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!