Nick Hanauer: Minimum Pay Raise
on Monday, March 1, 2021Nick Hanauer Money Quote saying the amount earned is directly proportional to the amount spent for minimum wage workers – when. there is enough to cover necessities, it is all spent. Nick Hanauer said:
“The person earning the federal minimum wage of $7.25 isn’t going out to eat at restaurants. They’re not taking piano lessons. They’re not going to the gym or the yoga studio. They’re not sending mom flowers on Mother’s day. What good is this person in the economy? If you raise it to $15 an hour, they’re doing all of those things” — Nick Hanauer
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In this quote, Nick Hanauer argues that raising the minimum wage from $7.25 to $15 per hour would significantly benefit the overall economy. He suggests that at the current low minimum wage, people can only afford basic necessities and have no extra money left over to participate in other sectors of the economy through discretionary spending.
However, if the minimum wage was higher, these same individuals would now have more purchasing power to frequent restaurants, take classes, join gyms, and purchase goods and services from other businesses.
Hanauer implies that a higher minimum wage would create a cycle of greater consumer demand and spending that spurs broader economic activity, rather than the current situation where low-wage workers primarily spend all their earnings on just survival needs.