First, poor have lower savings rate, and consume faster, so money velocity is higher. Second, minimal wages are local, and I would imagine that poor people on average spend a bigger fraction of their consumption locally (but I am not as certain about this one).
First, poor have lower savings rate, and consume faster, so money velocity is higher. Second, minimal wages are local, and I would imagine that poor people on average spend a bigger fraction of their consumption locally (but I am not as certain about this one).