I have been thinking a lot these days about the shrinking middle class. It is my believe that the middle class is shrinking do to no wage inflation. I have been thinking about how to get more money in that sector. Yesterday they made a huge push for a tax cut. This tax cut and all of its efforts will put $1,000.00 in the hands of the middle class.

Let’s raise minimum wage to adjust from the 1968 levels and tie it to inflation. I believe this is what has had the most significant effect on wage inflation. This would put minimum wage over $20.00 an hour. Let’s put things in perspective as it pertains to the $1,000.00 mentioned above. If you raise minimum wage by $.50 this would equate to the tax cut that is going to be great for the middle class. You wouldn’t be able to raise it all very quickly, as it could crest hyperinflation and possibly crash the economy all together. You would have to push it up at a $1.00 per year. I believe this will get support from both said as it has in the past. The fight will be with the lobbyist. It will take significant effort from the public to put pressure on the elected officials.

If you would raise minimum wage how does it effect everyone else. I believe it will have a trickle up effect. It will force wage inflation. The thoughts of dropping taxes today will create more jobs is true, but not at the scale that it would have more than ten years ago. Interest rates have been so cheap, if a business wanted to expand it has already done so. It will hopefully push new business to the states. We will see.

Redistribution of wealth. This has been interesting topic as it pertains to that topic. How many times has both sides of the aisle done thing to help the top 1%. But no one calls it redistribution of wealth. Only when it pertains to everyone else. Makes you think.

Negative effects:

Could crash economy if done to quickly

Could reduce number of jobs due to consolidation

Hyperinflation

Don’t forget the cheeseburger effect. $10.00 cheeseburgers

Positive effects:

Creates wage inflation

Increases consumer spending

Lowers cost of benefits from the government as it should push full time workers out of the the range for support.

Someone smarter than me provide facts as it pertains to my opinion. Please stick to the facts. I apologize for the lack luster planning and grammar in this post. I felt it important to get it out there was the priority.

Let’s get the conversation started.