If businesses are earning more, they will need to hire more employees to keep up with the increased sales from the minimum wage consumers who have increased the spending because they have higher earnings. This in turn causes businesses to sell more products. If a business has a jumpstart to more sales, they may discover that they need more employees, producing more job opportunities. Causing employers to recruit more employees to supply the demand of labor, which will be needed due to the increased sales. Currently, the Government provides millions of house with some type of assistance.
We should raise minimum wage read below to find out why. In america their are 564,708 homeless people in we were to raise minimum wage to try and get rid of this amount of homeless people in america. Some people argue that raising minimum wage would make worker benefits be the first to go in america. This however is not true because these companies would be able to make more money because people would have more money and they can spend some on things they want. People would have a higher work morale because they would be able to make a lot more money than before so they would be more happy to work longer hours.
Increasing the minimum wage can be a component that make the economic stability, because it is beneficial to the labor market by providing more job opportunities and also the business by raising employee performance. In the case of the minimum wage had increased, low paid jobs have higher paid, then more people are willing to work that kind of jobs. Therefore, the humble jobs or other low paid jobs can hire enough people, and provide work opportunities. In fact, increase minimum wage will not increase unemployment, and in contrast, people will have more work opportunities. It is because economist had proved that increasing the minimum wage will not affect unemployment, and also some business such as retail store will hire more people when more people are willing to buy goods.
Raising minimum wage in the United States would benefit over twenty eight million workers. Raising minimum wage would help businesses and would also give workers with minimum wage salaries more money then just enough to get by. The money these workers earn will go into businesses in and near their communities. Also the cost of living wages have increased throughout the years. With a minimum wage salary you have to work a forty hour work week without paying more than thirty percent of their income.
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
Sanctuary cities are extremely beneficial to the economy. According to University of California, Davis economist Giovanni Peri, states with higher populations of undocumented immigrants tend to have skilled workers who make more money and work more hours, resulting in increased productivity (2013). Higher wages lead to more money being put back into the economy because workers have more capital to spend. In addition, higher production rates means lower prices. This profound effect is a result of undocumented workers.
The minimum wage is a large-scale reason of poverty. The federal minimum wage should be increased because raising it would increase the economic activity and spur job growth, decrease poverty, and also improvements in productivity and economic growth have outpaced increases in the minimum wage. Increases in job growth and economic activity will happen when the minimum wage is elevated. If the minimum wage was increased it will “inject 22.1 billion net into the economy and create about 85,000 new jobs over a three year period”. (“Raising the Federal minimum Wage to $10.10 Would Lift Wages for Millions and Provide a Modest Economic Boost") Thousands of new jobs will be created and it will put billions of dollars into the economy.
Raising the minimum wage would be an excellent thing if the prices of goods and services did not go up or if they raised the minimum wage higher than they raise the prices of goods and services. Also if we raise the minimum wage business will not hire as many people because they would be dishing out more money which would increase the unemployment rate. Also benefits that are given to workers and families such as food stamps or housing would probably be limited or decrease a lot because people
At this point the benefits seem significantly more important than the costs. Sure the costs cannot be ignored but in the long run the increase in wage can improve people’s lives outweighing the costs that exist. Some of the important benefits from increasing the minimum wage would be giving a better salary to the people who depend on that money to provide and support their families. In today’s current situation the minimum wage has people living in poverty because what they earn is not enough to support them. By raising the minimum wage people can get themselves above the poverty line as “A more recent
Many people, form state legislators to various interest groups, in the United States are advocating increasing the minimum wage. There are several reasons for this, including the thought of it boosting the economy out of recession. Some other reasons are that it will improve the standard of living, boost consumer buying power, and provide a more stable and productive workforce. While these reasons are good in theory, raising minimum wage can be detrimental to small businesses and the economy. While earning more money is a positive thing, the negative of job losses are bigger.
The skilled laborers can spend longer time focusing on their job and make more money. “ From 1990 to 2007, undocumented workers increased legal workers’ pay in complementary jobs by up to 10 percent”( Davidson par.5). This is what made the economy productivity grow. Another factoring reason immigrants help is because they are paying all sorts of money to the government just like everyone else. Immigrants pay rent to the landowners which pay taxes, they pay for gas and for electricity and others.
There are many effects of raising minimum wage to the U.S. economy in both negative and positive ways. When minimum wage is increased, it is supposed to help improve the lives of the workers and their families since they will have more income. It is especially meant to help lower income families. This is great for those families, but the company and economy can suffer from this. When minimum wage increases, companies have to pay more to their workers.
The idea may sound great. The more money the more people consume. Yes, that is true if we build more jobs, But increasing the minimum wage could lead to another economic problem. If Congress raises the minimum wage to $15 an hour, the employer would be paying $18.61 an hour. The employer would be paying $15 for the minimum wage, $0.19 for unemployment insurance taxes, $1.15 in payroll taxes, and $2.21 per hour in Obamacare penalties.
Plus, it decreases the risk of inflation and lowers down prices to goods. A trade deficit mostly means that the residents living in that area are doing great and stable enough to purchase more exports. Even though the people can be economically stable, it can reduce the amount of jobs in the industry business in their own countries.