Raising the Minimum Wage is a Boon for the Economy

Steve Kinsman By Steve Kinsman, 3rd Jul 2014 | Follow this author | RSS Feed | Short URL http://nut.bz/1_-duolw/
Posted in Wikinut>Money>Economics

Despite what the merchants of selfishness and greed want to make us believe, raising the minimum wage is the very best way to jump start the economy.

Selling a myth

Republicans in Congress, always working tirelessly on behalf of the one percent and no one else, are fond of telling us that raising the minimum wage would be a "job killer" and force businesses to lay people off. This is pure poppycock. In fact, the exact opposite is true.

The facts

In January, 2014, the minimum wage went up in thirteen states - Arizona, Connecticut, Colorado, Florida, Missouri, Montana, New Jersey, New York, Ohio, Oregon, Rhode Island, Vermont and Washington - when automatic increases due to inflation kicked in or when new legislation mandated an increase.

According to a report issued by the Center for Economic and Policy Research, the average gain in employment for states that raised the minimum wage during the first five months of this year was plus .99 percent, while the average gain in states where the wage remained the same was plus .68 percent. In other words, employment gains in the states that raised wages were a full third higher than in the states that did not increase the minimum wage.

The fact is that the economies of all but one of those thirteen states - the exception is New Jersey - outperformed the economies of the states that kept the minimum wage the same. So the next time someone repeats the Republican and Fox News mantra that raising the minimum wage is a job killer, they need to be politely told they don't know what they're talking about.

Tags

Economic Theory, Economics, Employment, Minimum Wage, One Percent, Opinion, Steve Kinsman, Wages

Meet the author

author avatar Steve Kinsman
I live in California with my wife Carol, where I have been practicing professional astrology for 35 years. I write articles on astrology, but I enjoy writing on a variety of other subjects as well..

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Comments

author avatar Phyl Campbell
4th Jul 2014 (#)

Love it when facts trump politics. Thanks for a great share!

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author avatar Sivaramakrishnan A
4th Jul 2014 (#)

Thanks Steve for the highlight. A decent wage creates wonders at the workplace as workers respond with positive attitude. Sadly, in most countries nine work to enrich the one leading to rising income disparity and social unrest - siva

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author avatar Steve Kinsman
4th Jul 2014 (#)

Yes, Siva. Exactly. When you pay workers more money, they will spend it, thus stimulating the economy. Raising the minimum wage creates jobs.

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author avatar Ptrikha
4th Jul 2014 (#)

Also, it lessens the wide income disparity, as well as reduces the social unrest.

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author avatar Steve Kinsman
4th Jul 2014 (#)

Good points. Thank you Ptrikha.

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author avatar spirited
4th Jul 2014 (#)

Good points about raising the minimum age Steve.

I wonder though if they should create a maximum wage too.

Those corporate cowboys who rake in billions for sitting at the top of a business, largely only as figureheads, are wrecking the economy to my mind, stretching the gap between the poor and the rich.

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author avatar Steve Kinsman
4th Jul 2014 (#)

Exactly, spirited. You've hit the nail on the head.

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author avatar Mark Gordon Brown
4th Jul 2014 (#)

People need to want others to succeed as it will make everyone stronger, but too many focus only on their own success and what they want for themselves, so the guys at the top focus only on their bottom line and do not see that helping those at the bottom could make things better for everyone.

What do you think of a maximum wage?

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author avatar Steve Kinsman
4th Jul 2014 (#)

I thinks a maximum wage is a hell of a good idea.

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author avatar Stella Mitchell
4th Jul 2014 (#)

People have a tendency to work harder and more loyally when given encouragement and financial incentive to do so Steve
It makes for happier work places and happier workers when they are shown appreciation for their labour .
Bless you
Stella ><

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author avatar Steve Kinsman
4th Jul 2014 (#)

Exactly. Thank you Stella.

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author avatar Fern Mc Costigan
4th Jul 2014 (#)

Excellent idea, still some corporations dont agree fully

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author avatar Steve Kinsman
4th Jul 2014 (#)

That's because they're run by greedy bastards.

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author avatar Helen Thomas
5th Jul 2014 (#)

Thanks for the share ~ Steve. The facts really do speak for themselves. Unfortunately ~ the very greedy twist the facts in an effort to make them reflect the opposite.

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author avatar Steve Kinsman
5th Jul 2014 (#)

Yes, exactly. Thanks for your comment Helen. I appreciate it.

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author avatar Retired
6th Jul 2014 (#)

Excellent points and a very important subject, too. Recently, my mom wrote a letter to Walmart pointing out how their employees come from the same class level as their customers--and making them happy with a fair wage, etc. would be a beneficial promotional move for their company - it would be a good business investment...so they could at least make the right decision even if from the wrong motivation. :)

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author avatar Steve Kinsman
6th Jul 2014 (#)

Good for your mom, rama devi. Thanks for commenting.

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author avatar Randhir Bechoo
6th Jul 2014 (#)

Well written.Better wages means more buying power in the economy.

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author avatar Steve Kinsman
6th Jul 2014 (#)

Exactly, Randhir. Thank you.

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