Simple Depiction of Wealth Inequality In The U.S.
Research from the Institute for Policy Studies shows that recent Wall Street bonuses are way out of line with minimum wage earners. Waaaay out of line. And that’s just their bonuses.
Make you think twice about raising the minimum wage? And think about this — there’s a greater economic impact because low-wage people spend most, if not all, of their money because they have to. They have to pay for a place to live, feed their families, clothe their kids, and so on and so forth. That spending has a much greater stimulative effect on the economy.
While high wage earners may spend more on big ticket items, they can also afford to stash extra cash in a bank.
The researchers estimate that every dollar going to low wage workers adds an estimated $1.21 to the economy whereas each dollar going to high-income households adds only $0.39.