cicerone imposter wrote: " I see it a little differently. The more consumers are able to buy goods and services, it increases demand that translates into more jobs."
That isn't different from what I wrote.
Note that real wages for the working class (or if you prefer, lower class) have decreased even more than for the middle class.
cicerone imposter wrote: "The more money that goes into circulation by government spending translates into more consumer spending that increases demand for more goods and services thereby increasing jobs."
That's true if the federal government borrows to raise the extra funds, and that increases the public debt. If the government increases taxes, the results depend on whether those taxed are losing income they would otherwise spend. For example, sales taxes and other regressive taxes (including VAT taxes, which are passed on to consumers) just transfer funds from the private sector to the public sector, and government spending increases at the expense of private spending, with no net increase in demand.
Total demand is what counts. That's private spending plus local, state, and federal spending.
I prefer redistribution by means of an expansion of the Earned Income Tax Credit. That avoids the whole minimum wage debate. A financial transactions tax (with income appropriate exclusions) could fund it.
Also, government spending is a hard sell these days politically. Giving workers more money and letting them decide how to spend it could be a easier, if the idea is presented well.
Part of the reason the Obama administration stimulus was only weakly effective despite its large size, was that the federal share of national spending was already large before the Great Recession, and the recession decreased federal tax revenues by large amounts. So a large part of the stimulus was eaten up just making good on lost federal revenue, not net new spending. Another big chunk of the stimulus was eaten up by spending cuts by state and local governments. All of that had to be offset before any federal stimulus spending could offset the recessionary drop in private spending.