Wealth gap: A guide to what it is, wh...

Wealth gap: A guide to what it is, why it matters

There are 8 comments on the KING-TV Seattle story from Feb 24, 2014, titled Wealth gap: A guide to what it is, why it matters. In it, KING-TV Seattle reports that:

From the White House to the Vatican to the business elite in Davos, Switzerland, one issue keeps seizing the agenda: the growing gap between the very wealthy and everyone else.

Join the discussion below, or Read more at KING-TV Seattle.

Scott Britton

Tacoma, WA

#1 Feb 26, 2014
A minimum wage hike would be beneficial to most Main Street Small businesses. Here is why. Lets say you have five hundred customers who purchase at your specialty retail shop at least once each year. If those workers earn $10 per hour, what they spend in your store is going to be impacted by their disposable income. Now raise their incomes to $15 per hour, instant increase in disposable income, more to spend at their favorite shopping places. While your increase in employee cost will have an impact, the increased expense of three to five employees it takes to run a small Main Street shop, will be more than made up for by the increased visits and spending of the newly enriched customers.
Likewise if you own a small paving company, a landscaping company, a remodeling company etc, Because married people have two incomes the disposable income by such families will enable more people to afford your services, many many more. So your increased cost in labor costs will have much less of an impact than all of the new customers you will get from an economy where there is more money floating around. That is the problem when money is concentrated in too few hands. Those few hands just don't spend as much as many hands will. So while we must protect property rights and reward those who create value through entrepreneurship, we must balance the prize for being the one who takes responsibility for stewardship, with the need to offer living wages to all citizens. If we rise to do this, we will need fewer government programs to assist the poor because there will be fewer who are poor! Better pay means better retention of employees and less turnover and training expenses. When there is a gold strike the effects of a influx of cash builds ghost towns into thriving cities. New restaurants and other businesses spring up to serve the new money. The same kind of thing will happen with a large increase in minimum wage. large companies that have huge payrolls of low paid workers, but whose workers cannot even afford to shop or eat at the places which they work, will also benefit from the increased wages of everyone in the community as more people are able to afford their offerings. The bottom line is the best operations will not only continue to thrive, but their businesses should see net increase in profit because of an increased minimum wage.
Some businesses who are new may have a bit more trouble funding expansions where projects will be more costly die to the increase in wages. In such cases it may make sense to just stay lean and enjoy the fruits of a smaller operation rather than sacrificing so much time and energy to grow to heights that are not even necessary to have a comfortable living. As an entrepreneur I don't want to be faced with a glass ceiling, but on the other hands, if getting ahead means that I have to step on the people beneath me, that is not such a good option either. We should set a reasonable baseline one that is in line with the true cost of living, and then have a merit system that rewards hard work and loyalty with even better pay. Only than will the liberty we purport to stand for be a liberty that is truly for all Americans.
Kearns

Oakland, CA

#2 Mar 1, 2014
Switch our economic system to communism, with all funds held in one national credit union. Maybe a cap on personal income of $10 million? Allow a gray-market using less regulated, somewhat laissez faire businesses, entertainment, innovation; a free floating secondary currency. Possibly, hold a steady third currency strictly for international transactions.

Since: May 13

Location hidden

#3 Mar 16, 2014
Yes it matters. Aside from the personal suffering of the poorest and all the resultant continuation of thawting, possibly affecting generations, poverty does not promote good societal cohesion, health or economic growth. The middle classes experiencing a wider gap is a bad thing too as it sends out a message that hard work is not duly rewarded.
Trust Jesus

Martin, TN

#4 Mar 20, 2014
U wont' need it
TN Voter

Clinton, TN

#5 Mar 23, 2014
Kearns wrote:
Switch our economic system to communism, with all funds held in one national credit union. Maybe a cap on personal income of $10 million? Allow a gray-market using less regulated, somewhat laissez faire businesses, entertainment, innovation; a free floating secondary currency. Possibly, hold a steady third currency strictly for international transactions.
Let's start off with you!!! Since communism is worked so well in the past let's try it here with the idiots leading the way that you helped put in office..... Yeah great idea... I bet you drive a Subaru and have all kinds of green stickers on your car

“Grow the power within yourself”

Since: Feb 11

Location hidden

#6 Mar 28, 2014

Instead of raising minimum wage,,something everybody has to pay for everywhere, lower property taxes, something bound to be followed by lower housing prizes and more options. Likewise, lower gas taxes, one of the most regressive taxations in modern society.

All a high artificial "minimum wage" will do is create even more inflation that we pretend does not exist.

Finally, if you want to work a place with less need to put in an effort, the bottom is now raised way above average effort..
Tea Party Express

Paducah, KY

#7 May 23, 2014
When the minimum wage was established in 1938 it was .25 cents an hour. If it had increased in proportion to inflation it would be $4.20 today.
Economist

Cadiz, KY

#8 May 25, 2014
VeganTiger wrote:
Instead of raising minimum wage,,something everybody has to pay for everywhere, lower property taxes, something bound to be followed by lower housing prizes and more options. Likewise, lower gas taxes, one of the most regressive taxations in modern society.
All a high artificial "minimum wage" will do is create even more inflation that we pretend does not exist.
Finally, if you want to work a place with less need to put in an effort, the bottom is now raised way above average effort..
You have the cart before the horse. Rising prices do not cause inflation. They are a symptom of inflation. Inflation is caused by the Federal Reserve putting more money into circulation.

Tell me when this thread is updated:

Subscribe Now Add to my Tracker

Add your comments below

Characters left: 4000

Please note by submitting this form you acknowledge that you have read the Terms of Service and the comment you are posting is in compliance with such terms. Be polite. Inappropriate posts may be removed by the moderator. Send us your feedback.

Berkeley Discussions

Title Updated Last By Comments
News The 25 Most Dangerous Cities in the U.S. Are Mo... (Nov '10) 5 hr fire exit 20,278
News Doctor heads to court after online sex sting (Nov '06) 6 hr Brittle Fingers 17,209
News Al Gore: "I Could Become Catholic Because of Th... (May '15) 7 hr swedenforever 36
News If there's alien life in the universe, where is... (Jul '15) Mon North Mountain 142
corruption Alameda May 21 cookie 1
News Kent, Magowan join Bay Area Sports HOF May 18 Sheri 1
News UC Berkeley student victim of armed robbery on ... May 18 Sheri 1
More from around the web

Personal Finance

Berkeley Mortgages