Small businesses would love FJG – wage increases
Mark Paul et al, 18. Mark Paul is a postdoctoral associate at the Samuel DuBois Cook Center on Social Equity at Duke University. William Darity Jr. is Samuel DuBois Cook Professor of Public Policy, African and African American Studies, and Economics, and director of the Samuel DuBois Cook Center on Social Equity at Duke University. Darrick Hamilton is associate professor of economics and urban policy at the Milano School of International Affairs, Management and Urban Policy and Department of Economics, New School for Social Research, and director of the doctoral program in public and urban policy at the New School. Khaing Zaw is a research associate at the Samuel DuBois Cook Center on Social Equity at Duke University. “A Path to Ending Poverty by Way of Ending Unemployment: A Federal Job Guarantee.” https://www.rsfjournal.org/content/rsfjss/4/3/44.full.pdf
32. Although these examples review modest increases in the minimum wage, we argue that small businesses will likely benefit from the more sizable wage increases that would occur if the FJG were enacted. Businesses would benefit because the program would increase the purchasing power of working-class households, who have a higher marginal propensity to consume. Additionally, with a higher wage, the economy would likely see more robust productivity growth.