Senator Elizabeth Warren marches on with her amazing self!, this time on the subject of income inequality. Raising the minimum wage is a good idea, just like Robert Reich points out in this video. We know the arguments against raising the minimum wage well, and they can all be easily debunked. The bottom line is that wages are not keeping up with productivity as they should be. Why? Where is the other $14.75, the disparity between what minimum wage was in 1960 and what it is now when inflation is factored into the equation, going? It’s going to the top and it’s not trickling down as was promised.
Sen. Warren asked Dr. Arindrajit Dube, who is an assistant professor in the Department of Economics at the University of Massachusetts Amherst, and has done extensive research about a minimum wage increase’s effect on the economy:
If we started in 1960 and we said that as productivity goes up, that is as workers are producing more, then the minimum wage is going to go up the same. And if that were the case then the minimum wage today would be about $22 an hour. So my question is Mr. Dube, with a minimum wage of $7.25 an hour–what happened to the other $14.75? It sure didn’t go to the worker.
Tea Partiers always say they want America to be like it was in the 1950s. It can’t be until we adopt the same economic policies we had then. The 30-year+ long experiment called supply-side economics has failed and it’s time to go back to what made this country great to begin with: Fair wages, production kept in the U.S., income equality and progressive tax rates.
Watch Sen. Warren ask the question ALL of the politicians in Washington should be asking on our behalf: