This makes me wonder, is the minimum wage really high enough? Even though everyone would want to say no to this question I am going to have to say its fine where it’s at right now. People don’t normally look at the big picture of something they think is so simple. Most of us would just say raise it a little so that low income americans won’t have to struggle so much. It may not surprise people but, it’s not only teenagers that work at these minimum wage paying jobs, there are also many adults that are trying to make a living and are forced to work minimum wage jobs.
Teresa Graham English 111-0DJ Oct. 19, 2011 Teresa Graham English 111-0DJ Oct. 19, 2011 Working but Still Living in Poverty Many Americans work full time jobs but are living in poverty because of the recession, rising food cost, and government cuts. These situations are making it hard for Americans to make it in everyday life. They have to even sometimes beg for food for their families. So many people living in the United States have full-time jobs but the pay is minimum wage. With the economy in the shape it is, it makes those full-time jobs seem like only part-time jobs.
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 .
Supporters argue that it is unfair that people can work hard, and put in a 40 hour work week, but still not make enough to support their families. Critics of the wage increase say that raising minimum wage would force employers to fire employees, lower their hours, or used automated machines rather than human workers. Some critics also contend that the jobs that pay minimum wage do not require skill, are for uneducated workers, and are not meant to support a
It also ensures that he can put a high quality product on the market at a relatively low price. On the contrary, when the government requires that workers be paid more, businesses are forced to make adjustments in other areas to offset the added costs, such as reducing work hours, cutting benefits, hiring fewer people and charging higher prices. Naive lawmakers tend to believe, or at
There is a failure to realise that long term better economic welfare also means general higher standards of living, as people have enough money to buy everything they need and some of what they want, competition is rife so drives quality up and prices down, and the government are able to take in more taxes from firms who are much healthier financially. This mass employment may lead to more jobs, but the workers themselves or the way they’re used is hugely inefficient. Another reason that labour production in the UK is so low is the lack of competition. There is a strong body of evidence that competition enhances productivity. So, with a lack of one there is a lack of the other.
Even though the prices will lower of time, companies will take advantage of the recession, knowing that consumers still require their goods, no matter if it falls outside their budget or not. It is the government and consumer’s responsibility to overcome the “stickiness” of the prices via certain stimulations. Essentially the government will directly, or indirectly, create opportunities for work for its unemployed citizens, therefore increasing consumer incomes to a point where they will match a compromise price level. This, in turn, will cause the demand for goods to go up which will decrease the price temporarily. The economy is not run by a single entity, which means that it is the individual or individuals that are driving our economy.
Therefore two objectives have been met. However, the diagram also shows a conflict. With higher AD there is also demand pull inflation.The extent of any economic growth depends on the elasticity of the AS curve. If there is a small output gap and a more inelastic AS curve then the impact on economic growth will be smaller but there will be more inflation. This is unlikely to be the case in the UK at the moment as low interest rates and a large budget deficit has not cause significant inflation.
That is why, many of them are tempted by higher wages in the West. Secondly, people who choose going abroad to work are joined by their families after some time. They are of hope that in a new country there will be better opportunities for education and work, life would be simpler and easier and the standard of living will rise. On the other hand, leaving a country by highly-educated and skilled workers can have a negative impact on our country's economony by weakening it. The rate of unemployment will grow which means fewer hands to work and not proper development of any branches of industry.
In other words, the peaks and troughs in a leading variable occur before the corresponding peaks and troughs in the business cycle. A lagging variable is one whose peaks are troughs tend to occur later than the corresponding peaks and troughs in the business cycle. Unemployment is a key-lagging variable, as the economy is doing badly or companies are expecting a downturn in the economy, the unemployment rate increases accordingly. Firm tend not to hire workers until they know that the economy has picked up and that this recovery is stable and that they are fairly sure that it will be an ongoing thing. So if the economy picks up firms will tend to lag a little bit in hiring workers at least permanent workers.