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…
As the minimum wage increases, so does inflation. If an employer has to pay higher wages, then the price of the product or service being produced will have to cost more in order to pay the employee. In return the prices of all goods and services will rise, and the person earning higher wages, makes no gain. In some instances, a pay hike would not make a livable wage, but in fact could make it worse. People who normally get tax breaks for having a low income, would now end up paying more in taxes and may actually end up making less money overall. Higher minimum wages force employers to cut back on training, which deprive low wage workers of any chance of long-term advancement, in return for a small increase in current income. Having higher wages for low-paid positions might also discourage workers from gaining new skills. In most circumstances, minimum wage workers may start off at minimum wage and then as time goes on and their skills are refined, they end up getting paid more. So while many people may start off at minimum wage, many of these people don't necessarily stay fixed at minimum wage. There are many minimum wage jobs that offer advancement…
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…
Minimum wage is not just about somebodies income. Raising it will have much greater affect on the economy. The cost of goods and housing will go up. The reason the price of those things will go up is because we still have to help cover the cost of workers. By increasing the minimum wage it will decrease ones desire to further their education.…
in lemons). Cooper has a very valid point in this statement. By raising the minimum wage, it allows people to function on their own. It allows them to feel secure about their money, more so then they did before. They feel that they have some breathing room in the situation, and don’t have to scramble for money. Yes, raising the minimum wage will not help immediately, but in the long run it will have a lasting effect on the person’s financial situation. Last year my mom received a small raise, and it didn’t really help at first, but later down the road we were able to pay off some things and get ahead. People just need that little bit of security to help them keep going in…
raising the minimum wage hurts the poor. It takes away jobs, keeps people on welfare, and encourages high-school students to drop out. Policy makers should be clear on the consequence of higher minimum wages.…
Although raising the minimum wage may cause inflation, “According to Dr. Pacitti, inflation would likely less than 1 percentage point per year in the wake of a $15 minimum wage. ‘Firms could accept lower profits to offset any inflationary impact.’” (“Real Talk: The Potential Impact of a $15 Minimum Wage") This was also supported by John Wihbey, “Overall, price increases are modest: For example, a 10% increase in the minimum wage would increase food prices by no more than 4% and overall prices by no more than 0.4%, significantly less than the minimum-wage increase.” Many people fear raising the minimum wage would hurt the economy by causing inflation however, statistics show that raising the minimum wage has little effect on inflation rates and that its profits significantly outweigh the costs. Also, even though many businesses would have to reduce the number of workers, the number of people benefited greatly exceeds the number harmed. “Under the $10.10 scenario, there would likely be a reduction of about 500,000 workers across the labor market, as businesses shed jobs, but about 16.5 million low-wage workers would see substantial gains in their earnings in an average week.” (Wihbey "Effects of Raising the Minimum Wage) Overall, as research and calculations have shown, raising the minimum wage benefits the economy and workforce more than it does harm, and immediate actions should be implemented to help the economy grow and ensure equality in the…
While people working fast food jobs are mandating 15 dollars an hour, no one addresses the consequences that can be expected from the increased wages for little to no skill jobs. If the minimum wage was increased across the board, it would force companies to overpay for labor which is not good for economy because it does not allow for efficient markets. When markets are not efficient prices of goods and services can experience negative upward and downward pressures on the prices of the factors of production. Overall, if wages were increased too high and too quickly, it would have an instant negative Impact and serious Long-term ramifications…
A main controversial issue in todays society is whether or not to raise minimum wage and how much to raise it by. There comes both benefits and consequences to raising the minimum wage price. In an article written by David Henderson titled, “ Raising the Minimum Wage Will Not Reduce Poverty” Henderson discusses the consequences to raising minimum wage and how it may affect the youth and currently employed. In another related article found on the New York Post by Jonathan M. Trugman titled, “Raising minimum wage would cost a million people their jobs” Trugman confronts, “ The American worker is grossly underpaid, by about 25 percent to 30 percent — heck, wages have been stagnant for almost a decade.” (CITE) According to both David Henderson and Jonathon M. Trugman the consequence of raising minimum wage could amount to thousands to millions of Americans loosing their jobs and becoming unemployed. Though I concede that the minimum wage price should…
The minimum wage has the ability to ruin or stabilize our economy. The government must be more cautious in its implementation of the minimum wage. The minimum wage should not be raised because it will increase inflation, take away jobs, decrease job opportunity for untrained individuals, and hurt small businesses. A rising minimum wage will result in a higher price of goods and raise inflation of our economy.…
When you increase minimum wage, it limits entry-level jobs because it causes businesses to hire fewer workers therefore just leaving even more people without a job. In one study it says that for every 10 percent increase in the minimum wage, it would affect the unemployment rates by roughly 2 percent (Raising the Minimum Wage Will Not Help The Poor). So you can see how going from 7.25$ an hour to 15$ an hour can affect that number. Not only are many workers laid off, but the ones who keep their jobs are cut back a lot on their hours to where they were making less than before they raised minimum wage. So combined with the lower working hours and many workers getting laid off you would think people would understand why not to raise it. There is also one major reason why raising minimum wage doesn’t affect people in poverty, many of your minimum wage workers aren't even in poverty. Many minimum wage workers are between the age of 16 and 24, many of these people are high schoolers or college kids trying to earn some extra money. People make the argument that there are single parents trying to make enough to support their kids and they need better wages, but what you may not know is that very very few people working a full time minimum wage job are alone and a single parent. Less than 1 in 25 minimum wage workers are single parents who work a full-time…
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…
This paper will talk about the subject of minimum wage in America. Right now it is a struggle for those who work and receive the 7-10 dollar an hour pay. With that type of income a family of three (two parents working (minimum wage) and one child) will only make $30, 160 in a year. Now we all know that you cannot do much with $30,160, but that does not mean that they deserve more than that. People deserve what they put in. That is why people who work hard tend to earn more money than people who do not. Here are three reasons for why the US should not raise the minimum wage. The minimum wage is for people who do not try hard enough in school, it will also raise the prices that we pay for, and it will also just make inflation increase at a much faster rate.…
Raising minimum wage in the United States will affect our economy because of the high rates caused by inflation. Many people are constantly complaining about the low pay they receive in their checks by the end of the week. They constantly complain about the fact that they can barely afford to pay their bills, and if…