In source one, John Maynard Keynes is very sarcastic in his quote. When Keynes says, “wickedest of men will do the wickedest of things for the good of everyone,” he is referring to the big, rich business owners and corporations. These corporations run their businesses off of their own self-interest, and in the end, they lay many people off while saying it is for the good of the economy. Keynes’s theory is that during a recession the government needs to spend more to help the economy, during good economic times the government needs to increase taxes and save it. When the Great Depression hit in 1929, many were unable to eat and were homeless.
The main reason for siding with Hanauer is that he is thinking about how many people can get an upper hand with a wage increase. His viewpoint is the minority of those in his status as a highly successful businessman, as when businessmen are questioned about raising the minimum wage, they mostly argue for the opposition. Their arguments usually state how their businesses will suffer; such as the fact they will be losing money due to the increase they’re being forced to pay workers. This most likely won’t be the case because money is forever changing hands and giving more money to minimum
If there is not any production than the chances of workers being laid off increase based on how many people are needed for certain jobs through out the company. Either way both situations produce the same outcome which is a loss in funds for both the company and the workers. During a recession, the situation is forced on both ends. Not only does
I believe that Gov. Andrew Cuomo promise to increase minimum wage was a mistake that will in the long run hurt the economy. By increasing the minimum wage, he has benefited those who are granted to work at the firms that stay within the city limits. However he hurt the individuals who will be laid off due to increase in utility cost. Raising the minimum wage forces firm owners to either fire employees, increase consumer prices, or cut the hours of operation.
According to Don’t Raise Minimum Wage written by Sean McGarvey, by raising the minimum wage less jobs will become available to laborers causing an inflation in prices to buyers. If the wages increase large corporations such as McDonalds and Walmart will lay off the majority of their workers in order to pay for the other employees raise. The employees that get laid off are often the ones that are too young and inexperienced to better the company. This could prevent teens and less experienced laborers from getting jobs. These companies also could higher their prices on their products in order to pay for the raises for their employees.
It caused the company to reorganize their resources to fit a declining economy. The company had to reduce its cost by having employees working in stations where traffic decreased significantly be laid off. Competition The company faces a considerable amount of competition from other railroads as well as other method of transportation. While railroads must build and maintain their rail systems, other transportation method such as trucks are able to use public right-of-ways to conduct business and the right-of ways are built and maintain by the public. Therefore, the company had to invest more, reducing its profitability.
As unemployment increased and the Great Depression continued, President Hoover called a conference to try and find a solution to the economic crisis. He told business leaders not to lower the wages, but at the same time they did lower the wages which forced their businesses to close down and unemployment to persist. President Hoover also tried to help farmers and the businesses. In the past, the government of President Hoover was known to hold onto people’s money; however; at his urging congress provided resources to help the
Studies have shown that increasing minimum wage will not benefit Americas but will do harm to them. A statement made from a business owner says, “Many businesses cannot afford to pay their workers more money, and will be forced to close, reduce hiring, or lay off workers.” People with no work experience or even less skilled workers across America will be unemployed. This will result as a repeat in the United States history such as The Great Depression. With many citizens in America, the unemployment and crime rate has potential to increase
For instance, from the article “The effects of minimum wage” by David Neumark states that employers will try to keep away from low-skilled workers if the wage were to increase because it would cause them to be wasting money to train them; especially for students and high school graduates who are in absence of any work experience. With minimum wage increasing for the past couple of years it makes it difficult on employers who run small businesses to hire more new workers because they too are also citizens that have to pay their taxes and extra just to keep their business up and running. Such as the author Gina Kim who wrote the article “Minimum wage: helpful or harmful for small businesses” states that 85% of small businesses pay workers a bit more than the minimum to keep their workers interested in the job and they have to make profits out of their business to keep it on track. These businesses cannot innovate if the wage increases because then the labor market will pick up the prices on materials as well creating more of a problem for small business owners to keeping their company open for as long as possible and their solution would be to not hire a lot of employees. This pretty much explains the reasoning about how it will be troublesome for new fresh workers trying to just gain experience and get hard earned
Understanding that both articles had great reasoning I believe that a raise in the minimum wage can have a negative impact in our economy and that it should be something that shouldn’t be completely abolished but carefully monitored. Like stated in Minimum Wage Laws Are Immoral and Harmful, not all employees will give their full effort in the workplace because they won’t need to worry about getting a raise. The act of raising minimum wage doesn’t only affect the employers but as well as the consumers, by causing a rise in the company’s merchandise. I understand that some jobs don’t pay their employees enough, but what are the qualifications that the employees have, do they have enough experience, or a degree and have they simply demonstrated their ability’s. Keep in mind that many people just ask but don’t give to