Friday, November 24, 2006

Minimum Wage Increase Favours Business

The right wing traditionally argues that minimum wages hurt business but then again they support tax cuts because it puts more money in folks pockets to spend. So does a minimum wage increase.

Democrats, set to take control of both chambers of Congress, have vowed to make a hike in the minimum wage a top priority come January.
And analysts say a boost, while likely to be fought by business groups and some retail-industry lobbyists, would benefit some value-oriented stores.That's because many minimum-wage earners are struggling to make ends meet, so any extra dollars in their pockets are likely to be spent rather than saved.
"And where are they going to spend it? Wal-Mart" said Howard Davidowitz, chairman of retail consulting and investment-banking firm Davidowitz & Associates.
After all, it was Lee Scott, CEO of Wal-Mart, who made headlines last year when he declared that the world's largest retailer -- itself a frequent target of labor and anti-poverty critics -- favored a raise in the minimum wage.

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