The vast majority of businesses don't operate on margins anywhere close to Wolfgang Puck or your corporate firm. $50k + full benefits + FICA/FUTA/SUT/WorkerComp/Insurances/Etc would make the actual cost of those employees around $100k/yr, which is untenable for small businesses to pay low skilled roles. The local restaurant of the guy you're quoting for example, with a cost of $100K+ for every head, would have to hike prices so high they'd be out of business within a month or two. If you somehow managed to make every business pay everyone "fair" salaries with full benefits, inflation would just equilibrate to a point where someone making $50K + Benefits has the same buying power, QOL, and COL as someone making $30K w/o benefits today. The solution to your hypothetical scenario is for both spouses to work for a few years before having kids, in which time they should presumably be able to accrue enough wealth to either afford the 3-4 years of child care, or afford for one of them to stay home until the child at least reaches school age.