a reason why.

The answer, I suspect, is in the economics of plate management. Huh? I mean that even though Bill Miller’s has a stack of already paid-for cafeteria style plates sitting in the closet, they have chosen to serve their food on a substandard piece of foam because it is…cheaper for them. And it is cheaper for them because it has become more expensive for them to hire a dishwasher than to purchase and throw out small mountains of styrofoam plates which accumulate in the landfill.

The root issue here is that having a legally mandated minimum wage forces companies like Bill Miller’s to actually fire people and replace them with less expensive alternatives like styrofoam plates. Instead of having the intended effect of improving the life of the dishwasher, the law has added the dishwasher to the unemployment line! In fact, any legislation that raises the cost of hiring people will result in higher unemployment. Just think if we decided to really “help” everyone by raising the minimum wage to $20/hour. How many more ways would businesses discover to get the job done without the expense of a $20/hour employee – plenty. The moral of the story is that letting the market set the price for employee compensation and product price results in the highest employment and highest standard of living for a society. As Thomas Paine said, “That government which governs best governs least.”

As for Bill Miller’s – I guess I’ll adapt. Just remember to lift the plate with both hands and not push too hard when cutting your brisket lest you get Bill’s sauce oozing onto the table and into your lap. Or, just order the #6 which is the salad, served in its own hard plastic resealable container – at least for now.