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tclambert

(11,129 posts)
15. Excellent comment. Ford realized better-paid workers made better customers.
Wed Oct 22, 2014, 02:41 PM
Oct 2014

And the money workers spend gets spent over and over, so there's a multiplying effect. Moody's did a study on this (https://www.economy.com/dismal/article_free.asp?cid=102598) and found $1 in Bush's tax cuts for the rich resulted in about $0.29 economic stimulus (in other words, a loss of 71 cents), whereas road-building programs gave $1.59 stimulus for every dollar spent, and Food Stamps came out on top with $1.73 stimulus for every dollar spent.

And it's exactly because of what you said: "When the poor get money they spend it. When the rich get money they keep it." Working people, especially the working poor, spend it, and spend it quickly. Studies have shown that, contrary to popular Republican belief, increasing the minimum wage actually increases jobs. It's because you have customers with more money to spend, and those are the real job creators. Nobody ever increases the company's staffing levels because the CEO got a tax break. But if working people in the neighborhood get raises, that neighborhood becomes an instant prosperity zone.

Henry Ford himself later called the $5/ Day wage “the greatest cost-cutting move I ever made.” rafeh1 Oct 2014 #1
Germany lancer78 Oct 2014 #2
i said avg wage not minimum wage rafeh1 Oct 2014 #3
they also don't have crappy, shameful corporations like walmart and monsanto. redruddyred Oct 2014 #19
Excellent comment. Ford realized better-paid workers made better customers. tclambert Oct 2014 #15
Raise minimum wage. coos bay tom Oct 2014 #4
Hello bigwillq Oct 2014 #5
It sounds good for government savings. dotymed Oct 2014 #20
Would be a good shot in the arm... Wounded Bear Oct 2014 #6
shot in the arm coos bay tom Oct 2014 #8
First - welcome to DU! I hope you like it here. Kber Oct 2014 #13
Unfortunately, the people with the actual power... Wounded Bear Oct 2014 #16
The GOP apparently wants to continue to spend the money on public assistance and keep the wages low Thinkingabout Oct 2014 #7
You are too kind genxlib Oct 2014 #17
K and R bigwillq Oct 2014 #9
This argument cuts the legs off the whining bellyaching rightwing! Generic Other Oct 2014 #10
Well, if it would save the government 7.6 billion... malthaussen Oct 2014 #11
That's the argument by many wealthy, but that's not how it works in reality. herding cats Oct 2014 #12
Who you kidding Man from Pickens Oct 2014 #14
Message auto-removed Name removed Oct 2014 #18
The prices have been going up anyway. The masses can spend into competition if given a chance. Tikki Oct 2014 #22
You know how they have the grading letters in the front window of a restaurant or whatever...There needs to Tikki Oct 2014 #21
$10.10 is not enough to live on, you still need food stamps, Medicaid, etc. Dont call me Shirley Oct 2014 #23
It's possible to live on 10 bucks an hour. KentuckyWoman Oct 2014 #24
$20 an hour for a family of 3 or 4, is just barely squeezing by, paycheck to paycheck. Pray, pray Dont call me Shirley Oct 2014 #25
Totally agreed. KentuckyWoman Oct 2014 #27
We're advocating for 10 dollars? abelenkpe Oct 2014 #26
Latest Discussions»General Discussion»$10.10 Minimum Wage Would...»Reply #15