$20,800 or BUST!
The title of this post refers to the amount of income a person will gross in a year if they work a 40 hour week and are paid $10 per hour. The “or bust” refers to where our federal minimum wage should be headed, but isn’t. As it stands the federal minimum is $5.15. At that present rate a full time worker grosses $10,712 which is far too low by any reasonable standard of living. The minimum wage should be a LIVING WAGE, not a POVERTY WAGE!
Resolved: There is no good reason to keep the min. wage low and plenty of good reasons to raise it to a living wage.
The best story I have about raising the minimum wage in my neck of the woods happened recently when a tax cutting repub, right-wingnut county executive raised the sales tax to the highest level in the state of New York! At it’s peek, it was set at 9.75%. A couple of months later, it was reported that that this repub tax increase has brought in far more money then the mainstream econowackos estimated it would! This was caused by a large INCREASE in sales at retail stores all over the county. WTF!? This flies in the face of the voodoo economics the phd toting mainstream econowackos have been spewing for years! In econowackoland any increase in the sales tax will result in a decrease in sales for the “sales tax sensitive” retail sector. Further, there was an increase in sales tax receipts in EVERY COUNTY of the state of New York in that same period. The states income tax reporting was experiencing an upswing in amount too! Something magical was happening!
This magic was caused by something the state legislature had done. They had overridden the then repub governor’s VETO of a bill that raised the state minimum wage to above the federal minimum wage level. If this has ever happened before in my lifetime, I don’t remember it! I do however hope in keeps happening. It has been the best thing to happen on the economic front that I have ever seen.
Why did it work out the way it has? Simple. When they gave a raise to the roughly %40 of workers in this county who are paid the lowest. They went out and spent their increase in income on things subject to the sales tax.
Let me state it in an “equation:”
INCREASE in min.wage = INCREASE in retail sales + INCREASE in state income tax revenues + INCREASE in county sales tax recipts
This now makes it possible for both the state and county TO CUT TAX RATES without a loss of revenue! This is the power of what I call DEMAND SIDE ECONOMICS! The supply side has failed us, time to run on the demand side!
If that ain’t enough to convince you, look at the people it effects. The ones who check out your purchases at any store you shop. Is $20,800 a year gross, too high a level of pay for them? I think not!
The telepathic crickets are still sleeping off the party they threw last night to celebrate the “glorious workers revolution” they staged yesterday. One of them woke with a start a few minutes ago and chirped “fair wealth distribution in a demand side economy!” What a coincidence, that’s exactly what I was thinking, and that’s the issue I will cover in my next ClapSolutionary post…
The scientifically impossible I do right away
The spiritually miraculous takes a bit longer