As President Obama has said, raising the minimum wage isn’t just the right thing to do for working families, it is also smart economics. Consumer spending accounts for almost 70 percent of GDP. When you put more money in the pockets of working people, they don’t hide it in a mattress – they pump it right back into the economy, spending it on groceries, gas, school supplies and more.
In an economy driven by consumer demand, more money in people’s pockets means more customers for businesses. That’s why small business owners have said that they see higher wages as a sound business investment.