The former Secretary of Labor takes on those who claim that a raise in the minimum wage would be a “job killer.” Instead, Reich, a trained economist, points out a simple fact: economies grow when people spend. People living on $7.25 an hour can only cover essentials, and often can only do so with the help of safety net programs, which are being cut. Reich points out that Walmart could have raised the wages of its $9 an hour employees to $15 by using the money spent buying back stock on salary.
If we want more jobs and higher wages, we need more spending (and less billionaire greed). Raising the minimum wage (and extending unemployment benefits) would give working class people discretionary income. As they spend more, companies will need more workers to make and sell things. Reich is outlining common sense. Opponents of the minimum wage have no good data to support their claims, so they rely on fear-based rhetoric like “job killer.” They used the same language to demonize the Affordable Care Act. I’m with Reich and President Obama: “America needs a raise.”
Three cheers to Common Dreams for giving thinkers like Reich a platform that is not found in the corporate media (which includes PBS).