I’m not saying the money isn’t already in the system.
What I’m saying is that putting more money in the hands of the working class creates inflationary pressures because the money is spent, not invested. When spending increases, prices go up.
This is not to knock the working class from gaining economic power, but the reality that the economic power is only real if it is used prior to inflationary pressures negating it.
It’s two hands washing each other. The desire is to keep inflation low and to have small, marginal increases in wages that almost match inflation, but are slightly greater. Then, to help those working class/working poor people invest some of that money so that they’re not creating the inflation that harms them today, but generating future income that helps elevate them.
The death spiral at the lower rungs of the economic ladder has to be solved so that government (often the least best here of money) isn’t forced to spend more, and waste too much if it in the administration if such programs.
Raising income tax thresholds at the low end, improving savings incentives, and creating a more entrepreneurial/self-sufficient mindset amongst the masses would go a long way towards helping achieve the raising of lower level living standards without the spectre of increased wages = increased spending = inflationary pressures.
As always, there’s more than one way to skin the cat, so I appreciate the thoughtful discussion.
