These are the pros but there are also cons for raising the minimum wage. Raising minimum wage hurts small businesses. These businesses are in competitive markets and may not be able to afford the wage hike. Hours may have to be cut from employees or maybe even lay offs. Because of this employers may outsource their work to other people who will be more than happy to work for lower wages.
• 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.
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.
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. I am sure they would appreciate a raise, but I believe leaving the minimum wage where its at just forces adults who have little to no skills or education, to go back to school to get the knowledge they need for a career in order to have a more comfortable future. When the minimum wage is raised, businesses have to raise the price on whatever products or services they offer, to offset the loss of profits from having to pay the employees more money. With products more expensive, consumers
Minimum wage laws force an employer to pay its employees above a mandated level. On one hand, yes, this means that workers have more money in their pockets. It means they can now go out and spend money which will, in turn, stimulate the broader economy, right? Wrong! The higher wages paid by the employer have to be made up somewhere.
In addition, the company needs to increase salaries and improve benefits for some of the remaining employees. Therefore, the company is figuring out how to convey this good news and bad news to its workers. Analysis and Evaluation While Weymouth has to lay-off thousands of employees, it plans to increase salaries and improve benefits for others. On one hand, it’s necessary for the company to downsize to save the company in this tough time. On the other hand, offering a better policy for remaining workers may conflict with the cost-cutting effort, but satisfying workers can benefit company’s long-run business.
Standpoint Theory will be discussed in order to explain why the reporters deliver their stories either objectively or subjectively. Finally, I will discuss whether or not the reports were effective in swaying my opinion on the subject. Background – President Obama’s Minimum Wage Increase The minimum wage debate is one in regards to President Obama’s plan of significantly raising the minimum wage in the United States. Supporters believe that raising the minimum wage will help workers cover their living expenses more easily, as well as bring people who work full time, out of poverty. 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.
Their union deplores industrial action by the profession, but nevertheless it has meant strikes in the UK to force a reluctant government into financing better incomes in the National Health Service, and in the view of many these incomes remain inadequate. The reason is that in a capitalist society incomes depend on the market economy i.e. supply and demand. If you supply a need and are in a minority you can command a high income. In a socialist state, the government evaluates the contributions of all workers and fixes wages accordingly.
Inflation, describe as a continuous increase in prices, is arguably one of the main causes of unemployment. It is simply said that, when inflation is high, unemployment is low and when inflation is low, unemployment is high. What causes inflation is a hard nut to crack for many economists but to the common man, changes in money supply throughout the world may be a possible answer. Basically, when inflation occurs, prices of common items shoot up demanding higher wages to employees. Most companies are usually not able to cope with these demands and eventually lay off workers so as to maintain steady
Many times we often find ourselves at a job that we don’t like simply because that is what pays the bills. Extrinsic factors are important to consider when looking for a career. Now days everyone seems to be over worked and under paid. If the pay compensation was a rate higher then everyone wouldn’t mind the chaos. I believe money can’t buy you happiness, so if you are at a job were you are not happy eventually it will start to affect your work ethics.