The Olympia Chapter of the Fellowship of Reconciliation works for a nonviolent world, a healthy environment, social justice, economic justice, and peace.
We bring together people of diverse ages, races, and faiths who are committed to active nonviolence as a transformative way of life and as a means of profound social change.
We model these principles by personal example.
We collaborate and dialogue with the larger community for mutual education and to engage in nonviolent and compassionate actions.
Raise Wages to Stimulate the Economy
Last Updated on Monday, 19 April 2010 15:08 Written by Glen Anderson Saturday, 09 May 2009 21:47
In the early 1900s Henry Ford significantly raised the wages of his workers building the Model T, so they could buy the cars they were building. This stimulated the whole economy.
From the mid-1940s to the mid-1970s, rising wages stimulated unprecedented prosperity in the US for 30 years. Real wages (in relation to inflation) peaked in 1976 and declined more sharply under Reagan. Ever since, businesses have been cutting wages, and workers have fallen into debt.
Squeezing workers downward was not sustainable. Now the economy has crashed. Business greed killed the goose that laid the golden egg.
“Trickle-down” does not work.
Especially in a weak economy, businesses don’t build new factories or hire people to produce goods that people can’t afford to buy.
To stimulate the economy, instead of “trickle down,” we must “gush up.”
Instead of giving money to businesses that caused the problems, raise the minimum wages and help workers organize to increase wages through collective bargaining.
When rich people get money they save it or speculate. But poor people spend income immediately and locally for food, clothes, and other necessities.
Also, increasing food stamps, unemployment compensation, and welfare benefits would quickly stimulate the local economy.
We’re all in this together!