Minimum wages in America are so low, that an increase in minimum wages goes to spending on consumption goods. This drives economic activity.
Eventually inflation catches up and we are back here again.
To be fair the real issue is the wealth gap.
More money in the hands of poorer people means more money circulation and demand.
Money in rich people’s hands means more investment.
Currently far more is in the hands of rich people so we have incredible amounts of investment dry powder waiting to be deployed, and riskier and less healthy ideas being funded.
Optimum consumption and investment is the ideal way forward, and everyone gets a bigger pie (except the environment)
Eventually inflation catches up and we are back here again.
To be fair the real issue is the wealth gap.
More money in the hands of poorer people means more money circulation and demand.
Money in rich people’s hands means more investment.
Currently far more is in the hands of rich people so we have incredible amounts of investment dry powder waiting to be deployed, and riskier and less healthy ideas being funded.
Optimum consumption and investment is the ideal way forward, and everyone gets a bigger pie (except the environment)