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.
Every country still has its laws and its borders and thus the flow of people who leave or arrive within it is an ongoing debate on the policies, the pros and cons and every other aspect of it. Immigration is something that is happening around, even faster lately because of the world economical crisis that makes people search for better opportunities. For some countries it is a new phenomenon, but in others it is the normal way and dream. People run amazed by American Dream or any other ideal living in a state that they have in mind or have heard of. Sometimes it is just the opposite, sometimes it works well.
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 .
The hourly wages of union member saver aged £12.43 in 2006, 16.6% more than the earnings of non-members (£10.66 per hour). However, for those who lost job by this action, the union failed to serve them but put them to the worst situation. How much unemployment it would create depend on the elasticity of demand. A rise in wage rates will have far less impact on employment in the industry if the labour is inelastic than if it is elastic. There will be far less cost to the union of a better condition in terms of lost membership and to its members in terms of lost employment.
Another reason for the disparity is that some economies are unable to provide substantial skills to participate actively in the global economy. Such countries provide obsolete and low valued talents such as weaving and farming, hence leaving them with limited opportunities for abundant economic growth. As a result, this has led to a misallocation of wealth as the rich constantly improve and develop themselves to enjoy the benefits of globalization, often capitalizing on the low skills and poorly paid workers. As such, in 2003, the richest fifth of the world’s population received 85% of the world’s income, while the poorest fifth received only 1.4% of the global income (Infoplease, 2005). One possible solution to ease inequality in the globalized world is through progressive taxation.
1. Analyze the benefits and costs of raising the minimum wage. There are many arguments that are in favor of raising the minimum wage, and many that are against raising the minimum wage. The biggest benefit to raising the minimum wage would be increasing the standard of living to low class families. The families spend more money and it circulates within the economy.
If there is spare capacity (negative output gap), then demand side policies can play a role in increasing economic growth. For example if we decrease interest rates, we will increase the demand in the economy as people have more money as their mortgage costs are decreased. It is the same idea with lowering taxes - this will boost demand, as people have more money to spend as less is taken away from them by the government. Aggregate demand is made up of consumption (consumer spending, Investments Government spending and Exports (minus) imports (Net exports). If anything affects these factors will result in affecting the demand.
According to FLO-CERT, their payment is 1.26 dollars per pound at the lowest, which is 10 percent higher than the market price. However it is not enough to make a living. This is because farmers need to pay fees for fair trade, such as Application Fee, and Initial Certification Fee. Moreover, even their children are obliged to work. This means farmers are so poor that they cannot live without their children’s working.
The Effects of Outsourcing on the Economy In recent years, outsourcing has become an increasingly popular alternative for some of the largest corporations in North America, who are looking for inexpensive ways of lowering overall costs. Outsourcing, which is the relocation of jobs to other foreign countries, has become a controversial new way of doing business. In considering the pros and cons of outsourcing, we have to ask some key questions: Who is benefiting for outsourcing? What types of jobs are being outsourced? What effect does outsourcing have on Americans?
It also states, despite the Gross Domestic Product (GDP) is a crude way of gauging, the GDP or National Income of the country is escalating, it implies that the country is experiencing an economic growth which in fact is a positive indication. It was also stated in the article that, despite having a good economic growth, poorer nations are likely to be more in a difficult position and unmanageable than the wealthier ones because of the unavailability of resources to maintain and develop the society and the environment in good physical conditions, and also health and safety measures. For an example, people don’t have sufficient