Stop 2 of 4, The Crazy Train
So last Wednesday we took a ride on the Crazy Train and went down the “what if” path when it comes to getting rid of social services and support programs. Read the article here.
Today we are going to go down the other path.
What would happen if you raised the minimum wage, took the cap off the income limit we collect SSI at and changed the tax code so that millionaires and billionaires paid their fair share, including corporations?
Today we are going to concentrate on the minimum wage…
What is the impact of raising the minimum wage? I think the first statement is fairly easy to defend. If you raise the minimum wage you reduce poverty. If you really want to read the article, here it is. The second important impact of raising the minimum wage is the “Ripple Effect”. This basically shows that raising the minimum wage has a positive impact on jobs near the minimum wage, by creating wage pressure to pay those individuals more. The naysayers would like us to think that jobs would be killed, or that the minimum wage hike would only impact teens. For the first statement, I think if you needed 3 staff to do the job and you had 4, you can’t fire one just to keep your costs at the same point, and if your business is really so marginal that the hike kills your business, I don’t think it was viable to begin with. Sorry, just some tough love there. The other point, that minimum wage only impacts teens is just plain false. More than half of minimum wage earners are 23 or older.
OMG, what if raising the minimum wage increases the cost of my burger? Great, maybe people on the borderline won’t eat there. Make it cheaper to buy and eat grocery store foods and you will help everyone. What would the impact on obesity, heart disease and cancer be if people ate less fast foot? I don’t know for sure, but I’d love to find out.
And the last point I want to make is that by increasing the minimum wage you will stimulate the economy. Giving a rich person a tax break doesn’t mean they go out and buy a new television or laptop. They have disposable income and may just park that money in their bank account, which doesn’t help the economy. Now give someone a few extra bucks who is on the verge. They are going to go out and buy something. New shoes, clothes, furniture. They will take their SO out to dinner or maybe move to a nicer apartment. You give the working class money and we spend it. It is who we are.
Give us the cash, and we’ll plow it right back into the economy.