Raising Most People’s Wages by Robert Reich

[Crewleader]

Sunday, September 28, 2014

I was in Seattle, Washington, recently, to congratulate union and community organizers who helped Seattle enact the first $15 per hour minimum wage in the country.

Other cities and states should follow Seattle’s example.

Contrary to the dire predictions of opponents, the hike won’t cost Seattle jobs. In fact, it will put more money into the hands of low-wage workers who are likely to spend almost all of it in the vicinity. That will create jobs.

Conservatives believe the economy functions better if the rich have more money and everyone else has less. But they’re wrong. It’s just the opposite.

The real job creators are not CEOs or corporations or wealthy investors. The job creators are members of America’s vast middle class and the poor, whose purchases cause businesses to expand and invest.

America’s wealthy are richer than they’ve ever been. Big corporations are sitting on more cash they know what to do with. Corporate profits are at record levels. CEO pay continues to soar.

http://robertreich.org/post/98668011635

[Sherman A1]

1. Always enjoy Robert Reich

Got to see him speak a couple of years ago and he was superb!


Thanks for posting!

[Crewleader]

2. He's one my favorites

and what he says is so true....and thank you Sherman A1 for letting me know.

[tecelote]

3. Job Creators

"The job creators are members of America’s vast middle class and the poor, whose purchases cause businesses to expand and invest."

[Thinkingabout]

4. This is so simple, put the money in the majority of homes and it will generate over and over.

Big purchases like homes and cars and to furnish those homes will be appliances and electronics. It is a merry-go-round which enhance our economy.

[cstanleytech]

5. I just have never understood the stupidity of some people who

try to claim that the minimum wage is at fault for the stagnant wages that so many are suffering from currently.
I mean walmart 12 - 15 years ago in my area would hire you for 10 bucks an hour but now they barely go past 8 yet their earns continue to climb.

[KentuckyWoman]

6. K&R

Good read as always. Plain truths in plain language.

THANKS

[Crewleader]

15. KentuckyWoman

It's nice to meet another Robert Reich's fan. My pleasure to post his articles. And thank you for posting!

[tclambert]

7. Rich people aren't job creators. CUSTOMERS are job creators.

You want more jobs? Then you need customers to have more money.

[Demobrat]

8. I've never understood why people don't understand this.

If if own a car dealership with 10 employees, it's doing well, and my taxes go down, I'm going to put the extra money in my pocket. Why would I hire more sales people to handle the same amount of business because I suddenly have more money? It doesn't make sense.

I'm going to hire more sales people if and when more customers walk into the showroom to buy cars. End of story. Demand for goods and services creates jobs. It seems so simple, and yet .....

[Enthusiast]

9. Kicked and recommended!

[MisterP]

10. they admitted trickle-down didn't improve the economy ... in 1981

http://www.theatlantic.com/magazine/archive/1981/12/the-education-of-david-stockman/305760/

[Sherman A1]

11. I remember that article

and the surrounding media, but it changed nothing.

[MisterP]

12. why bother with a coverup if you can just render any leak irrelevant and inconsequential?

[Sherman A1]

13. While I understand

It wasn't a leak as I recall, Stockman came straight out in the piece and said that trickle down was not going to work, but it made no difference.

[tuhaybey]

14. Elect Democrats

Historically, the solution to raising most people's wages has mostly just been electing Democrats. For example:

Since 1930, in roughly the same number of years, Republican Presidents have overseen 47% of increase in personal income where Democratic Presidents have overseen a 266% increase in personal income.

Likewise, at the state level, blue states have a per-person median income that is around $5k higher than red states. Note that is per-person, so for a household of 4, that would be $20k. The gap is even wider if you look at the most prosperous blue states.