Bryce Covert writes that "Entrepreneur and self-described one percenter Nick Hanauer warned Congress that rich people like him aren’t the engines of the economy. In a testimony before the Senate Banking Committee, he explained why, in fact, middle-class workers are the economy’s real job creators:
In the same way that it’s a fact that the sun, not earth is the center of the solar system, it’s also a fact that the middle class, not rich business people like me are the center of America’s economy. […]
As an entrepreneur and investor, I have started or helped start, dozens of businesses and initially hired lots of people. But if no one could have afforded to buy what we had to sell, my businesses would all would have failed and all those jobs would have evaporated.
He described what he calls a “virtuous cycle” in which middle class consumers have money to buy goods, which increases demand and therefore hiring. The rich, on the other hand, don’t fuel the economy with their consumption in the same way. “I earn 1,000 times the median wage, but I do not buy 1,000 times as much stuff,” he noted." (read more)
On the other hand, inspite of record corporate profits and sky high CEO compensations (which only recently are seeing a downswing), as per a New America Foundation report, minimum wage has changed little in the last 50 years. Come on, 50 years and the majority are still making what they did a half century ago? Prices for everything are changing as they are keeping pace with the changing times, then how come we dont have a "Living Wage"? Shouldn't the minimum wage keep pace with the changing times?