• Introduction: Good intention may have both consequences depending on how it guided whether by error or correct decision. The best example is the minimum wage regulation which means to raise the wages to improve living conditions but actually influence many to economy. Minimum wage is the lowest hourly, daily wage of an employee. Many economists have different ideas of an in crease in minimum wage, the matter in the views on disadvantages and advantages being disputed by many advocates. 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.
The public votes but if they are not made aware of the problem, and then there will be no such changes. Such changes are not what CEO’s or the one percenters want to come to pass, for the rich want the poor to remain poor. Revolutions start by those oppressed. In conclusion, there will be the poor as there will be the rich, but as the face of the U.S. changes (tans), so will the money power
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.
There are two likely scenarios that can result from its implementation. According to one theory, introducing a minimum wage will result in a higher rate of unemployment, as employers are compelled to increase prices in order to offset higher labour costs. The resulting effects being lower sales, fewer customers, and less revenue. A common solution for employers is to decrease their labour force through layoffs and early retirement schemes. In contrast, the main
Perhaps the existence of poverty serves as an incentive, encouraging everyone to work harder than they otherwise might, to avoid becoming poor, and thereby boosting the general level of wealth. From a symbolic interactionist perspective, poverty would be recognized as symbols (or labels) given to each other. Sociologists would study the personal relationships between the impoverished. They would look at stereotypes that people have towards impoverished people. They may also look at stereotypes the impoverished have towards the wealthy.
The Unforeseen Effect of Minimum Wage On the surface, minimum wage seems like a good thing. The thinking that more money in an employee's pocket is a good thing is a no-brainer right? I'd argue no. There are different angles to look at, and even more inadvertent effects that have been realized. I'd like to steal a few minutes of your time to show you the unintended and unforeseen effects of this government interference in the private economy.
In order to counter this, government issues a minimum amount in which a business is allowed to pay their employees. The concept of minimum wage not only goes against everything it means to be a “free society”, but it is also completely illogical according to a vast majority of economists. If the government can control the real wages of millions of Americans by simply passing legislation that says so, then why stop at $9.04 per hour? Why not make it $15 per hour? Isn’t $100 per hour more compassionate to the average entry level, unskilled employee than $9.04 per hour?
Minimum wage is defined as the minimum amount employer need to pay and this amount is set by the government through legislation. If there is no minimum wage, the keen competition between workers for limited jobs would cause wage to fall until it reach the equilibrium wage, so minimum wage is set to prevent wages from falling and remain in acceptable level. Most labour markets in the developed country is affected by minimum wage, it has a large potential impact towards the economy. Hence, it is important to understand the economics effect of minimum wage to the economy. In demand and supply curve, the intersection point of demand and supply curve is the market equilibrium, where the equilibrium supply is equal to the equilibrium demand.
How Unemployment Has Affected Society Judging from the vastness of the unemployment issue, I may not be the perfect individual to discuss on the topic on “unemployment”. However, I cannot hesitate to air my views about it. In the modern economy that we find ourselves in, unemployment, simply defined as the lack of jobs, can be caused by rapid technological changes, inflation, recessions, abrupt climatic changes, overpopulation, laying off current staff workers and discrimination of the employee based on race, age, ethnicity, religion or class. Although the causes may many enough to write a book, researchers such as those in “Economy Watch” have categorized the unemployment causes into four main groups. That is, cyclical, structural, hardcore and frictional problems.
Perhaps many things could be blamed for this; economic growth is slow - it is an employer’s market that can chose to pay minimum wage for positions which are unsecure, government spending cuts, higher interest rates, perhaps even the eurozone crisis. According to a BBC reporter (BBC News, 2011), rents are going up, but because of the cap on housing benefits, recipients are unable to remain in their homes. This could result in recipients getting caught in the poverty trap; the money they save from rent is spent on transport costs to get to where your child goes to school, where the