Wed Feb 6, 2013, 01:24 PM
DonViejo (11,549 posts)
Christie vs. Cuomo: Trickle-down vs. middle-out economics
Both 2016 presidential hopefuls fancy themselves populists, but only one supports raising minimum wage
BY RICHARD KIRSCH, NEXT NEW DEAL
Two potential candidates for president in 2016, New Jersey Governor Chris Christie and New York Governor Andrew Cuomo, have taken opposing positions on raising the minimum wage in their states. The debate between the two governors draws a sharp distinction between competing economic visions: trickle-down vs. middle-out economics. At the same time, it also shows how limited the current debate is when it comes to dealing with what’s needed to meet the needs of working families and, in doing so, change the direction of economic policy.
In late January, New Jersey Governor Chris Christie vetoed a small increase in the minimum wage, from the current federal minimum of $7.25 an hour to $8.50 an hour. Christie said that raising the minimum wage would “jeopardize New Jersey’s economic progress.” Christie based his opposition on concerns about small business, although two out of three low-wage workers are employed by corporations with over 100 employees.
Across the Hudson, New York Governor Cuomo argued just the opposite in his State of the State address. Cuomo made the economic case for how putting more money into people’s pockets by raising the minimum wage will move New York’s economy forward:
Increasing the minimum wage leads to greater economic growth. Low-income individuals spend a larger percentage of their income than higher-income earners and salary increases in low wage occupations lead to increased demand for goods and services. Empirical evidence suggests that an increase of $1 in the minimum wage generates approximately $3,000 in household spending per year. Increased household spending will increase demand for goods and help businesses grow, thereby creating more jobs for New Yorkers.
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Christie vs. Cuomo: Trickle-down vs. middle-out economics (Original post)
|Auntie Bush||Feb 2013||#2|
Response to DonViejo (Original post)
Wed Feb 6, 2013, 02:48 PM
Auntie Bush (16,935 posts)
2. Cuomo's ideas certainly make more sense than Christies...another stingy ReRhug.
I hope the vast majority can see and understand the reasoning behind Cuomo's beliefs.