A columnist for the San Francisco Chronicle is balking at the high cost of finding a competent babysitter so she can enjoy a night out with her husband:

It wasn’t so long ago that San Francisco-based babysitters were requesting — and I presume getting — a pretty astounding hourly wage. My “favorite” was a college student who said she expected $25 per hour, three hours minimum, plus cab fare to and from the job. Holding back wild laughter, I said thank you but that is more than what I was willing to pay. Her response was a terse, “well, you get what you pay for, lady.” …

Using the more “reasonable” $20 per hour model, this is what it would cost for a typical pre-recession evening:

- Sitter from 7 to 11 = $80 (scratch that — $90 with tip)

- Before dinner drinks (one each, plus tip) = $25

- Moderately priced meal for two = $100

- Cab ride home = $15

- Total cost: $230

That was a daunting sum for a simple night out. And because of it, we cut back. So…the bars, restaurants, and cab drivers lost too. 

This simple real-world economics lesson shows how a prohibitively high cost of labor can cause a domino effect of cutbacks across the board. (As well as how an entrepreneurial babysitter might be able to corner the San Francisco market by charging a still-respectable $15 per hour!)

[vimeo]http://vimeo.com/4428480[/vimeo]

The poll respondents did a little better, if only because they were offered 5 choices.  21% got the question right. The answers were distributed in a manner that is about equal to what you’d expect from random guessing.  Until Americans improve their financial education, the public won’t be able to comprehend these enormous budget issues that have so much impact on their lives.

Full results here