Quote (Brian_D @ Jul 19 2014 01:22pm)
What happens when people are paid more money?
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What happens when people spend more money?
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What happens when businesses make more money?
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3 simple questions, thank you.
You're not increasing the amount of goods or services in circulation, so nothing besides an inefficient redistribution of wealth.
Businesses cannot make more money by giving away more money.
A well-educated, populous middle-class is more productive, and their high rate of production does lead to wealth that benefits businesses, but you're wrong to insinuate that paying people more is the cause of this. A strong middle class is productive, and this creates wealth that benefits businesses. You cannot artificially create a middle class by raising the minimum wage, you need to redirect tax dollars into education and job training.