Minimum Wage Hike Could Lift 900,000 Out Of Poverty But Also Cost Jobs: CBO Report

I would argue that when wages increase for those on the lower rung of the economic ladder, you are increasing their purchasing power, not really their saving power, so more dollars are being pumped into our consumer economy. I think that we are forgetting that forecasting economic data isn’t an exact science, economics cannot be a hard science, no matter how hard economists wish that it were so; you have people in the equation and we all know that people are always unreliable, just ask Alan Greenspan, he finally learned his lesson about how marketplaces really work; unpredictably and he actually apologized for it. We do know that the more demand created and the more available purchasing power, the stronger the economy. I just don’t understand why big corporations such as Walmart and McDonald’s don’t understand that at least with the size of their operations, they can very well afford to increase their pay scale and better their profits, it really doesn’t behoove them to make their own products out of reach for their employees. I understand that for very small businesses this could be a temporary set back, but if we look at cities such as San Francisco and Seattle, their unemployment rate is lower than the national unemployment rate despite the fact that their minimum wage is higher. I believe that when the data is understood within its appropriate context, reasonable and nimble policies can be applied to minimize any job loss. If we have the will, we can make it happen.
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