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 .
Shorter Working Week Shorter working week will improve American jobs. Through the history, the United States of America has often been referred to as the “land of opportunity.” In some situations this maybe has been the case for most Americans, especially in the nineteenth century. Due to several factors, the United States has a hard time living up to the expectations of its citizens. Millions of jobs were lost during the past two years and with a record of a weak economy, every day someone is looking for a job. Whether the person is a recent graduate, a person laid-off from work, or a person that wants a different job, their casual search turns into a carefully planned search for employment.
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
That is why, many of them are tempted by higher wages in the West. Secondly, people who choose going abroad to work are joined by their families after some time. They are of hope that in a new country there will be better opportunities for education and work, life would be simpler and easier and the standard of living will rise. On the other hand, leaving a country by highly-educated and skilled workers can have a negative impact on our country's economony by weakening it. The rate of unemployment will grow which means fewer hands to work and not proper development of any branches of industry.
Developing countries also benefit as the population get access to employment and the development of new skills, leading to more money being spent helping the economy to improve infrastructure and services improving the quality of life in the country. TNCs that do well in the developing countries raise the status of the country encouraging investment from other well know transnational corporations and most importantly it will improve the country’s economy drastically as valuable export revenues will be earned. On the other hand, most developing countries do not benefit as much as developed countries do, for example, sometimes much of the employment is low paid, low skill and long hours meaning that the country does not develop economically or give the opportunity to develop their skills. Another drawback is that there has been large negative press about TNCs and the poor working conditions in which people operate in; this includes the lack of safety requirements and the long hours of working. Transnational corporations like high profit, and countries where there is less regulations, therefore they often go to countries where there is less ‘red tape’ with regard to safety leading to TNCs
A few of these include the ability to get a better paying job, the flexibility for more job opportunities that I will be qualified for, and a more stable life for me. With the failing economy having a large impact on higher paying jobs in the area we live in a college degree will help me to get a better paying job. Due to the fact that there are so many unemployed people in the area we live it is hard to find an entry level job that does not require some type of schooling after high school. Most jobs that are available to me currently with just a high school diploma are minimum wage jobs. Thus, with the cost of living rising and the constant rise in everyday essentials such as gas it is hard to live comfortably on that type of pay.
Mass production also lowered the cost of the products. The quantity of the of the products were not scarce anymore, so the seller didn’t have to sell his products at a high price in order to make a living. The United States was looked at as a world power because of this new “technique.” Mass production also allowed for more jobs to open. Factories needed many workers in order to maintain the upkeep of the flow of items. The United States was facing hard times in the jobs aspect.
It is a fact that by going to college a person will get better jobs for higher salaries. People also attend college so he/she can choose a high paying career. A person will lead a better and less stressful life if their financial status is never a problem. That would leave time for many things that could enrich a person’s life as opposed to working for ninety percent of it. Without going to college, people will make minimum wage, if he/she do make good money, it is because he/she are breaking their backs for it.
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.
If unemployment falls, less people will be claiming unemployment benefits and other similar pay-outs from the government, this will allow a lot of tax to be spent on other things, such as expanding public services further, which also leads to an increase in living standards. Another benefit of economic growth is the increase in confidence, with all these new goods and services on offer to the country, the consumer