Alright, so it has taken me awhile to post this, but I wanted to think about this some. The Senate on Wednesday could not break the deadlock imposed by conservatives over the clean minimum wage bill. So in order to pass some kind of minimum wage bill, the Democrats capitulated and will offer a dirty version of the bill with tax handouts to the Republicans big money contributors.
The tax give away only amounts to $8 billion over the next five years, and it is offset by ending other subsidies elsewhere.
Because this is an attempt by Senate conservatives to kill the much needed wage increase. They are banking on the House and Senate not being able to agree on having the handouts, killing the bill, or agreeing to eliminate them from the final version of the bill, which Senate conservatives will filibuster again.
Proof of this comes from the fact that two Republican Senators introduced a bill to eliminate the federal minimum wage. There is no purpose for doing this. It makes no economic sense if you want to build up the economy and raise people out of poverty to decrease wages. It is a simple fact of economics that the more money you pump into an economy the better off everyone is, particularly if that money circulates. Poor people spend whatever money they have, so giving the poor a pay raise will immediately circulate that money back into the system. For more on this see the minimum wage issue page.
Conservatives want us to believe they are looking out for the small business owner, but in actuality, (more…)