If it takes 15.00 an hour to have a "living" wage, well I really dont have an issue with that except that really all your doing is raising the cost to build a widget, or grow a widget to a point in which the 8.00 an hour becomes 15.00 an hour it seems to me
What is a living wage?
Here is the whole issue with wages. A very large portion of our economy comes from consumer spending. The lowest income earners spend the greatest percentage of their incomes on products and services. The ability for consumers to spend, meaning they have money to spend, is what drives our economy. As spending power decreases among the middle class and underclass, so goes the economy. Rich people do buy goods and services, but they don't buy nearly as much as the rest of us do. If the top ten percent are earning approximately 45% of income, and the other 90% is earning the other 55%, do you really think that the top 10% is putting that money all back into the economy?
Increasing the wages of the lowest income earners will just put all that money right back into the economy. Everyone benefits. Of course it isn't quite so simple as just giving everyone a raise. However, when we look at the amount that the top income earners have increased their incomes by, we must ask ourselves what are they using that money for? Are they putting it back into the economy? With American businesses sitting on over $2 trillion in cash, the obvious answer is no. If that money was in the pockets of American workers, it would all be put right back into the economy creating substantial growth.
I am not saying that this is the solution, but just explaining that is how things actually work. Making it so is another story. The other problem that we have is that the baby boomers have reduced their spending considerably just due to the fact that they have everything they need. So we now have reduced spending on two fronts, the wealthy baby boomers and the rest of the populace that is just struggling to get by. But on the other end, we have the wealthy who continue to gain wealth while the rest of the country takes it up the ass.
Then with all of this happening, we have people like Herman Cain telling us we need to drastically reduce taxes on the wealthy, those who are already increasing their wealth, while increasing taxes on everyone else, those who are already losing any wealthy they may have. It really makes sane people scratch their heads.