This creates a knock-on effect wherein this spending fuels hiring at other companies, whose workers also spend. In contrast, the additional profits earned by corporations as a result abolishing the minimum wage could be invested anywhere in the world and capital gains from stock price improvements are taxed at a relatively low rate. ithout a minimum wage, there would be more Americans working, but they would not make enough money to survive. This could have a number of impacts. Many workers would exit the job market, choosing instead to rely on social assistance. Others would turn to criminal enterprise or find ways to work in the underground economy. If too many Americans earn insufficient amounts to survive, there could even be deflationary pressure as prices will need to come down to the level of these workers.
The government, when considering the issue of a minimum wage, must weigh the benefits…...
mlaWorks Cited:
Dimock, M. (2006). Maximum support for raising the minimum wage. Pew Center Research Publications. Retrieved September 20, 2011 from http://pewresearch.org/pubs/18/maximum-support-for-raising-the-minimum
Garfield, R. (1996). The case against a higher minimum wage. Joint Economic Committee Report. Retrieved September 20, 2011 from http://www.house.gov/jec/cost-gov/regs/minimum/against/against.htm
Minimum wage laws have always had a high price to pay. Essentially, there are a number of costs associated with governments implementing minimum wages on an otherwise free labor market. First, there is the issue of reconciling increased labor costs with static production profits. According to the research, "Minimum wage increases make unskilled workers more expensive relative to all other factors of production," (Gorman 2008). The increase in wages can have the negative ramification of costing more to businesses. Unfortunately, the minimum wage law often creates situations where there are less employment opportunities for the lowest socio-economic classes of mostly unskilled workers. Here, the research suggests that "Employers typically are not willing to pay a worker more than the value of the additional product that he produces," (Gorman 2008). When products cost less to make than an hourly minimum wage, this creates a situation where employers do not want to…...
mlaReferences
Gorman, Linda. (2008). Minimum wages. The Concise Encyclopedia of Economics. Library of Economics. Web. http://www.econlib.org/library/Enc/MinimumWages.html
myIndependent. (2004). The undisputed benefits of a minimum wage. The Independent. Web. http://www.independent.co.uk/opinion/leading-articles/the-undisputed-benefits-of-a-minimum-wage-549600.html
" However, the theoretical evidence that is provided in this article, to disprove other people's theory on the impact of minimum wage on the economy, seems to have the opposite effect. Statements about the, "…simplistic observation that some of the states with high minimum wages also have high unemployment rates," (http://www.epi.org/publications/entry/briefingpapers_bp150) are not completely disproved with the evidence provided to show no correlation with minimum wage and the job market. Despite trying to remove blame from the minimum wage, the coincidence of these states with the highest minimum wages that also have the lowest employment rates -- Alaska, ashington, and Oregon -- seem too much of a coincidence to ignore. If there was no link from the minimum wage to the unemployment rate, then why are so many companies outsourcing?
Many companies, big and small, are looking to make extra money by outsourcing positions in other companies that do not require…...
mlaWorks Cited
"Summers on Demand." Wall Street Journal. 15 April 2010. .
Chapman, Jeff. "Employment and the Minimum Wage." Economic Policy Institute. 11 May
2004. .
Maher, Kris. "Minimum-Wage Increase Comes at a Bad Time for Weakened Job Market."
2% of minimum wage earners are household heads and only 2.8% of low-wage earners are single parents.
If we assume that companies will even out productivity in the long run via the means above, then the largest impact will be on net employment. In many parts of the U.S., companies that employ workers at minimum wage levels are perpetually hiring - they cannot fill positions at these wage levels. The impact of the economy overall is minimal as well, because the lowest-income workers contribute little to the economy.
Ultimately, increases in the minimum wage are good for the economy. Proponents of minimum wage increases may be wrong about the advantages to the most vulnerable of wage earners, but overall such increases force companies to increase efficiency in other areas, rather than merely relying on a cheap labor pool for productivity. The worst of the workers get flushed from the workforce and replaced…...
mlaWorks Cited
Deere, Donald & Murphy, Kevin & Welch, Finis. (n.d.) Sense and Nonsense on the Minimum Wage. Cato Institute. Retrieved June 15, 2008 at http://www.cato.org/pubs/regulation/reg18n1c.html
Saxton, Jim. (1996). The Case Against a Higher Minimum Wage. Joint Economic Committee Report. Retrieved June 15, 2008 at http://www.house.gov/jec/cost-gov/regs/minimum/against/against.htm
Deere, Donald & Murphy, Kevin & Welch, Finis. (n.d.) Sense and Nonsense on the Minimum Wage. Cato Institute.
Saxton, Jim. (1996). The Case Against a Higher Minimum Wage. Joint Economic Committee Report.
Opponents have failed to take into account the demand and supply side of the argument. It is true that minimum wage legislation has increased people's purchasing power but this positive impact of the law is likely to improve economic activity in the country. This is because when people have more purchasing power naturally they can afford more goods and thus increased demand of goods leads to increased supply and this accelerates economic growth. We can understand this law better if we take into account consumer spending and its impact on the economy. In recent times, we have noticed that lack of consumer spending has speeded up the downward spiral of the economy and in its attempt to encourage people to bring more money into the market, government announced several tax cuts. Keeping this in mind, we can understand how increased purchasing power due to minimum wage law can bring positive…...
mlaSecondly, while minimum wage may not be able to improve the standard of living for every unskilled workers, still those who do manage to find a job in today's competitive market stand to benefit from this legislation because employers can no longer make them work for unreasonably low wages.
Another important argument in favor of the law deals with productivity and technological side of business and trade. It is believed that with minimum wage legislation, companies are required to make use of sophisticated technologies in order to minimize the labor needed. Prasch (1996) writes in the defense of minimum wage law in these words, "Firms faced with high wages are forced to employ more advanced equipment and eliminate "X-inefficiency" or leave the industry. The result is a more productive society as newly adopted technologies and processes are embraced by the surviving firms and their competitors... The minimum wage is one among a number of factors that has the capacity to equalize bargaining power in labor markets. As such, the minimum wage enables people to "earn a living" which is an elementary component of human dignity and social justice. Thus it becomes clear why minmum law must be kept. It is the one law that can protect the poorest section from exploitation. With hundreds of poor migrants coming into the country every year, we do need a law that would allow the poor section to not against themselves. By agreeing to work for below minimum wage, they not only hurt themselves but also others who are not willing to work at such low rates. Thus minimum wage law is a must for this country.
Prasch, Robert E., in defense of the minimum wage.. Vol. 30, Journal of Economic Issues, 06-01-1996, pp 391(7)
Minimum Wages -- Florida Labor Law
This report supports the thesis below. The minimum wage payments in the state of Florida should be upped to the $10 mark because the cost of living has gone up over the years. Ironically, there has only been a 97 cents increase in the wage since 2010. Yet the cost of living has gone up by a much higher margin. The current minimum wage stands at $8.22. This makes life hard.
Minimum Wages Set by the Federal Authorities
The movement for the living wage has been pushing for an increase in the minimum wage in both cities and at federal level. Most of the advocates for a higher minimum wage are pushing for the indexing of the same to the cost of living. Unfortunately, the movements for the increase of the minimum wage have gained little success in influencing the federal policy regarding that matter. There is…...
mlaReferences
Brinkmann, P., 2015. Lack of 2016 Wage Increase in Florida surprises some. [Online]
Available at: / [Accessed 19 May 2016].http://www.orlandosentinel.com
Colberg, M., 1960. Minimum Wage Effects on Florida's Economic Development. Journal of Law, Volume III, pp. 106-117.
Luce, S., 2012. Living Wage Policies and Campaigns: Lessons from the United States. International Journal of Labor Research, 4(1), pp. 11-26.
Economics Case
Buyers Perspective
The case focuses on how a minimum wage increase in LA will affect it and neighboring cities. From a buyers point-of-view, by increasing the minimum wage the buyers collective would have more money to spend and would consume more.
Concepts: The central concepts involved in this circumstance can be thought of in terms of income and spending. The increase in wages will give a number of buyers more buying power which will increase their demand for goods and services.
Behavior: The buyers' behavior for people earning minimum wage will be significantly impacted and their consumption will increase. It is also likely that the increased wage will attract more businesses into the local market to meet this demand. Some producers who will be attracted to the new economic conditions will be likely to enter the LA market.
Explanation: The increase in the minimum wage will provide buyers a great income which will…...
Public Policy of the Minimum Wage
Public Policy on minimum wage in the United States has shifted focus in recent years. Many in the public and in the White House have sought to raise the national minimum wage to $15 per hour. This is what many find to be a decent living wage that may help those in poverty or near poverty. The past has seen introduction of the minimum wage in the United States beginning around the Great Depression. Then, the standard minimum wage was 25 cents. In order to match the value of those 25 cents, today's minimum wage would have to be $10.
Progress has been made in the last two years with regards to increasing the minimum wage. Some states like California have already adopted legislation to gradually increase the minimum wage to $15 in the upcoming years. New York City and Seattle are not far behind. Still,…...
Beginning wage increases in industry sectors and on a smaller scale in businesses and organizations can have a beneficial effect on various parties. Businesses believe minimum wage increases may hurt them regarding profit, local economy, and potential health effects. While assumptions exist regarding these key issues, research suggests wage increases provide upticks in profit for companies, promote a positive work environment and less stress for employees, and there is minimal effect on the local economy. The idea that minimum wage increases encourages problems lacks key evidence both in large samples and in the long-term.
Economy
A common misconception is wage increases create job loss. The economy does not have to be negatively affected by minimum wage increases. For example, in an article titled: “Are minimum wage increases absorbed by small price increases?” the evidence suggests minimum wage increases has no major impact on local economy. As authors explain, San Jose became part…...
mlaReferences
Allegretto, S., & Reich, M. (2017). Are Local Minimum Wages Absorbed by Price Increases? Estimates from Internet-Based Restaurant Menus. ILR Review, 71(1), 35-63. doi:10.1177/0019793917713735Bhorat, H., Kanbur, R., & Stanwix, B. (2014). Estimating the Impact of Minimum Wages on Employment, Wages, and Non-Wage Benefits: The Case of Agriculture in South Africa. SSRN Electronic Journal, 96(5), 1402–1419. doi:10.2139/ssrn.2184248Cuong, N. V. (2013). Do Minimum Wage Increases Matter to Firm Profitability? The Case of Vietnam. Journal of International Development, 29(6), 790-804. doi:10.1002/jid.2920Hoffman, S. D. (2015). Are the Effects of Minimum Wage Increases Always Small? A Reanalysis of Sabia, Burkhauser, and Hansen. ILR Review, 69(2), 295-311. doi:10.1177/0019793915610558Horn, B., Maclean, J., & Strain, M. (2017). DO MINIMUM WAGE INCREASES INFLUENCE WORKER HEALTH? Economic Inquiry, 1. Retrieved from ftp://repec.iza.orgJardim, E., Long, M., Plotnick, R., Van Inwegen, E., Vigdor, J., & Wething, H. (2017). Minimum Wage Increases, Wages, and Low-Wage Employment: Evidence from Seattle. doi:10.3386/w23532Lynn, M., & Boone, C. (2015). Have Minimum Wage Increases Hurt the Restaurant Industry? The Evidence Says No! CENTER FOR HOSPITALITY RESEARCH REPORTS. Retrieved from Meer, J., & West, J. (2016). Effects of the Minimum Wage on Employment Dynamics. doi:10.3386/w19262https://scholarship.sha.cornell.edu
By bringing more locals into the overseas operation, the use of expats can be reduced. In addition, the cost of expats should be factored into the decision to enter a market. Major markets will still be profitable even with the presence of expats, but there are many marginal markets that may not be viable once expat costs are included (for example, where Malaysia may be profitable, adjacent Brunei may not be).
The human resources department can also reduce the value of the package offered to expats. If assignment allowances and property costs are 70% of the expat costs, then these costs should be the focus of efforts to reduce total expat costs. For example, one solution is to introduce funding at a blanket level, and then allow the expat to determine how those funds should be dispersed. This strategy fixes the amount of money that is spent on the assignment,…...
mlaWorks Cited:
Landsburg, S. (2004). The sin of wages. Slate. Retrieved September 24, 2010 from http://www.slate.com/id/2103486/
Saxton, J. (1996). The case against a higher minimum wage. Joint Economic Committee Report. Retrieved September 25, 2010 from http://www.house.gov/jec/cost-gov/regs/minimum/against/against.htm
Friedman, B. (2010). Effective strategies for expatriate cost management. Totally Expat. Retrieved September 25, 2010 from http://www.articles.totallyexpat.com/effective-strategies-for-expatriate-cost-management/
Selmer, J. (1995). Expatriate management: New ideas for international business. Westport, CT: Quorum Books.
Legal Prices: Collect information minimum wage. State purpose legal price, assess impact market labor, evaluate extent achieves purpose. List esources: Bureau Economic Analysis - http://bea.
Evaluating legal prices: The minimum wage
The modern day employee is viewed as the most valuable organizational asset and sits at the core of the company's ability to attain its overall objectives. In such a setting then, the employers compete for the best skilled and qualified employees, and the staff members benefit from higher wages and better incentives.
Nevertheless, this was not always the status of the employees. The first employers were the factory workers, who migrated from the villages to the cities in search of better lives, but were mostly confronted with exploitation on the part of the factory owners, long hours of work, insufficient pay, unsafe and unsanitary working and living conditions.
The workers eventually rioted and were met with resistance and violence on the part…...
mlaReferences:
Carneiro, F.G., Gill, I.S., De Barros, R.P., 2006, The third dimension of labor markets: demand, supply and institutions in Brazil, Nova Publishers
Morgan, L., The advantages and disadvantages of minimum wage, eHow, last accessed on July 9, 2012http://www.ehow.com/list_6637637_advantages-disadvantages-minimum-wage.html
Turner, M.D., The low-wage labor market: challenges and opportunities for economic self-sufficiency. Does the minimum wage help or hurt low-wage workers? last accessed on July 9, 2012http://aspe.hhs.gov/HSP/lwlm99/turner.htm
2012, Minimum wage, Investopedia, last accessed on July 9, 2012http://www.investopedia.com/terms/m/minimum_wage.asp#axzz206qt4g9S
Zeynep Ton's A minimum wage hike could help employers, too, in the Harvard Business eview. This article is a speculative piece about the effects of proposed minimum wage increases at the federal level. The author takes a look at companies that superior wages and benefits for their industry. The underlying theme is that this is juxtaposed against a common argument that raising the minimum wage will be universally harmful.
The common argument takes beginner's level supply and demand graphs and uses them as the basis for the claim. The basic elastic supply and demand graph shows that as the cost of a good increases, demand for that good declines. Thus, if the minimum wage increases, businesses will face higher costs, will pass those costs onto consumers, will suffer lower profits or will reduce employment, or some combination of these negative outcomes. The author here is pointing out that the world…...
mlaReferences
Ton, Z. (2014). A minimum wage hike could help employers, too. Harvard Business Review. Retrieved February 2, 2014 from http://blogs.hbr.org/2014/01/a-minimum-wage-hike-would-help-employers-too/
LA Minimum Wage
The author of this report has been asked to assess the Los Angeles minimum wage case study. Indeed, it would seem that Los Angeles is trying to raise their minimum wage to a shade above fifteen dollars an hour. They are basically trying to follow in the footsteps of Seattle, who just started doing precisely the same thing. However, Los Angeles is very different from Seattle in terms of its geography and its neighbors. As such, Los Angeles businesses have options that Seattle ones do not. While Los Angeles may think they are doing the economically sound thing, they should really rethink what they are doing, and for more than one reason.
If there is one term in the Mankiw text that leaps out at the author of this report, it would be the term equilibrium (Mankiw, 2004). This term takes on several varied and differing forms when analyzing…...
mlaReferences
California,. (2015). History of California Minimum Wage. Dir.ca.gov. Retrieved 15 May
2015, from http://www.dir.ca.gov/iwc/minimumwagehistory.htm
Mankiw, N. (2004). Essentials of economics. Mason, Ohio: Thomson/South-Western.
Title: Minimum Wage and its Impact on SocietyThe topic of minimum wages has become a very contentious and captivating issue throughout the developed world. For one, accommodative monetary and fiscal policy, as a result of COVID-19, has flooded the market with large amounts of currency, thereby depreciating the value of dollar. In addition, rapid inflation, caused by a litany of economic sources, has lowed the purchasing power of the dollar relative to other currencies around the world. Many businesses have responded by raising prices on numerous goods and services, including consumer staples, toothpaste, food, utilities, and clothing. The impact of these price increases has been far reaching as industries from retail to automobile manufacturers have been forced to raise their respective prices. Unfortunately, wages, have remained relatively stagnant over many decades, even as the cost-of-living has increased. Here, consumers are now forced to contend with higher prices, lower purchasing power…...
mlaReferences
1. Brown, C., Gilroy, C., & Kohen, A. (1982). The Effect of The Minimum Wage on Employment and Unemployment. Journal of Economic Literature, 20(2), 487–528. http://www.jstor.org/stable/2724487
2. Stigler, G. J. (2006). The Economics of Minimum Wage Legislation. The American Economic Review, 36(3), 358–365. http://www.jstor.org/stable/1801842
3. MaCurdy, T. (2015). How Effective Is the Minimum Wage at Supporting the Poor? Journal of Political Economy, 123(2), 497–545. https://doi.org/10.1086/679626
Microeconomics
In 2014, Seattle instituted a minimum wage of $15, which will be phased in over the coming couple of years (Burtless, 2014). Other cities, including Chicago and Philadelphia, are aiming to follow suit with sharp increases in their own minimum wages (Dardick & Garcia, 2014). These increases are expected to increase the standard of living among the working poor in these jurisdictions. While popular ideas with low-income workers, these plans have generally not been met with much enthusiasm by business groups (Worstall, 2014). These policies can be examined from both a macroeconomic perspective (effects on unemployment, GDP and poverty rates) and from a microeconomic perspective. This paper will focus on the latter.
The first concept is basic supply and demand. A simplistic version of supply and demand is typically utilized to argue against a $15 minimum wage. In this understanding, when the cost of labor increases, demand for labor decreases. This…...
mlaReferences
Burtless, G. (2014). Seattle's minimum wage is now $15/hr: Is that a good idea? Brookings Institute. Retrieved December 1, 2014 from http://www.brookings.edu/blogs/up-front/posts/2014/06/09-seattle-15-minimum-wage-good-idea-burtless
Dardick, H. & Garcia, M. (2014). Illinois, Chicago could be on track for separate minimum wages. Chicago Tribune. Retrieved December 1, 2014 from http://www.chicagotribune.com/news/local/politics/ct-chicago-city-council-minimum-wage-met-1202-20141201-story.html
Worstall, T. (2014). A $15 minimum wage would be a $17,500 tax on jobs. Forbes. Retrieved December 1, 2014 from http://www.forbes.com/sites/timworstall/2014/09/06/a-15-an-hour-minimum-wage-would-be-a-17500-a-year-tax-on-jobs/
There is a definite link between work, poverty, and welfare. While people may think of poverty as a problem for people who are unemployed, the reality is that most adults who live in poverty are employed. In fact, approximately 40% of homeless adults are actually employed. Therefore, solving the problem of poverty is not just about finding employment for people who live in poverty, but will require widespread social change about challenging taxpayers subsidizing employers that pay their employees less than a living wage.
If you want to write a 5-paragraph essay about the....
1) Many studies have shown that minimum wage increases have a positive impact on reducing poverty rates. By ensuring that workers earn a wage that covers their basic needs, minimum wage laws help lift low-income individuals and families out of poverty.
2) Minimum wage laws can also stimulate economic growth. When low-wage workers have more money to spend, they are more likely to consume goods and services. This increased consumer spending can boost demand, leading to job creation and supporting local businesses.
3) Implementing a minimum wage can also improve public health outcomes. Research has found that higher wages are associated with....
1. Should social media platforms be held responsible for monitoring and removing hate speech?
2. Is the death penalty an effective deterrent for violent crime?
3. Should college athletes be paid for their performance?
4. Are stricter gun control laws necessary to reduce gun violence?
5. Should the government provide free healthcare for all citizens?
6. Is climate change a result of human activity?
7. Should the minimum wage be increased to a livable wage?
8. Is affirmative action still necessary in today's society?
9. Should standardized testing be the primary measure of student achievement?
10. Is privacy in the digital age a fundamental human right?
11. Should the use....
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