Vice President Joe Biden said in Saturday’s weekly address that raising the minimum wage is “good for business” and “really good for the economy as a whole.”
“There’s clear data that shows fair wages generate loyalty of workers to their employers, which has the benefit of increasing productivity and leading to less turn over,” he said.
“And I’m not the only one who recognizes these benefits. Companies big and small recognize it as well,” the vice president added, noting companies such as Costco and Gap are “choosing to pay their employees higher starting wages.”
Biden even appeared to suggest that raising the minimum wage might provide a larger boost the economy than giving tax breaks to the “very wealthy,” saying individuals living off the minimum wage “will go out and spend every penny of it because they’re living on the edge.”
“It’s good for business,” he said. “It’s helpful to the overall economy.”
The vice president’s political opponents on the right, however, do not seem to agree.
Last year, House Republicans unanimously rejected legislation to increase the minimum wage to $10.10 an hour over the next to years.
Further, a report issued by the conservative Heritage Foundation concluded that a higher minimum wage “costs jobs.”
“A major reason why the minimum wage is such an ineffective anti-poverty tool is that minimum-wage hikes cause businesses to reduce the number of workers they hire and the hours they ask their employees to work,” the think-tank’s report stated.
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