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Thread: Boosting the economy from the bottom up

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    RNG
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    Boosting the economy from the bottom up

    Let me preface the main thrust of this post by saying that up until about 12 years ago I was a trickle down believer. Then I retired and got the time to study it and I am now the opposite. But here is an issue that I am not sold on, either way.

    An op-ed appearing on the CBC site today reports on a study done by the National Employment Law Project which says that in fact increasing minimum wage has a "trickle out" effect and in fact increases employment. (My phrase.) Both the op-ed and the study are linked below.

    Their claim is that from studying US data from the 1930s till now, they have concluded that not only did increasing the minimum wage not hurt employment, about a year after each federal minimum wage the employment figures increased.

    I had a chat with Mr. Google and could learn very little about the NELP. One hit was a "help wanted ad" for a position as Senior Policy Analyst under a Harvard Law School letterhead.

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    'Boosting the economy from the bottom up': Why minimum wage hikes are a good thing - Business - CBC News

    http://www.nelp.org/content/uploads/...orrelation.pdf

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    Galactic Ruler Spookycolt's Avatar
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    Doesn't raising the minimum wage raise prices of goods also?

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    Quote Originally Posted by RNG View Post
    Let me preface the main thrust of this post by saying that up until about 12 years ago I was a trickle down believer. Then I retired and got the time to study it and I am now the opposite. But here is an issue that I am not sold on, either way.

    An op-ed appearing on the CBC site today reports on a study done by the National Employment Law Project which says that in fact increasing minimum wage has a "trickle out" effect and in fact increases employment. (My phrase.) Both the op-ed and the study are linked below.

    Their claim is that from studying US data from the 1930s till now, they have concluded that not only did increasing the minimum wage not hurt employment, about a year after each federal minimum wage the employment figures increased.

    I had a chat with Mr. Google and could learn very little about the NELP. One hit was a "help wanted ad" for a position as Senior Policy Analyst under a Harvard Law School letterhead.

    Comments?

    'Boosting the economy from the bottom up': Why minimum wage hikes are a good thing - Business - CBC News

    http://www.nelp.org/content/uploads/...orrelation.pdf
    The GWB tax cuts did essentially the same thing, the working class got to keep more of its hard earned cash and had more money to spend. Partisans of course labeled them tax cuts for the rich, but they weren't really trickle down, mostly bottom up.

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    Thought Provocateur NightSwimmer's Avatar
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    Quote Originally Posted by Spookycolt View Post
    Doesn't raising the minimum wage raise prices of goods also?
    It might, if all goods were being produced by workers earning minimum wage.
    Thanks from RNG

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    Thought Provocateur NightSwimmer's Avatar
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    Quote Originally Posted by Libertine View Post
    The GWB tax cuts did essentially the same thing, the working class got to keep more of its hard earned cash and had more money to spend. Partisans of course labeled them tax cuts for the rich, but they weren't really trickle down, mostly bottom up.
    You're right. Working class taxpayers saved about $300.00 per year due to the Bush tax cuts. That amounted to about a $0.14 per hour pay raise.
    Thanks from BigLeRoy

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    Veteran Member TNVolunteer73's Avatar
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    RNG... ask yourself this..

    How many poor people hire employees?

    Trickle down in the US was in place during the greatest periods of Economic Growth in the US (Now Canada I will have to say I don't know)

    Harding
    Truman
    Kennedy
    Reagan
    Clinton
    Bush

    with exception of 13 months of the Bush Adminstration we saw above average economic Growth.

    FDR extended the Depression 7years longer than he would have if he had let the markets naturally correct
    Ike increased taxes and tried to inject government into the economy and ended the Post war boom.
    LBJ, Nixon and Ford brought us "Stagflation"
    Carter brought is one of the worst economies of the 20th century post Great Depression
    GWH Bush tax increases slowed the Reagan boom
    Obama gave us the worst recovery in US History.. the only 8 years that people were worse off than when it started, they incomes declined and net worth declined (even with the massive growth in the stock markets). Because over 1/2 the people that got jobs they were part time jobs

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    Quote Originally Posted by NightSwimmer View Post
    You're right. Working class taxpayers saved about $300.00 per year due to the Bush tax cuts. That amounted to about a $0.14 per hour pay raise.
    After the GWB cuts the working poor received more in tax credits than they paid in, it was much more than that on the bottom end of the pay scale.

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    RNG
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    Quote Originally Posted by TNVolunteer73 View Post
    RNG... ask yourself this..

    How many poor people hire employees?

    Trickle down in the US was in place during the greatest periods of Economic Growth in the US (Now Canada I will have to say I don't know)

    Harding
    Truman
    Kennedy
    Reagan
    Clinton
    Bush

    with exception of 13 months of the Bush Adminstration we saw above average economic Growth.

    FDR extended the Depression 7years longer than he would have if he had let the markets naturally correct
    Ike increased taxes and tried to inject government into the economy and ended the Post war boom.
    LBJ, Nixon and Ford brought us "Stagflation"
    Carter brought is one of the worst economies of the 20th century post Great Depression
    GWH Bush tax increases slowed the Reagan boom
    Obama gave us the worst recovery in US History.. the only 8 years that people were worse off than when it started, they incomes declined and net worth declined (even with the massive growth in the stock markets). Because over 1/2 the people that got jobs they were part time jobs
    Now ask yourself this. Why are the markets booming and the middle class dying?

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    Southern Strategy Liberal OldGaffer's Avatar
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    TNV, still pushing that failed "trickle down" meme.

    Thanks from Dragonfly5 and BigLeRoy

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    Quote Originally Posted by NightSwimmer View Post
    It might, if all goods were being produced by workers earning minimum wage.
    Mr. Swimmer,

    With regard to the restaurant industry, aren't all goods produces mostly by minimum wage workers?

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