Saturday, February 23, 2013
Raising Wages Would Revive The Economy
DATA DRIVEN VIEWPOINTS: It seems so obvious that consumption is the fire that powers an economy and money is the fuel. It doesn't matter from where the spending comes in the short run, but it must come from ordinary people in the long run. Wages paid are dollars spent and a dollar spent is a dollar earned in a free economy. Just as you can dampen consumption by raising the cost of borrowing, you can also dampen consumption by suppressing wages, which is exactly what we have been doing for more than 30 years. Corporations have become cash rich but customer poor. They could end this sluggish economy tomorrow by raising wages.