There are still many people who criticize and oppose the raising the minimum wage. Many believe that increasing the minimum wage would maximize the unemployment rate when in reality it would actually create more job opportunities. This is because increasing the minimum wage will require high relative price for unskilled labor which concludes that firms will have a high demand for skilled labor. The increase of minimum wage increases earnings and reduces
According to Keynes, why might deflation create problems for an economy? ▪ In expectation of increased spending, too many entrepreneurs would begin businesses and most would fail. ▪ The cost of repricing goods would increase costs, and therefore reduce profits, for businesses and they would cut production. ▪ People would drop out of unions because unions would become ineffective at keeping wages of members high. ▪ Consumers might expect prices to fall further and cut back consumption now.
A more polite title for outsourcing has been called “transformational outsourcing” (Moyers). Large businesses are aware that the outcome of offshoring is “harsh and deep” and “without doubt, big layoffs often accompany big outsourcing deals” (Bloomberg). Transformational outsourcing takes the interest of corporate growth and begins “making better use of skilled U.S. staff and even jobs creation in the US, not just cheap wages abroad” (Bloomberg). These jobs created in the U.S., by outsourcing, cannot possibly equal or surpass the number of jobs lost or the number of families’ impacted by the amount of individuals the inevitable layoffs will ultimately touch. The business and foreign countries are the only benefactors in offshoring, our unemployment rate and economic status provide the obvious
The fear of having lower SPH forced employees to make the non selling hours off the record and this resulted in losses for the employees, in both, monetary as well as recognition of extra efforts work. The main cause of this problem is the incentive for the sellers. It causes employees to work off the clock in order to increase their SPH. Another important problem that the employees of Nordstrom confront is the peer pressure. Every employee want be in the shifts that had maximum sales to increase their sales-per-hour, so there was a lot of competition.
The works left by resigned employees would be distributed to the remaining staffs, and they would be burdened by the additional job.This can make them have much pressure and want to leave the workplace more and more. Thus, number of turnover will increase even more badly. * Affect operational efficiency: the organization’s operation is heavily relied on part-time workers, so it is essential to reduce its turnover. When there are not all of them, the operation process will become worst due to insufficient workers. Moreover, when they leave, the organization needs to hire new inexperienced staffs with highly paid and full benefits to fill the responsibilities, this adds up to dollars and cents.
The FED monetary policy affects directly the cost and availability of money and credit; it also affects the demand and availability of labor. For example if a company is having a hard time keeping up due to the economic recession, and is getting harder for the company or individual to get credit due to changes on the policy of the FED, this will force the company to either lay off workers and if that does not help the company keep up, it might need to shut down. When a local company shuts down, not only is affecting labor but also production of a good or a service, giving space to external companies to come in or forcing the entry of a similar product form anther country. If the second one happens then we will be feeding someone else’s economy and not our own. But the FED can also help in a positive way, for example by keeping inflation at low, consumers and businesses don’t have to worry about high inflation.
Yolanda Scott Business Economics GM 545 Spring 2013 YolandaAScott@Yahoo.com Exercise 1: Chapter 16 Question 5 Frictional unemployment is one type of unemployment and occurs when people move or change jobs. Individuals taking their first job tend to have higher than average rate of turnover. Settling into to a long-term job can be difficult. This type of unemployment is a choice on the part of the individual. Frictional unemployment is necessary to promote effective placement of workers to jobs.
It is frustrating to see how much of a trade off the circle of life is having to sacrifice people’s income in order to get a greater result on a business. Finally, as a result of a so controversial topic I supported, support, and will support the minimum wage. The bad economy that we face today in the country is so depressing that it is not even guarantee if there will be more employment with or without minimum wage. Every day the unemployment increases, inflation increases, poverty increases, crime increases, etc. Moreover, with a minimum wage there is a big portion of the population of the country unemployed, now I think what it will be if there is not a set minimum wage.
Why do immigrants want to move? Jobs are getting really tough to find, a reason is of all the immigrants moving to the United States, that means higher poverty percentages. Immigrants are found everywhere in the U.S., this is causing chaos in all parts of our country. Cheap labor from immigrants is another factor to our economy. The cheap labor of immigrants put us at a disadvantage.
One of the sectors where Canadians are still feeling the pressure is employment. The U.S stock market crash has been important for many reasons, the most important between them being the damage on wealth. Estimates differ on exactly how much citizens, corporations lost, but most figures are around the tens of trillions mark. These losses have not only been “colossal, but by dropping the worth of investments, they've made an increased risk and higher borrowing costs for businesses, which will affect their profit margins and ability to hire and keep employees for future years” (eHow.com, p. 1). The American market crash is being felt worldwide.