John Lawrence ("Society May Pay as Income Gap Widens," Aug. 3) and David M. Gordon ("Concentrated Wealth Poses Threat," Aug. 5), are concerned with the income gap. Unfortunately, they offer no solution. There are relatively simple solutions, however, to this problem and to the problem of stimulating the economy.
Increased consumption is the only true stimulant to the economy, not tax preference gimmicks to encourage investments. In World War II, industry expanded happily to meet demand despite a 90% excess profits tax.
In peacetime, the best way to increase consumption is to increase the pay of the lowest paid workers. They put all of their money into consumption.
The federal government, however, has not allowed the minimum wage to increase in any reasonable relation to the cost of living. The minimum wage was $3.10 per hour from 1977 to 1981 and $3.35 per hour from 1981 to the present--a 25-cent-per-hour increase in nine years!