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'Workers drive economy, not billionaires': Woman explains free market is rigged to favor the rich

'Workers drive economy, not billionaires': Woman explains free market is rigged to favor the rich

Erin pointed out that the rich tended to hoard cash while working class people always spent their money, adding value to economy.

America is at a crossroads with the working class rising up to protest starvation wages, lack of benefits and poor working conditions. The income inequality divide is growing bigger every year and while the rich get richer, the poor are getting poorer. It wasn't supposed to be this way. The boomer generation certainly got to live out the American dream but with time, wages stagnated even as inflation rose. Politicians and business owners decried and lobbied any attempts to increase the minimum wage, leaving the working class struggling to put food on the table, and a roof over their heads. Trickle-down economics has been a colossal failure. The original reasoning was that tax breaks given to the rich would eventually trickle down in the form of reinvestment into the business and subsequently create more jobs. A study by the London School of Economics revealed that almost 50 years of tax cuts to the rich have benefitted no one but the rich, reported CBS News.

BRIESELANG, GERMANY - SEPTEMBER 04: A worker walks among shelves lined with goods at an Amazon warehouse on September 4, 2014 in Brieselang, Germany. Germany is online retailer Amazon's second-largest market after the USA. Amazon is currently in a standoff with several book publishers over sales conditions and prices for e-books, and hundreds of authors in the US and Europe have written letters in support of the publishers. (Photo by Sean Gallup/Getty Images)

 

While giving tax breaks has failed repeatedly, politicians are in no mood to change their ways. One concerned Twitter user, Alexandra Erin, pointed out that it was basic economics to invest in the working class rather than the billionaire class. She posted a Twitter thread explaining why and it just makes so much more sense. Here's why Erin believes the working class drives the economy and not the rich:

 

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Erin points out that the current economy starves the consumers, leaving them with no money to pump back into the economy. She also made the demarcation that it wasn't the existence of businesses that created jobs but rather the act of doing business that generated jobs.

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A recent report showed that corporations were swinging money into their pockets instead of paying their workers a sustainable wage. A report by the Center for Economic and Policy Research found that the federal minimum wage would have stood at $26 an hour today if it had kept up with the economy's productivity over the last 50 years, reported CBS News. Today, the minimum wage stands at $7.25, which means for every employee paid that much, the corporations get to pocket the difference in wages. Republicans continue to scoff at the idea of raising the minimum wage to $15 dollars, let alone $26. "We have seen that complete divorce between wages and productivity and massively increased inequality with most gains going to people at the top," said Ken Jacobs, the chair of the University of California, Berkeley Center for Labor Research and Education.



 

 

Even as companies cite inflation to increase prices, many are still reluctant to increase the wages of employees. Thousands of employees are quitting their jobs over poor pay and benefits in what has been dubbed the "Great resignation." Gravity Payments CEO Dan Price said companies who were paying a decent wage were experiencing employee retention and record-low resignations as opposed to those paying starvation wages. “Companies that are investing in employees, companies that are following that age-old norm that we know is the right thing to do, investing in your people, they’re not experiencing The Great Resignation. And so, some people have called it ‘a great reckoning,'” he said, reported News Nation Now. 

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