Businesses often pay individuals a wage based on current market standards. Free-market economies usually dictate specific wages for various jobs. Governments attempting to subvert market prices can reduce the demand for new workers due to a high minimum wage. Individuals can face a few negative effects from minimum wage laws. Minimum wage increases an individual annual salary, bumping the employee into a higher marginal tax bracket.
Different teachers would have to hired to teach students to speak English. Other costs include increased racial tensions and the risk of cultures assimilating to one another and not retaining their original identity. If Americans become older then less people would be to work. Because of this, they would require aid from programs like Social Security, meaning younger people who are working would have to pay more taxes. The benefit of this would that if less people are working then it would not be hard to find a job.
When companies can produce more due to demand they are able to hire more workers, which can lower the unemployment rate. Lowering the unemployment rate will provide more income tax revenue to the government and fewer citizens taking unemployment benefits. Conversely, when exports decrease consumers pay less money for products causing domestic profits to decline and companies are unable to maintain or increase their workforce causing the unemployment rate to
When a company requires a person to fill a job they could have an open position for they will seek the best person for the job. If this entails a certain level of education or a certain skill the company will have to assign a higher rate of pay. A job that does not require a high level of education will allow for a lower rate of pay. Even though the internally consistent compensation system can be a wonderful thing to add into any company it can pose a big challenge to the companies competitiveness. This system that is founded on the job analysis has lead to a formal structure job descriptions which is how the pay scale the company uses is put in place.
The Dirty Little Secret: Poverty In America Jane A. Easter The current reality in the United States of America is that the level of disparity between classes is growing and not in a good way. The small portion of the rich are getting richer and the number of poor is increasing creating a larger gap between the previous middle class and the lower class. The other reality is that it is a “don’t ask, don’t tell” society. Though studies, census data and other overwhelming proof is all around us, it is one of the least talked about issues. The classes by race and gender continue to have disparate realities across the country.
They argued that people 9in the lower social class had a higher population of older people and people working in dangerous industries and others are working in a more traditionally will be expected to have higher levels of illness than the more younger, prosperous working in call centres offices and other service industries. This explanation suggests that it is the social class but the age structure and patterns of employment of the people in the lower social classes that really explains the differences. Furthermore recent studies have shown that even the researcher account for this bias in employment and age, they still have to find a link between higher and lower social class level of illness and the lower life
The reasoning being job lossduring the Great Recession combined with higher wages like construction, manufacturing and finance hard, also job growth has is in low-wage industries. This is not a short term trend and the government is showing that to protect its citizens from going below their standard of living, hitting poverty level, more consumers spending and protecting them from employers. The standard of living is different from whomever you may talk to. Setting a minimum wage deriving from ones standard of living has many aspects to it such as; general economic conditions, nominal gross domestic product; inflation labor supply and demand, business operating costs and the number and trend of bankruptcies. Every-one citizen needs to have minimum salary needed to maintain minimum living standard.
But others argue that the federal minimum wage adds to an increased unemployment rate among younger people and unskilled workers. Minimum wage work is often referred to as “skilled labor” and includes the completion of unwanted, minuscule tasks. Examples of jobs with
“The most obvious example lies in the education system. Upward mobility is increasingly determined my education” (Meritocracy in America, 3). With the more education you receive there will be more chances a person will make more money at a job. “The education system is increasingly stratified by social class, and poor children have a double disadvantage. They attend school with fewer resources than those of their richer contemporaries” (Meritocracy in America, 3).
Fortunately, “low-skilled immigrants usually fill gaps in American labor markets and generally enhance domestic business prospects rather than destroy jobs; this occurs because of an important phenomenon, the presence of what are known as “complementary” workers, namely those who add value to the work of others.” (Cowen, 2010) In addition to investing and starting new businesses, immigrants filled in jobs of different pay-rate and skill spectrums where a high percentage of Americans do not want to fill. Many jobs that requires long set of working hours are often taken by immigrants. Americans are least likely to take low-skilled jobs and it is the immigrants who take those jobs. Thus, it is often found that majority of low-skilled jobs are taken by immigrants. With less opportunity and benefits for them, immigrants are encouraged to take any job available to them.