Why Do Low Income Inequality

The fixation of wages bind the company to pay the workers the minimum amount as the government has fixed. Such situations might contribute in increasing the costs of employers thus causing them to make adjustments otherwise. For instance, the employers can choose to adjust this cost by reducing the hiring of workers, reducing the working hours, minimising the benefits and allowances and charging higher prices in return to compensate the cost incurred. A number of policy makers are on the view that companies cope with the fixation of minimum wages and increase in the minimum wages by compromising on the profits but in most of the situations, this is not the case. In order to maintain their net earnings, the business look for a number of alternatives, that includes cutting employment and making other similar decisions.

Many argue that an increase in minimum wage will help guide low skilled workers out of poverty and assist them into having a better career. That is not necessarily true, Many economists can agree that minimum wage jobs such as cashiers, host or a hostess are not jobs that meant to support a family. If anything by raising the minimum wage, it will put more people in poverty than guide them out of poverty. A raise in minimum wage will cause loss of jobs, an increase in the inflation rate, increase in

But if they raise the taxes for the upper class, it can motivate some rich people to move to another country. It also divides America. It can turn the lower class and middle class against the rich and have the rich against the poor and middle class. Two thirds of the US support higher taxes on the wealthy and a higher minimum wage as ways to narrow the wealth gap. The upper class have enough money to pay as much as they tax the lower and middle class.

The American Action Forum believes that raising the minimum wage can do more harm than good and hurt the people it’s supposed to help. Job loss in the millions would happen if the wage was raised from $7.25 to $15. People in poverty before the increase would have trouble finding jobs because companies would have to have less positions to counter the wage raise. Komlos, John. " Column: Why Raising the Minimum Wage Is Good Economics."

Americans below the poverty line are demanding for increased pay in their minimum wage jobs. Although with the increase to fifteen dollars an hour, many Americans would be left jobless pushing them farther under the poverty line increasing the wage by over half would harm the country’s economy more than improve it. Minimum wage workers want higher wages for the work they provide, but inflation, unemployment, and businesses closing will only cause more issues for Americans. The disadvantage to raising the pay for minimum wage workers is inflation.

Adolf Hitler had a role to play in ending the Great Depression. As In an effort to protect their money, many Europeans began to invest in US stocks and bonds. This allowed the US to make money without spending money, as more money entered the US without having to print more bills. American businesses were inspired to begin investing again, allowing for more money and jobs in the US. As Hitler attempted to conquer Europe, Europeans sought to protect their money in American stocks

It has been predicted by the standard model of competitive labor markets that higher minimum wage is likely to lead to loss of job among low-skilled employees (Meer and West 2015).

Also, jobs will not be replaced with robots because employers have to pay a few more dollars and hour for a worker. An increase in the minimum wage rate can and will help our economy

Inefficient policies all around the world and especially in our country are contributing to problems in the society. And the biggest problem which the world faces today is the problem of “Poverty” and “Inequality”. It is hard for one to determine whether poverty causes inequality or is it the other way around because both these problems are interrelated. Poverty is something which is caused due to transferring wealth in to the hands of a specific group and the unjust policies of the government. And inequality is discriminating a person in all spheres of life which gives a rise to sense of deprivation.

However, even Western countries are gradually losing their middle class. As a result there has been an increased number of riots and clashes. For society, poverty is a very dangerous factor that can destabilize an entire country. The Arab Spring is a great example of how revolts can start because of few job opportunities and high poverty levels. WHAT ARE CAUSES OF POVERTY?

This is a very big issue. By raising the national minimum wage, the United States may, after some time, decrease the percentage of people who are considered to be living in poverty. One political cartoon depicts the minimum wage being dictated by large businesses as opposed to having the minimum wage be

Its primary aim is to tackle poverty and improve standards of living by ensuring every worker enjoys a minimum level of income (Mark, 2012). However, some policymakers state that this policy is inefficient since it negatively affects more people than it benefits (Robert, 1974). This paper focuses on the positive and negative effects of minimum wage and whether the government should abolish

The New York Times states, “Employers do not automatically cope with a higher minimum wage by laying off workers or not hiring new ones. Instead they pay up out of savings from reduced labor turnover, by slower wage increases higher up the scale, modest price increases or other adjustments” (4). It would not make sense for businesses to raise prices for consumers because the possibility of losing sales is very real. That argument, that raising the minimum wage would hurt consumers, just furthers the negative sentiment people have towards this topic. Numerous studies have shown that employment increases from the state and federal level had an overall positive effect on employment (Whitaker et al. 631).

As we all know poverty is an element of society. In which that has been integrated in the American culture for those who are working to remove the socioeconomic spectrum of both sides. The poverty has the financial arise more on the rich, and has the poor feeling more escaped on the hardship of this lifestyle. It has been asked that, “will the poor ever be able to get away from incomes that will be hard to survive?” I think in this case

Poverty exists all around us, whether people realize it or not. Those living in poverty encounter problems that one may not understand. Children are born into poverty and are more likely to develop learning disabilities, have less parent-child interactions, and have a lower academic performance compared to those children not living in poverty (Brooks-Gunn, J., & Duncan, G. J, 1997). A major problem that is related to those living in poverty is illiteracy. Adults living in poverty tend to have higher rates of illiteracy compare to those adults not living in poverty.