IN regards to the whole minimum wage thing, I must beg the question of the economists out there.
What happens when you have a few million families that can't even afford basic subsistence suddenly have the financial means to live modestly comfortable lives? That is, at least enough so that they can realistically not rely on any form of government welfare assistance?
What happens with all that money?
Short answer: it gets spent.
Yes, some of it does get saved, but this is a good thing, too. Banks actually LIKE it when people pump savings accounts full of money. That's money that they're able to pump into the stock market, and all in exchange for a bit of interest paid back to the person that deposited the money.
But by and large? Spent.
Spent on what?
Let's see....
Rent or Home Mortgages. This benefits the housing sector, of course, but also contractors that build houses and the companies that make the materials. And that's a big deal right there.
Food. Children eat a lot. And they need the good stuff. Not instant meals and fast food. This benefits the agricultural sector, as well as food retail chains.
Clothing. That's another big one. Clothes are not like cars or homes. They wear out, are outgrown, and need to be replaced on a regular basis. HOw old is your oldest article of clothing? (Not some family heirloom, please.)
Cars. They have life expectancies. For certain, if they are well cared for they can vastly outlive those expectancies. But the thing is that as a young couple begin having children, their needs in regards to automobiles changes drastically. And being able to afford a loan on a new car lends far more peace of mind than settling for a used car, as there are fewer liabilities in the form of surprise breakdowns. This would be a huge boon to the automotive sector.
Utilities and Telecomunications. These are essentials for certain, but for families with one wage earner bringing home less than $15/hour? You can be certain that they're relying on some kind of assistance, even if it's not to directly help with their utility bills. Instead, they'll get SNAP and/or TANF and/or WIC. Usually all three at once. Additionally, people will be able to upgrade to having better, more efficient appliances, which means fewer and fewer kilowatt-hours used, which reduces strain on the power grid and local generation capacity. And also, not having to deal with the hassles expenses of trying to collect on past-due bills. Yes, those are expenses, and one that takes a noticeable chunk out of their human resources investment.
I can go on and on, but the basic point is that if you really want to make lots of money, you have to be willing to invest that money in the first place. And the payrolls of your employees are the most critically important investment any business owner makes. Because if no one gets paid, then no is a customer and no one is making money.
What happens when you have a few million families that can't even afford basic subsistence suddenly have the financial means to live modestly comfortable lives? That is, at least enough so that they can realistically not rely on any form of government welfare assistance?
What happens with all that money?
Short answer: it gets spent.
Yes, some of it does get saved, but this is a good thing, too. Banks actually LIKE it when people pump savings accounts full of money. That's money that they're able to pump into the stock market, and all in exchange for a bit of interest paid back to the person that deposited the money.
But by and large? Spent.
Spent on what?
Let's see....
Rent or Home Mortgages. This benefits the housing sector, of course, but also contractors that build houses and the companies that make the materials. And that's a big deal right there.
Food. Children eat a lot. And they need the good stuff. Not instant meals and fast food. This benefits the agricultural sector, as well as food retail chains.
Clothing. That's another big one. Clothes are not like cars or homes. They wear out, are outgrown, and need to be replaced on a regular basis. HOw old is your oldest article of clothing? (Not some family heirloom, please.)
Cars. They have life expectancies. For certain, if they are well cared for they can vastly outlive those expectancies. But the thing is that as a young couple begin having children, their needs in regards to automobiles changes drastically. And being able to afford a loan on a new car lends far more peace of mind than settling for a used car, as there are fewer liabilities in the form of surprise breakdowns. This would be a huge boon to the automotive sector.
Utilities and Telecomunications. These are essentials for certain, but for families with one wage earner bringing home less than $15/hour? You can be certain that they're relying on some kind of assistance, even if it's not to directly help with their utility bills. Instead, they'll get SNAP and/or TANF and/or WIC. Usually all three at once. Additionally, people will be able to upgrade to having better, more efficient appliances, which means fewer and fewer kilowatt-hours used, which reduces strain on the power grid and local generation capacity. And also, not having to deal with the hassles expenses of trying to collect on past-due bills. Yes, those are expenses, and one that takes a noticeable chunk out of their human resources investment.
I can go on and on, but the basic point is that if you really want to make lots of money, you have to be willing to invest that money in the first place. And the payrolls of your employees are the most critically important investment any business owner makes. Because if no one gets paid, then no is a customer and no one is making money.