By raising the minimum wage.
The CEOs of the Fortune 500 received a 21% raise in wages since 2009.
The average current salary of those same 500 CEOs is $11.7 million per year.
Those that work for minimum wage have not received an increase in their salary in those years.
The average minimum wage worker last year earned $15,000. Each of those CEOs earned $15,000 on their first day of work this year by 11:30 AM. On January 2, 2014, their first day of work they earned a minimum wage earner's annual salary by 11:30 AM.
Rep. Paul Ryan from Janesville, Wisconsin wants to save the American taxpayer save $4.3 billion to the federal budget too. But, he wants to cut food stamps while refusing to raise the minimum wage.
Raising the minimum wage will not cost jobs to the USA economy. Why? Something called Aggregate Demand.
Aggregate demand is the demand for the gross domestic product (GDP) of a country, and is represented by this formula:
Aggregate Demand (AD) = C + I + G + (X-M)
C = Consumers' expenditures on goods and services.
I = Investment spending by companies on capital goods.
G = Government expenditures on publicly provided goods and services.
X = Exports of goods and services.
M = Imports of goods and services.
Just in theory to explain how it all works; let's say the minimum wage raises the consumer expenditures by twice what it is now.
(AD) = (2)C + I + G + (X-M)
What do you think? If the minimum wage increased the Aggregate Demand by two times for the expenditure of consumer goods and services would that increase demand?
Of course it would. If demand is increased would that cost jobs?
Of course it wouldn't. If demand is increased would that increase the number of jobs to keep up with demand?
Of course it would.
It is time to increase the minimum wage and that is not the minimum wage of CEOs either. CEOs should not earn a minimum wage, they should earn in accordance with the demand of their product. When a CEO is paid according to the demand of their product in the market, would there be earners making $15,000 per year anymore. Heck no!
The CEOs of the Fortune 500 received a 21% raise in wages since 2009.
The average current salary of those same 500 CEOs is $11.7 million per year.
Those that work for minimum wage have not received an increase in their salary in those years.
The average minimum wage worker last year earned $15,000. Each of those CEOs earned $15,000 on their first day of work this year by 11:30 AM. On January 2, 2014, their first day of work they earned a minimum wage earner's annual salary by 11:30 AM.
Rep. Paul Ryan from Janesville, Wisconsin wants to save the American taxpayer save $4.3 billion to the federal budget too. But, he wants to cut food stamps while refusing to raise the minimum wage.
Raising the minimum wage will not cost jobs to the USA economy. Why? Something called Aggregate Demand.
Aggregate demand is the demand for the gross domestic product (GDP) of a country, and is represented by this formula:
Aggregate Demand (AD) = C + I + G + (X-M)
C = Consumers' expenditures on goods and services.
I = Investment spending by companies on capital goods.
G = Government expenditures on publicly provided goods and services.
X = Exports of goods and services.
M = Imports of goods and services.
Just in theory to explain how it all works; let's say the minimum wage raises the consumer expenditures by twice what it is now.
(AD) = (2)C + I + G + (X-M)
What do you think? If the minimum wage increased the Aggregate Demand by two times for the expenditure of consumer goods and services would that increase demand?
Of course it would. If demand is increased would that cost jobs?
Of course it wouldn't. If demand is increased would that increase the number of jobs to keep up with demand?
Of course it would.
It is time to increase the minimum wage and that is not the minimum wage of CEOs either. CEOs should not earn a minimum wage, they should earn in accordance with the demand of their product. When a CEO is paid according to the demand of their product in the market, would there be earners making $15,000 per year anymore. Heck no!
