Living wage is 58k in Mississippi to 96k in New York
Living wage is 58k in Mississippi to 96k in New York.
The question is why should someone making poverty wages under 44k get 50k to 60k in unemployment benefits while staying at home doing nothing?
Because this recovery is going to be a bottoms up recover....from consumers to business and not trickle down recovery from businesses to consumers!
Remember most Americans moved from the middle class to poverty when the US moved living wage jobs staring with NAFTA in 2000 to China and Mexico. This over the last 20 years have hollowed out the middle class 58k to 96k jobs and replaced them with service or servant jobs like Amazon paying under 44k.
The result that most Americans live pay Pay check to pay check with less than $500 in savings for a rainy day.
So to shore up saving and increase spending during a pandemic were many are fearful for their lives, the goverment have decided to pay these workers a temporarily a living wage during the pandemic.
Now I understand that many will then prefer to protect themselves and not go to work making bank, but they will have a few thousands extra when things get better, they might go out and shore up the economy from the bottoms up.
If they are forced to go back making minimum wage, sure business will get their labor but the low incomes jobs might not support a rise in consumer spending to levels that would rejuvenate the economy substantially.
The economy was heading towards a recession anyway in January 2020 as the accelerating cost of living with rising rents and medical costs was eating a bigger portion of low wages leaving less and less for discretionary consumer spending.
Thus now the goverment have to choose to continue on the path of austerity which means this recession could turn into a depression and the recovery would be mute or non existence for a few years, or pay up with free covid 19 testing and contact tracing so maybe these workers would feel comfortable to spend the extra money.
Without that, they can force
people to go back to work paying them minimum wage, but that in my opinion is not going to bring back robust consumer demand in the middle the worst human and economic calamity in over 100 years.
If republicans don't do that, the stock market eventually will price in a steeper recession or worse a depression, hitting them in their pocket books were it hurts and forcing them to do what they did in April.
Let's see what happens next.