From the Huffington Post article “Raising the Minimum Wage Is Good for Business (But the Corporate Lobby Doesn’t Think So)” by Peter Dreier and Donald Cohen:
“In fact, raising the minimum wage is good for business and the overall economy. Why? Because when poor workers have more money to spend, they spend it, almost entirely in the local community, on basic necessities like housing, food, clothing and transportation. When consumer demand grows, businesses thrive, earn more profits, and create more jobs. Economists call this the “multiplier effect.” According to Doug Hall of the Economic Policy Institute, a minimum wage hike to $9 per hour would pump $21 billion into the economy.
“Increasing the minimum wage to $9 an hour and tying it to the cost of living will not, on its own, lift the country out of its economic doldrums. But it will definitely lift millions of Americans out of poverty, stimulate the economy, and create new jobs. It is the right thing to do both morally and economically.”
MP: If a minimum wage hike to $9 per hour would pump a $21 billion stimulus into the US economy, create new jobs, bring about economic prosperity, and lift millions of Americans out of poverty, what are we waiting for? Who knew it was so easy?