So while we’re patiently awaiting president Obama’s jobs speech, and the debate continues as to whether he’ll go big with his proposal. Let’s take a minute to take a look at a not-so-big- policy change that would have an immediate positive impact on the economy. That would be, raising the federal minimum wage to $12.50 an hour, while increasing the Earned Income Tax Credit.
Now of course this sounds ridiculous given the current jobless crisis. But you know what? If the government can broker deals to cut the deficit at the expense of the working poor while the wealthiest 2% continue to benefit from those tax cuts that adds to said deficit without any revenue increases. Why nor raise the federal minimum wage and thus increasing the purchasing power of the working poor? Now I’m sure you’re thinking there’s no way something like this wold make it to president Obama’s desk. And you know what? With the current state of our political will, you’re probably right. However, take a few minutes of your time to review the following interview with Jeannette Wicks-Lim of the PERI (Political Economy Research Institute) via The Real News Network. Do take a moment to check it out and tell me if it makes sense, will you?
What you will see is just how this can be done, and very little cost. Yes, for a measly $51 Billion the Earned Income Tax Credit can be extended while raising the minimum wage to $12.50 an hour.Seriously, she makes a very good case to do just that. And you know what? All it would take for the government to pay for it, is to tighten up on the $60 Billion in wasteful spending in Iraq and Afghanistan over the last 10-years via no-bid contracts. With $900 Million spent in Afghanistan each week, wouldn’t you say we’d be better served to make a small $51 Billion investment domestically? By “going big”, president Obama should include these proposals.