Uncategorized

Raising the minimum wage: Good for people, good for the economy

Minimum wage 2(Cross-posted from Off the Charts – the blog of the Center on Budget and Policy Priorities.)

Raising the minimum wage would help the economy, CBPP Senior Fellow Jared Bernstein writes in the latest edition of the CQ Researcher.

Two well-established facts help back up this argument, Bernstein says:

The first fact is that the American economy is made up of 70 percent consumer spending.

Economists widely agree that an extra dollar earned by a wealthy person is less likely to be spent than an extra dollar earned by a low-income person….

The second fact is that moderate increases in the minimum wage boost the earnings of most low-wage workers without leading to large employment losses. The increase favored by the president and congressional Democrats, which would take the federal minimum wage from $7.25 up to $10.10 in three annual increments, would place the real value of the wage floor back where it was in the late 1960s and would directly affect about 13 percent of the workforce….

In an economy driven in no small measure by consumer spending, moderately boosting the pay of low-wage workers with relatively high propensities to spend their new earnings should produce slightly faster macroeconomic growth.

Raising the minimum wage “is unlikely to be a big deal in terms of the larger growth picture,” Bernstein says, but “it really makes a difference in helping working families toiling at the low end of the service economy get a bit closer to making ends meet.”

2 Comments


  1. Silence DoGood

    January 25, 2014 at 1:22 pm

    No matter what someone’s income is, unless they learn how to save they will end up right back where they started.

    http://www.youtube.com/watch?v=nVat9VBsSCg

  2. Alan

    January 25, 2014 at 2:12 pm

    Silence,

    Thanks for the informative link, I put this in the “useless info” category…

Check Also

BREAKING: U.S. Supreme Court upholds decision striking down NC congressional map

Here’s the interesting headline from Supreme Court watcher ...

Top Stories from NCPW

  • News
  • Commentary

Wednesday was the 63rd anniversary of the Brown v. Board of Education ruling, the milestone U.S. Sup [...]

A Q&A with key players ahead of today’s House vote House lawmakers are expected to vote today on [...]

The North Carolina Senate is expected to give final approval to its proposed 2017-19 state budget so [...]

The post Crumbs appeared first on NC Policy Watch. [...]

In the past few months, North Carolinians have seen our General Assembly make national news several [...]

The last week has featured some of the most offensive, belligerent, and vindictive behavior by elect [...]

Hurricane Matthew non-response sets a new low when it comes to basics of governing With the increasi [...]

Featured | Special Projects

Trump + North Carolina
In dozens of vitally important areas, policy decisions of the Trump administration are dramatically affecting and altering the lives of North Carolinians. This growing collection of stories summarizes and critiques many of the most important decisions and their impacts.
Read more


HB2 - The continuing controversy
Policy Watch’s comprehensive coverage of North Carolina’s sweeping anti-LGBT law.
Read more