A Raise for Minimum Wage Increasing the nation’s minimum wage requirement could play an important role in strengthening the economy while helping low wage workers improve their quality of life. While the pay for American’s minimum wage worker remains stationary, the cost of living continues to rise. More and more families are relying on these front line jobs to provide for their families. In the State of the Union Address, President Obama claimed that he was in favor of increasing the minimum wage for workers under new federal contracts to $10.10 an hour, instead of the current $7.25 an hour rate. Increasing the pay of minimum wage employees will help restore consumer spending and in turn, power the economy.
Many businesses do not realize the consequences of their actions when they hire older, more skilled employees for jobs just to save a few dollars. These businesses are slowly but surely destroying the future of the United States economy because it is easier and less costly to hire older employees that they do not have to spend money training. It is easy to think about how raising the minimum wage could be beneficial, but it is much more difficult to see how such a thing could leave devastating effects on the United States economy. It is important to fully think about the lasting effects of controversial topics such as this one concerning the raising of minimum wage, because there is an enormous chance that they will affect
This type of result would only occur if the minimum wage was increased by a tremendous amount. A solution to this epidemic is underway: “the Fair Minimum Wage Act of 2013-would over the course of three years, gradually increase the minimum wage to $10.10…The bill would increase the gross earnings of a full-time minimum wage employee by $5,700 a year, lifting a family of three above the poverty line” (Martin). If this act is implemented, we would save millions of families, increase spending, and heal out economy in
Ultimately this is used to illicit a raise in GDP levels (Fiscal Policy). 3. An example of this would have been Obama’s Economic stimulus package. This is an expansionary policy as it pulls from money we may not even have as a country in order to avoid a serious collapse due to the population being cautious with their income causing a stall in the economic growth of the country. Therefore, with an economic stimulus package, people were more willing to spend their money (possibly even more than the stimulus was) and take out loans which all raise the GDP for the country as well as improve investor confidence in the market as a whole (Eaton, G.).
The advantages from higher minimum wage can have a positive effect on the whole economy flows, while the disadvantages have some negative effects on employment rates. This essay is going to discuss about how higher minimum wage affect economy. Body The effect can be both negative and positive .The supporters assume that a rise minimum wage increases the level of living and reducing poverty and they also think that it is a good way to improve on labor’s right. On the contrary , the others think that it increases unemployment ,specially those workers who are unskilled or handicap and there is possibility of encouraging teenagers to drop out of the school to work. Further more , at this point every small business face trade-off , people running small businesses make decision for changes in strategic by comparing benefits and cost at the margin , as long as the marginal profit exceed the marginal cost .
If we do not buy imported goods then they will not buy ours and without export revenue and foreign investments we would not be able to function financially. When exports increase so does the Gross Domestic Product (GDP). GDP is the dollar amount of all goods and services produced within the United States. When the GDP is high it signifies that our economy is healthy and stable. When companies can produce more due to demand they are able to hire more workers, which can lower the unemployment rate.
If not, the individual worker will expect continued monetary increases for the same level or amount of work produced. By tying in labor, skill, and education increases with financial increases, workers would be more driven to progress in their preferred field. Therefore, when making attempts to increase an even higher minimum wage, we need to stop and realize wages should be based on an individual’s knowledge and skill level and not focus on the general American public’s natural empathy. If you worked to get where you’re at, shouldn’t everyone else? Minimum wage increase supporters believe that a low-income individual should be able to purchase the products in which they help to produce or services they help to provide.
If one household had all the income then it would be one (complete inequality). Inequality in economics encourages individuals to work more. The potential to earn higher incomes produces an incentive for workers to work longer and harder, however, workers will have to give up leisure time in order to gain more work. This will only occur when the extra income is more valuable than leisure time. Output will then be increased, and will boost the economy.
Dan Price, CEO of Gravity Payments, decided to raise the salary of his employees to at least 70.000 USD per year. To reach this objective, he cut his own salary by 90 per cent. I think a great leader should be able to inspire their followers and you can only do that if there is mutual admiration and empathy. I believe his acts should be copied around the world and become a new trend. I believe that many talented professional would love to work for Dan Price, not only because of the larger salary he guarantees to pay, but manly because of his approach to a problem that affects the corporate world: payment inequalities.
This leads to those businesses expanding due to more demand, and if more people are spending money the currency will become healthier, meaning a better UK economy. This is why I believe the Olympics benefitted the UK economy. However the UK's national debt is currently $1.04 trillion, or 66 per cent of total GDP. The estimated cost of hosting the Olympics is $9.3 billion. So even if the current status of the UK’s economy is a recession the government decides that hosting the Olympics would save the UK’s economy and save them from the recession.