Friday, August 21, 2015

Why is an investment in raising the minimum wage good for everyone, including Wall Street?

Because it adds circulating cash to the US economy. If there is more cash in the economy everyone benefits.

This is something the USA can do that few other countries can do. To begin other allies, such as Japan, already have a higher quality of life than the USA and they also have a better minimum wage. Europe is similar, but, where people still aren't working there have been social programs to continue the growth in the countries. Growth ultimately employs people and reduce the need for social programs.

Emerging economies will have the most trouble maintaining their economic footprint. But, with added circulating cash in The West's economies, where the two meet there will be greater stability in the emerging economies. 

So, when the USA has an increase in the minimum wage, it has a global effect to enhance stability. The stock returns may be smaller this year (Bear Markets), but, it won't be as much with increased circulating cash/capital. This same paradigm was tapped in 2009 when President Obama came to office. The difference is that in 2009 the monies were from the US Treasury; this is from the RECOVERED businesses which will have a significant return to their own stock prices and will move more inventory. The movement of inventory alone will provide a good return on stocks prices. 

It is going to be okay. It is time the USA recover from nearly a decade of increasing poverty rates and the status of the working poor.

Recently, there was a report stating many of the newly employed were college graduates. That FACT validates the "American Dream" as real and palpable. AND. Those employed with their college degrees had good paying jobs without need for social supports.

Kindly, think about it. Okay? When Americans earn well, there is less and less need for welfare, medicaid, housing subsidies and food stamps (dependency status). The good news is a real slice in the pie. A real chance at owning a home. We need our colleges and universities and anyone that seeks to end that aspect of American accomplishment is causing increased poverty rates and economic failure with higher dependency rates of the American people.