In our "Ways to fix the economy that our politicians are ignoring" news - two new reports suggest that raising the minimum wage could do wonders for the American economy. The reports - one from the University of Massachusetts - the other from the University of Cal Berkeley - shoot down the myth that a hike in the minimum wage results in fewer jobs - calling this "disemployment" theory baseless.
The reports do say though that a higher minimum wage translates into more money into the pocket of workers, and thus more spending, which drives our economy. This is basic economics - economies are demand driven and if you give workers more money - they spend it and everyone gets richer. Yet - Republicans don't seem to get it. They think if you just give billions away to already rich people - that money will trickle down - which is why they hate the minimum wage, because it takes money away from corporate CEOs and gives it to workers. But the truth is that money at the top never trickles down - it never has - and it never will.
So the question - is it that Republicans just don't understand basic economics - or are they REALLY are trying to crash our economy with bad policies, so they can blame it on Obama and win in 2012? Unfortunately - I'm guessing the latter.
-Thom
(What's your guess? Tell us here.)
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