Increases in Minimum Wage Boost Consumer Spending

Source: Kai Filion, Economic Policy Institute, Economic Snapshot, May 27, 2009

The recently enacted American Recovery and Reinvestment Act included policies to help struggling families and create jobs. But an extremely effective and simple policy that achieves both of these goals is often overlooked: increases in the minimum wage. Each increase provides financial relief directly to minimum wage workers and their families and helps stimulate the economy. By increasing families’ take-home pay, workers gain both financial security and an increased ability to purchase goods and services, thus creating jobs for other Americans.

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