Wednesday, July 21, 2010
"A National ‘Living Wage’ Law Would Save the Economy"
The American economy is dying because people don’t have money to spend. Obviously, you can’t have a strong economy with a real unemployment rate of about 20%. But it also goes deeper than this.
You can’t have a strong economy with nearly all of the wealth accumulating in the hands of the richest 1% of the population.
The wages for the average worker over the last few decades have not only stagnated, but they have actually gone down during this decade.
When America had a well paid labor force with good labor policies America thrived.
Because people will spend when they have the money to spend.
As I previously pointed out Santa Fe, New Mexico enacted a living wage law and it did much to benefit their economy. The business interests of that city cried that the living wage would lead to more unemployment and hurt small business. But what actually occurred was a thriving economy in Santa Fe.
We need to discard the notion of a minimum wage, and start thinking in terms of a living wage. Every job should provide a person with a living wage.
By enacting living wage laws, this would put the money back into the economy where it would benefit everyone. The people at the top would still be super rich but they would not have as much money to gamble on hedge funds. The rest of Americans would have more money to spend and that would create jobs.
Instead of the Fed printing more money and putting it into the hands of the top 1% to offset the deflationary spiral of a depression that we have been facing. A living wage would put an end to deflation by heating up the economy so all could benefit.