A raise in minimum wage will break us out of our everlasting stagnation but also serve a re-investment to the proletariat masses of this country.
A $15 minimum wage gave popular rise from Vermont Senator Bernie Sanders in which he had promised during his campaign to raise the minimum wage and other progressives politicians followed as well for $15 minimum wage increase.
Supply side economists will argue that it will not only hurt the economy but would rather hurt the American people as a whole for if the minimum wage was increased, then the businesses would raise their prices on goods thus hurting the consumers rather than benefiting them.
But on the contrary to this economic belief, minimum wage gives the general population a better way of living.
Famous greek philosopher Aristotle advocated for a reduced inequality and to establish a welfare state. During the 50’s and 60’s, the U.S had developed policies to reduce economic inequality, thus gave rise to economic growth partly due to the New Deal by Franklin D. Roosevelt and the beginning of WWII.
At the time, banks were regulated, the labor movement had caused great fear in big businesses, giving an increase to their workers wages and soon a factory worker was able to sustain a better living and have a family.
There had been no financial crisis during the period of regulation. Ford, a vehicle manufacturer at the time, happily increased the wages for its workers so they could afford their cars. The general population of the American people was living a better life.
In present day, we have been experiencing economic instability and no increase to minimum wage giving us less to buy and saving our money more, thus not having money flow into the economy causing great stagnation (the lack of activity or growth in the economy).
The U.S has been powered by the wealthy few and has left the proletariat to live in obscene conditions. Minimum wage has proven to be a useful tool in demand side economics to help sustain a better living, One prominent Wall Street financier Asher Edelmen had advocated for Bernie Sanders approach toward fixing the economy by stating,“the way to stimulate economic growth is to invest in the middle and lower class”.
Therefore by investing in the middle class as well as the lower class, the velocity of money will increase, the velocity of money is the rate at which people spend money.
If we were to invest in the top 1 percent (trickle down economics) and not raise minimum wage the velocity of money would be low thus the spending of the top 1 percent would be about 5 to 10 percent however if we were to invest in the middle and lower class percentage or the general population, the velocity of money would increase and the spending or stimulating of the economy would increase 100 to 110 percent.
A prominent philosopher and intellectual Noam Chomsky said very plainly in the documentary Requiem for the American Dream, if you want to increase investment give money to the poor and the working people…so they spend their incomes, that stimulates production, stimulates investment, stimulates job growth.”
We must demand income equality or we will experience corporate tyranny from the top 1 percent and witness another financial crisis looming over our heads. For if the multinational corporations do not meet the demands of the proletariat masses then they will roar like a bewildered herd.
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