Went by faster than one of Madonna's boyfriends. "Economists predict this increase in minimum wage will mean an additional $5.5B in consumer spending."
It's good that news anchors don't understand the meaning of what they're reading. It could lead to career ending laugh line wrinkles otherwise.
So where actually is this $5.5 billion dollars right at this moment? Not that I don't trust you or anything, but can I see it?
Are there, all over this country, piles of cash stacked in storerooms at American businesses? Cause that's the only way the statement could be honest.
No Dave, you're over-simplifying again towards your evil Conservative ends. It's that business owners will have to accept a slightly lower profit margin, and the workers will benefit. Just a kinda government mandated profit sharing plan for low wage workers is all.
Well all right, cool. I'm just asking somebody to show me where the $5.5B comes from is all. Like I'm a business owner, and I'll just have to get by with the old yacht for another year. So money comes from my pocket, goes to the workers, I get that. But wasn't I already part of the consumer spending thing? If you take money I was going to spend and give it to somebody else to spend, how is new consumer spending added to our economy?
Now you're over-complicating things! Why don't you just tell me Mr. Smarty Pants, where you think this $5.5B is right now, since you seem to know everything, and don't want McDonald's workers to have decent lives?
OK. That $5.5B is right now in our pockets, and the pockets of McDonald's workers too. It's probably correct to say consumer spending is about to increase by that dollar figure. Also?
Economists say boost in minimum wage will cause $5.5B increase in cost of living. That'd be true too. What's going to happen is every product and service with a significant domestic minimum wage labor component, well prices are going up kids.
Business owners aren't really famous for apathy about slipping profit margins, oddly enough. In some market sectors they'll have to cut cost or close. Most of them will raise prices though.
Probably won't affect airline tickets, or the cost of a flatscreen TV. Likely will impact cost of daycare and groceries though. I'm still trying to figger which of these options are usually the end point for the spending dollar of an unwed mother working a drag job. Hmmm, beats me!
It will be at least a $5.5B increase in consumer spending. But that doesn't mean more camels will be purchased. Only means the price of camels just went up.