Work in Progress Blog: Frank Knapp: Boosting Wages Boosts Demand
By Frank Knapp Jr.
Work in Progress Blog, US Department of Labor, Oct 15, 2014. Also in National Law Review, Oct 20, 2014
The biggest problem facing small businesses is the lack of demand for their goods and services. If the Great Recession is technically over and Wall Street is booming, why haven’t small businesses seen a real increase in consumer demand? There’s a simple answer: consumers who are or could be shopping on Main Street don’t have the buying power they used to have.

In my state, per capita income has fallen by nearly...