One thing it seems that many folks miss is that raising the Minimum Wage does help the Middle Class.
It's a well known fact that the American Middle Class has been spinning it's wheels for over three decades because of flat wage growth.
For decades the American Middle Class was the envy of the world but now it isn't. Canada recently passed the US as having the wealthiest Middle Class. Other wealthy nation's Middle Classes have seen a much more significant growth in their income than the US Middle Class and will join Canada as far as having a stronger Middle Class than the US.
Now, back to the Middle Class benefiting from an increase in the Minimum Wage. Below is an article that echo's what a recent paper written by Joseph Sabia which was published by the libertarian Cato Institute.
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Minimum Wage Hike Would Benefit 3X More Middle-Class Workers Than Poor
Three times as many workers from middle-class families would benefit from President Obama's
proposal to raise the federal minimum wage from $7.25 to $10.10 an hour as those living in households below the federal poverty line, according to a new study.
A family of four with an annual income of $23,550 or below is considered poor under the 2013
Federal Poverty Guidelines. But raising the minimum wage would help only 13 percent of workers in that category, according to a study by
Joseph Sabia, associate professor of economics at San Diego State University and an expert on the minimum wage.
However, the 39 percent hike in the minimum wage proposed by President Obama would benefit two-thirds of workers in households with annual incomes over twice the poverty line ($47,100 for a family of four) and 40 percent of workers with household incomes three times the federal poverty level ($70,650 for a family of four) - or three times the percentage of poor workers who would benefit.
Calling the minimum wage "an antiquated anti-poverty tool," Prof. Sabia says his own research and a comprehensive survey of past minimum wage studies shows that "there is no evidence that minimum wage increases reduce poverty."
"Even among a population that has been targeted by policymakers for minimum wage protection - less-educated single mothers - my research has found no evidence that minimum wage increases reduce poverty," Professor Sabia writes in a paper published by the
Cato Institute. “While alleviating poverty is a widely shared goal, raising the minimum wage is a very inefficient means of achieving this objective.” (See
Minimum wage CATO (1).pdf)
Minimum Wage Hike Would Benefit 3X More Middle-Class Workers Than Poor CNS News
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