The minimum wage impact is so minuscule it's like adding drops of hot water to a tub of cold water hoping it will get warm enough for a bath. We have a $17 trillion dollar federal deficit. A 1.7 trillion dollar budget deficit to add to it every year. Students have a trillion dollars in student loan debt and there is another five or six hundred billion in credit card debt. Our accounting methods are completely invalid based entirely on consumption and assuming an infinite supply. There have been two major market crashes in the last 15 years. The dot com crash in 2000 and the sub prime mortgage crisis in 2008 It takes middle class investors six or seven years to recover from each crash. Unregulated money markets create this shift in wealth.A $15 minimum wage is just drops of hot water in a very cold economy but it would give some temporary relief to millions of Americans. The following chart illustrates why the middle class is losing ground.
Imagine you invested $100,000 in a 401K in 2000. You lost 50% in the dot com crash. In the recovery you doubled your investment for a 100% return. Then you lost 50% in the sub prime mortgage crash but again in the recovery you doubled your investment for a 100% return. In 15 years you've gained nothing even though your annualized rate of return is 6.5%.
(-50 + -50 + 100 + 100) / 15 = 6.67. With this type of money market, wealth will continue to shit to the 1% and poverty will continue to grow as that wealth puts pressure on the cost of living.
We need a major shift in priorities in Washington!
Paula M Overby, changing the dialogue of American politics