Satoria Mckenzy Principals of Economics (Ref # 380267) Spring 2013 The Full Economic Impact of an Increase in the Minimum Wage Where minimum began - The history of minimum wage, what is minimum wage, the laws of minimum wage. The minimum wage has a strong social appeal, rooted in concern about the ability of markets to provide income equity for the least able members of the work force. For some people, the obvious solution to this concern is to redefine the wage structure politically to achieve a socially preferable distribution of income. Thus, minimum wage laws have usually been judged against the criterion of reducing poverty. Statutory minimum wages were also proposed as a way to control the proliferation of manufacturing industries.
As the demand for one product decreases it can cause a chain reaction lowering the demand for products needed to produce the first product. This cycle will continue until the demand for manufactures goods increased and its citizen’s put more capital back into the economy. This theory is true for any reason that people stop buying goods, if the demand goes down so does the supply and the money spent on the supply. In effort to stabilize an economy that is stuck in the decreasing demand and supply cycle the government should increase spending and find ways to increase individual spending across the country. As the capital is put back into the economy the demand for supplies will go up.
Lauren Walker The debates held over aspects of the economy, especially minimum wage, are too numerous to count. The question these days is whether the government should raise the minimum wage or not. To be honest, I believe our country would be better off without a minimum wage, and let businesses decide for themselves what to pay their employers. There are several reasons to be against this claim, but there a subsequent reasons for it, reasons that define a stable economy. Having a minimum wage in our country limits the efficiency of businesses, limits the availability of jobs to citizens because of illegal immigrants, and even drives some people out of business.
The ability to tap into the global labor market will make the company more competitive by being able to offer competitive prices on products due to lower overhead cost associated with the offset in the labor cost. Attracting employees to join the company is the better option unless there is a management position that requires exceptional talent to fill the position. Relocation of prospective employees can be costly to the company and there is no guarantee that they will be long term employees of the company. With the company's plans for expansion I would recommend overstaffing. This will allow the company to stock pile talent for future
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
Even though raising the minimum wage may benefit people, it will hurt more. Cons to keeping minimum wage the same- Economic Stimulus: Raising the minimum wage means minimum wage workers have more money to spend which means more money goes throughout the economy. More opportunity for jobs: If these minimum wage employees are spending more, than businesses are earning more and need to hire more employees to keep up with the increased sales from the minimum wage employees who are buying more. Reduced Expense for Social Programs: People surviving at minimum
Therefore, understanding exactly how monetary policies will affect the economy is extremely important. Monetary policies generally will raise or lower interest rates, which will ultimately affect individuals and business demand for goods and services. Unfortunately, many individuals do not understand the entire concept surrounding the Federal Reserve real interest rate. For example, any magnitude of decreasing the real rates will lower the cost of borrowing; this will increase investment spending, and influence individuals to buy durable goods. These items may consist of automotive, recreational vehicle, homes, and higher educational opportunities.
I chose this topic because it is a major issue in today’s economy. Many people are for raising the minimum wage. On the other hand, there are those who reject the idea of raising minimum wage. The suggested price to raise the minimum wage is ten dollars, but would that be enough to satisfy today’s economic living standards?
As a presidential candidate of the United States, I will bring back those companies and re-institute a stronger infrastructure that will make more costly to do business in the United States of America. This will build more jobs, and lower the unemployment rate, and at the same time it will re-establish our original foundation as an industrial power. In support of our economic restructuring, while doing business with foreign countries on imports and exports, we will raise the tax to lower the deficit so it is less of a burden for the American public. By raising the tax on imports and exports with foreign countries, free taxpayers in America will pay less in taxes. Also to re-establish our economy, I will institute that the United States of America to start reaping the rewards of the natural minerals from our bounty of combat scenarios.
The most profound argument in favor of raising the minimum wage circles around the economic stimulus. Raising the minimum wage would not only help thousands of workers out of government assistance programs, but would also boost spending in the local economy on services and goods. While the strongest argument against raising the minimum wage is the uncertainty of the current job market and how it will affect entry-level and new job positions not opening in the economy. When we start looking at how a change like this would help the vast majority of today’s workers, versus the uncertainty of what may or may not help the few, this poses for a weak argument. Assist with the greater good.