Friday, February 15, 2013

Purchasing Power


Marketers bombard us every day with messages about products and services they want us to buy. These messages use many different techniques to try to get us to spend our money on their products. Much of the money we spend is used for necessities, food, clothing, and shelter. The money we have left over is considered “disposable income”. Regardless of our reasons for spending our money, most of us have a finite amount that we can spend. Many of us strive to increase the amount of money we earn so we can increase our spending on the things we want rather than the things we need. Purchasing power is important to marketers. The more money we have, the more we can spend.

President Obama has a plan to increase the minimum wage to $9 an hour. Will this increase our purchasing power?

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