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So I was thinking the other day (dangerous I know) and wouldnt any attempt to give the middle class/lower class a stimulus or wage increase just make the 1% RICHER....bear with me now. The 1% own the businesses we buy from....when the typical American gets money, they spend it....when we buy something, it makes the owners wealthier....e.g...if we make more money, the 1% will just get richer?
well, you're assuming that they can't get more out of you by increasing the product prices which they do. They can also make more investing the money than paying someone who may or may not shop at the owners stores.
The problem is when economic prosperity is only experienced by the few.. ie the 1% wealthiest...
What I believe we need is to maintain and increase opportunities for class mobility and ways for citizens to improve their situation. One place to invest is education.... the proper education... make education more accessible. Keep in mind that most of the working people (poor, middle, and affluent) generate most of their wealth through labor while the wealthy/rich/top-1% generate wealth through investments.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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No, that's not the case. The 1% are typically CEOs who are paid a fixed amount by contract, and may or may not get a raise based on the performance of the company. The stockholders benefit, and most are people like us in the 99% who have small investments in stocks, or retirement investments that include those companies from which we buy. Most others in the 1% are university football coaches, doctors, professional athletes, top news anchors, and actors/actresses, none of whom benefit from increased purchases by the 99%.
So I was thinking the other day (dangerous I know) and wouldnt any attempt to give the middle class/lower class a stimulus or wage increase just make the 1% RICHER....bear with me now. The 1% own the businesses we buy from....when the typical American gets money, they spend it....when we buy something, it makes the owners wealthier....e.g...if we make more money, the 1% will just get richer?
Yes it would make them richer. But that is in the long run. In the short run the growth in the economy is currently happening in the top end. Upping the minimum wage would tend to disrupt that a bit. But they would have a smaller % of the pie but the pie would grow faster than their % got smaller.
The problem is when economic prosperity is only experienced by the few.. ie the 1% wealthiest...
What I believe we need is to maintain and increase opportunities for class mobility and ways for citizens to improve their situation. One place to invest is education.... the proper education... make education more accessible. Keep in mind that most of the working people (poor, middle, and affluent) generate most of their wealth through labor while the wealthy/rich/top-1% generate wealth through investments.
Well I only point that out because these arguments about stimulus and increasing minimum wage are always presented during conversations on income inequality and wage gaps. However it seems like these ideas wouldnt help with income inequality and wage gaps because we would just spend the money and make the 1%...richer...
Well I only point that out because these arguments about stimulus and increasing minimum wage are always presented during conversations on income inequality and wage gaps. However it seems like these ideas wouldnt help with income inequality and wage gaps because we would just spend the money and make the 1%...richer...
The discussions around bringing up the minimum wage to a living wage has a different intent. Its not about increasing spending, improving lifestyle or closing the wage gap. It is about minimizing the welfare collected among the full-employed.
The premise of your OP:
Quote:
So I was thinking the other day (dangerous I know) and wouldnt any attempt to give the middle class/lower class a stimulus or wage increase just make the 1% RICHER....bear with me now. The 1% own the businesses we buy from....when the typical American gets money, they spend it....when we buy something, it makes the owners wealthier....e.g...if we make more money, the 1% will just get richer?
has little to do with minimum wages. Its about class stimulus around middle and lower class.
So I was thinking the other day (dangerous I know) and wouldnt any attempt to give the middle class/lower class a stimulus or wage increase just make the 1% RICHER....bear with me now. The 1% own the businesses we buy from....when the typical American gets money, they spend it....when we buy something, it makes the owners wealthier....e.g...if we make more money, the 1% will just get richer?
If inequality is to be decreased slightly, two things have to happen:
1) The lower classes need higher wages
2) The 1% need to have their income and wealth confiscated at a higher rate (more progressive taxes)
If inequality is to be decreased slightly, two things have to happen:
1) The lower classes need higher wages
2) The 1% need to have their income and wealth confiscated at a higher rate (more progressive taxes)
I disagree with the second part. I think the middle class (the bulk of those in question) need to be "brainwashed" into investing their extra cash instead of being such consumers. This will make the middle class the owners of the corporations instead of the 1%. Then the corporations will stop abusing the middle class because....the middle class owns the corporations...
If inequality is to be decreased slightly, two things have to happen:
1) The lower classes need higher wages
2) The 1% need to have their income and wealth confiscated at a higher rate (more progressive taxes)
1 and 2 can be answered by just increasing the minimum wage at a higher rate than inflation.
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