The second fallacy that was enlightening was how minimum wage works. In this crazy year before the next presidential election, minimum wage has become a hot button issue. The problem with politics is that no one ever explains the economics of minimum wage. They just throw out policy ideas without actually informing the voting public on how they came to a conclusion. After learning about supply and demand of work force, it finally cleared up all the misinformation that I have heard. The greatest thing is that all the current candidates have not purposed a solution that was equal to what would actually solve the minimum wage issue. We learned that minimum wage is a government policy the artificially keeps wages higher than the market equilibrium…
The argument rather or not the minim wage should be raised rather or not if it will effect furtue jobs and if employers can afford to pay when you look at the economic status of people tha work in the fast food industry and hoe it will affect them…
In his article “ Raising minimum wage won’t lower poverty”( Saltsman, 2011) discussed that raising the minimum wage may contribute to reducing the incidence of poverty at the same time may increase the incidence of poverty. Although raising the minimum wage contribute to the economic development and create many jobs and thus reduce unemployment. However, a lot of studies have shown that all of these pros of the lifting of the minimum wage will turn into cons by reducing the employment rate. After that , he mentioned the need to find regulations to imposing monthly salaries and hiring a lot of people instead of the consequences associated with the minimum wage.…
All these articles mentioned above in my research focuses on both the benefit and drawback of minimum wage hike. We saw many voters want the minimum wage to go up, so that they can live a better life. Many other articles also show that in the long term its effect would be devastating. Minimum wage has both good and bad effects. We have to take into account the worker that works for minimum wage. They barely have anything left after all the tax money is deducted. It’s hard to maintain a family when someone works for that little money. We have also seen some solutions to minimum wage problems. For example: People are struggling to survive with the minimum wage we have now in many states. Minimum wage hike is necessary for those cities that have…
Wage problem is an important topic that is related to sociology and economics and it is also an important part that ordinary people are close interested. As the currencies performance of the value of labor, wage is the main source of the workers’ life, maintaining the survival and development of every worker and their family members. However, it is also the material basis for social stability. The minimum wage in the form of a national law to impose an important guarantee for low-income groups of workers, most of the world market economy countries have established this system. There are some theoretical models and theoretical research achievements of several minimum wage systems. Also analyzed from both positive and negative economic effects…
Does increasing the price of goods just to raise minimum wage sound like a good idea? There is debate whether the minimum wage should be raised. Everyone probably has a different take on the idea of this. It wont actually decrease poverty, which is why the whole thing is being brought up; because people assume it, will. My point is that the minimum wage should not be raised.…
Some people believe that raising minimum wage will help with economic growth, while others believe that minimum wage would do the opposite and actually force the manager to lay off many employees and raise unemployment levels. After researching both sides of this argument I believe that minimum wage should not be raised because after the price is higher, the company will not have enough money to pay all their employees and would have to make sacrifices such as laying off employees and maybe replacing them with machines so they don't have to pay them. If the minimum wage is raised many bad things could happen because of it.…
According to The Negative Effects of Minimum Wage Laws by Mark Wilson 49 percent of minimum wage workers are people under 24 years old. The majority of workers in this group live in families that overall make at least twice the poverty level. The other 51 percent are people 25 or older, but even within this statistic there are significant number who work part-time out of their own volition.…
For those who are paid minimum wage, everyday living is a struggle. Minimum wage is the smallest amount of money that a boss can legally pay their employee. As of now, the federal minimum wage is $7.25 per hour. When people are paid minimum wage they can’t live comfortably. Raising the federal minimum wage is imperative, even though some may think differently. If the minimum wage was increased, people would be able to earn a living wage standard, and avoid poverty; however, some would argue that by increasing the minimum wage would negatively impact the economy.…
Caution! This story is not to make you go to sleep it is for you to understand about minimum wage. Minimum wage should be raised because some people need the money. Minimum wage was originally 25 cents an hour, which works out to about $4 per hour in today’s money. That minimum wage was introduced as part of the Fair labor Standards Act. The first federal minimum wage laws were passed in America in 1938. Minimum wage should be raised because of crime, medical, and financial reasons…
The minimum wage in the United States of America sets the standard of living for all of its citizens by placing a price floor on what amount is acceptable to pay a person for typically unskilled labor. Minimum wage can be traced back to Fair Labor Standard Act in 1938. It was 60-75 cents per hour at the time. However, it has been revised upward due to inflation and pressure from trade unions and interest groups. Interest group argue that raising the minimum wage is a central tool in reducing poverty among unskilled workers in the US. Stigler (1946) argued that minimum wage legislation can be an instrumental tool in eradicating absolute poverty if it combined with other policy measures that are intended to create…
Stereotypically: high school/college dropouts. Jobs that receive minimum wage are for people who are not skilled enough to get a better job. The people who work for minimum wage are typically those who do not try their best in school. If they had skill then they would have been hired for a well paying job rather than minimum wage. This quote mainly says that even people who graduate with a bachelors degree end up working in the minimum wage field, so what happens to people who haven't got a degree? Well they usually tend on working for minimum wage. "7.9 percent of workers earning at or below the minimum wage have at most a bachelors degree. That said, only a very small share of college graduates overall actually wind up in minimum wage jobs" (Rampell,…
Walmart increased their minimum wage to $9 an hour. This caused a decline in earnings by 10%. Walmart’s prediction was that next year the decline would go up to 6%-12% in earnings per share. (Puzder 2015 par. 3) Walmart lost profit because they could not have a wage increase to $9 an hour and raise prices as well. When profits go down, it makes jobs less valuable and can lead to owners getting rid of positions. (Puzder 2015 par. 13) An increase in minimum wage will not be worth the trouble. However, minimum wage should be raised because people need to feel like they have a better job security and with an increase in minimum wage, people can put their financial worries behind. This article only talks about Walmart’s struggle with having a minimum wage increase. One company’s struggle is not a reliable outcome of the whole country having a $15 minimum wage increase.…
Shumlin, Peter, and Dan Malloy. "No Brainer: Three Reasons Why a $10.10 Minimum Wage Is Good for America." Www.cnn.com. N.p., 5 Mar. 2014. Web. 5 Aug.…
There has been a lot of discussion regarding the increase of minimum wage across the nation. Currently, the wage is set at a low amount of $7.25 an hour. In today’s society it is almost impossible to live on only an income of $7.25 an hour especially for those who are raising a family. In President Obama’s 2013 State of the Union Address, the president proposed to raise the minimum wage to 9 dollars by the year 2015 (Luhby). A higher minimum wage would help people living in poverty by providing better means of financial stability, and it would also improve the chances of those people trying to escape poverty stricken living conditions. Another bonus to increasing the minimum wage is that it could potentially…