Bernie Sanders Minimum Wage Analysis

Good Essays
Bernie Sanders, a man running for President 2016, suggested an idea that would allow the lower class “to finally make a living wage”. He suggest that we take the current national minimum wage of $7.25 per hour and turn it into $15.00 per hour. He also goes on about how millions of Americans work up to 60 hours a week but fail to earn any overtime pay. He insures that any american that works up to these lengths shall then receive overtime and thus that is why he is supporter of the Obama Administration and its overtime pay protection. On top of this, Bernie also shows that he is a voice of the people states that he is supporter of equal pay for men and women and the Employee Free Choice Act. ( The Employee Free Choice Act is an act that protects…show more content…
The wage rate would be so high employers would not be able to afford all the money they have to pay out to the workers, so they have to cut off some people. Contrasting that thought, a quote that states “increasing the minimum wage may also spur businesses to operate more efficiently and employees to work harder.”. This quote is stating that if there were less employees than the employees are going to work harder as it is technically more economically efficient that way .Yes, this is true, but they will “ have” to work harder to keep up with the same amount of output as before because 5 is more than 3 as hard as that is to picture. This also places a larger responsibility on the remaining few because now if there is a weak link then the ship is really going to sink. Plus, in the bigger picture people are losing their jobs from…show more content…
Well you only get paid $7.25 an hour so all you can afford is the Snickers amongst other things. Now say you make $15.00 an hour, which one are you going to buy? Well according to the Utility Maximizing Model a person will direct their spending to whatever gives them the most satisfaction or utility. So by doing so they decrease their spending in the product that gives off less utility. So one possible effect of raising minimum wage to $15.00 is that people will initially start spending more on the things they love because they can afford them now. So yes, more money is flowing through the economy but is it enough to balance out? Take in consideration that the Utility Maximizing Model is a Ceteris Paribus based theory so this nor fact or false, it is an
Get Access