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Minimum Wage Increases Are Pro-Growth

By The Reverend Published: January 30, 2013

The praying mantis look-a-like Ann Coulter famously told a fellow Foxian that if New Jersey Governor Chris Christie did not enter the 2012 GOP presidential primary race, then Mitt Romney would be the GOP's candidate and the GOP would lose. Christie refused to run in 2012 and Coulter's prediction wound up becoming a good call for a Foxian propagandist.....at least the 'Romney losing' part.

If you are to be taken seriously in the Village, you must believe and then nod politely when others say that Chris Christie is a very, very serious future contender for the presidency. Recent polling data on Christie is interesting....

Among Democrats, 52 percent have a favorable impression of Christie while 23 percent have an unfavorable one. Among Republicans, 48 percent have favorable view and 27 percent have an unfavorable view. From last month, Christie’s standing among Democrats has improved by 12 points, while his standing among Republicans has declined by 11 points, according to pollster Tom Jensen.

Notice here that Republican approval ratings for Christie fell significantly after Sandy.......many Republicans turned off by Christie's willingness to work together and be seen on the same platform with the dreaded Barack Obama. Former Florida GOP Governor Charlie Crist received similar treatment from Republicans when he gave Obama a hug and shared a stage with the president down in Florida. Crist is now a Democrat.

New Jerseyans currently have a 73% approval rating going for the GOP governor.....primarily because of his appearances on teevee news during and after Storm Sandy alongside of President Obama, the perception being that the two leaders from opposing political parties were working bipartisanly (instant Village wood) to confront the damage and human misery following that very large storm.

Now, I don't much care for the New Jersey governor. I regard him as a big mouthed bully, quick to humiliate and embarrass media, constituents or other political figures if and when he has a mind to. More importantly though, Christie, like most of his GOP colleagues....still holds to the fairy tale of supply side economics. The economic theory that claims that wealthy and powerful corporations are our nation's genuine "job creators" ......with it's further claim that during a deep recession marked by high unemployment, if government would simply cut taxes and regulations on those alleged "job creators", the economy would see growth.

Governor Christie just vetoed a New Jersey legislature move to raise the minimum wage from $7.25 per hour to $8.50 per hour. Christie also rejected any notion of automatically indexing minimum wage rate increases in the future to inflation changes.

"The sudden, significant minimum-wage increase in this bill, coupled with automatic raises each year tied to the Unites States consumer price index, will jeopardize the economic recovery we all seek," Christie said in his conditional veto of the bill.

Because employers.....businesses....are not the job creators in our economy....and because consumers with money and/or credit in hand ARE our economy's job creators....then Christie has it backwards when it comes to increasing the minimum wage.

Increasing the minimum wage will result in MORE jobs, not less, as Christie claims. Increasing the minimum wage will spur the economy not deter it. Minimum wage employees or minimum wage-indexed employees will spend every penny of any increase to their wages. That spending of every penny, in turn, increases consumer demand, which in turn, increases the demand for workers.

Furthermore, a higher minimum wage....in any state....has a buoyant affect on non-minimum wages....helping to lift all wages, not just entry level. Lifting wage levels for all workers....increases consumer demand.....which is exactly the cure our slowly recovering economy is looking for. More money in the hands of average non-wealthy Americans is the way out of our lack-of-demand economic condition.

So, while Republicans may have fallen out of love with the loud mouthed bully from New Jersey because he got a little too chummy with the Kenyan Imposter after Storm Sandy....and are currently swooning for a future President Paul Ryan or a President Marco Rubio......independents and Democrats should recognize that Christie is not their friend either.

While it is true that Christie is not of the birther-winger camp of the GOP.....it is also true that Christie is the friend of the powerful and the wealthy. The New Jersey legislature's minimum wage increase bill would have created jobs.....it was a job creation bill. But because of Christie's misunderstanding of how jobs are created....OR....his fealty to the already-rich and powerful.....he vetoed the minimum wage increase.

It's odd. The Leaders of the political party which claims to know how the economy works and how jobs are created are always the first to prevent genuine job-creation legislation and pro-growth policies from being enacted.

It's as if the GOP doesn't know what it's talking about.

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