During the 2012 presidential election, there was much talk by Republicans about “makers” and “takers.” The essence of the their argument was that the wealthy were job creators while those on any kind of public assistance were not contributing to the economy.

If the success of the US economy is dependent on consumption, perhaps we should stop talking about “makers” and “takers” and focus on “hoarders” and “spenders.” Forbes Magazine reported the net worth of the 400 richest Americans rose from $1.7 TRILLION in 2012 to $2.0 TRILLION in 2013. Just imagine what might happen if most of that $300 BILLION in new wealth had gone to lower and middle income wage earners. Chances are pretty good they would have spent it on food, clothing, household needs, maybe a new car or home improvements. Would this contribute to growth in the economy as the demand for these goods and services have to be filled? That is why many, myself included, believe an increase in the minimum wage will put money in the hands of those most likely to spend it, adding to the demand for goods and services.

For what it’s worth.
Dr. ESP