3) There might be an initial shock to raising the minimum wage, but overall the economy stabilizes because if people have bigger paychecks, they are spending more money. That helps the economy. This is a consumer based economy after all. Republicans are apparently too stupid to realize economic growth doesnāt happen if all you do is stimulate supply. There must be demand to meet that supply. Do you notice how all the states who have raised their minimum wages arenāt shitholes like the red states that donāt?
You seem to be proud of your ignorance of our economy. Why is that?
I understand that facts confuse you. None the less I will present them for others to consider.
TESTIMONY
Jobs And Labor
What is Minimum Wage: Its History and Effects on the Economy
June 26, 2013 31 min read
James Sherk
@JamesBSherk
Research Fellow, Labor Economics
Minimum-wage workers under 25 are typically not their familyās sole breadwinners. Rather, they tend to live in middle-class households that do not rely on their earningsātheir average family income exceeds $65,000 a year. Generally, they have not finished their schooling and are working part-time jobs. Over three-fifths of them (62 percent) are currently enrolled in school.
[10] Only 22 percent live at or below the poverty line, while two-thirds live in families with incomes exceeding 150 percent of the poverty line. These workers represent the largest group that would benefit directly from a higher minimum wage, provided they kept or could find a job.
Adults who earn the minimum wage are less likely to live in middle- and upper-income families. Nonetheless, three-fourths of older workers earning the minimum wage live above the poverty line. They have an average family income of $42,500 a year, well above the poverty line of $23,050 per year for a family of four. Most (54 percent) of them choose to work part time, and two-fifths are married.
Many advocates of raising the minimum wage argue it will help low-income single parents surviving on it as their only source of income. Minimum-wage workers, however, do not fit this stereotype. Just 4 percent of minimum-wage workers are single parents working full time, compared to 5.6 percent of all U.S. workers.
[11] Minimum-wage earners are actually less likely to be single parents working full time than the average American worker.
Though some minimum-wage workers do struggle with poverty, they are not representative of the typical worker in minimum-wage jobs. The data simply does not support the stereotype of minimum-wage workers living on the edge of destitution.
Chairman Harkin, Ranking Member Alexander, and Members of the HELP Committee, thank you for inviting me to testify this afternoon. My name is James Sherk. I am a Senior Policy Analyst in Labor Economics at The Heritage Foundation. The views I express in this testimony are my own, and should not...
www.heritage.org