The news today is that consumer spending rose in August and it was driven by increases in income and wages. Ergo: continued economic recovery could be driven my raising the minimum wage.

Consumer spending in August rose 0.5 percent from the previous month after showing no gain in July, the Commerce Department reported Monday. It was the best result since spending also expanded 0.5 percent in June.

The acceleration in spending added to signs that the economy is sustaining strength in the current July-September quarter. Consumer spending accounts for about 70 percent of economic activity, and the lackluster showing in July had raised concerns about whether the economy would retain the momentum it built in the spring after a harsh winter.

Economists also said the stretch of solid gains in employment this year should help boost incomes.

“With incomes starting to rise a little faster, the outlook for consumer spending on everything, including housing, is brightening,” said Joel Naroff, chief economist at Naroff Economic Adivsors (sic).

Elect candidates in favor of a living minimum wage!

6 Responses to Economic Trend Supports Raising the Minimum Wage

  1. Denis Navratil says:

    So we have increased consumer spending and good employment news without living wage legislation. Why change directions if it is working?

    • nonquixote says:

      Living wages are already being raised with increasing frequency, except in WI, bar a notable recent request to do so by Barrett in Milwaukee. So for once I agree as several key examples, New York, Seattle, of expansion of raising the minimum wage is contributing to a better economic outlook and should continue with gusto. Hang around BB much more and you’ll be earning the label, “official liberal,” among your buddies. You’ll be out with the good news for your employees today then?

    • Ed Heinzelman says:

      The economy is making a much slower than hoped for but this clearly indicates that increasing wages has a direct impact on improving the economy.

  2. Denis Navratil says:

    If your jargon is to be believed, my employees would be all dead. And since they are not dead, I will proceed knowing that the “living wage” nonsense pedaled by the left is just that.

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