Minimum Wage Argument Analysis

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Conservative economists view the minimum wage argument as a series of points on a chart. If labour costs go by x, profits will decrease by y. The reason this point fails is that workers are not robots who react the same to inputs and outputs. They are humans with feelings and emotions are reacting to changes in their environment differently. That is the heart of the liberal perspective on increasing the minimum wage and paying employees more will not just help workers but business owners and the population at large. This is so for several reasons. First, paying workers a higher salary is going to increase the productivity of the workers. This increased productivity and improved customer service will generate more in revenue than the increase in wages. Secondly, the reduction …show more content…

Increase pay =increase productivity. In 2015, the New York Times reported on the situation at Walmart, one of the worlds biggest corporations and employer of countless minimum wage employees. Walmart was struggling, and shoppers were understandably disappointed in the inadequate service provided to them. Customers complained of dirty bathrooms, empty shelves, endless checkout lines and impossible-to-find employees. As customer service is essential to the success of any business, this had a significantly noticeable effect on Walmart 's bottom line. Walmart found that only 16 percent of stores were meeting the company’s customer service goals which lead to sales at stores falling for five straight quarters; the company revenue fell in 2015 for the first time in Walmart’s 45 year history as a publicly traded company. Determined to reduce this problem, the management staff at Walmart came up with an idea entirely out of the norm for a business staffed by a low-skilled workforce. The irony is this is a company famous for squeezing pennies so successfully that labor groups accuse it of depressing wages across the American economy. As an efficient,

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