Letter: Wage increase is a win-win
Despite the claims that increasing the minimum wage would hurt the economy, the exact opposite is true for everyone, including businesses. Doing even the most basic math, there are 28 million people who would get a $3-per-hour raise. That means $84 million that will be returned to the economy almost immediately since workers at that level have immediate needs to spend it on.
Going to the next level, assuming a 30-hour work- week, $2.52 billion would be generated per week, and that expands to $131.04 billion per year, all of which would be used to buy necessities, pay bills, even pay some taxes. If you add in the 1.6 buying power factor for each dollar spent in that income level, the amount grows to
$209.66 billion per year – quite a stimulus at no government expense.
Who besides the recipients would benefit? Businesses, of course, since consumer buying power stimulates demand, and businesses have the power to raise prices a small percentage to offset increased wages to maintain or even increase their profit margins. Government (thereby the people) benefits through increased taxes and reduction in poverty outlays such as food stamps.
Seems Congress has a struggle with basic math and reality. Or is it just to say “no” to anything proposed by the Obama administration to take even a modest move toward closing the income gap between the very rich and the struggling working class?