Wealthy people have a higher income and consequently spend less of each marginal dollar, which caused the economic growth to slow. Economic inequality is also one of the reasons of the Great Depression that occurred in the United States in August 1929. The Great Depression period was when the country first went into an economic recession. This period caused massive unemployment and an economic downturned. Income inequality can also cause a lower demand.
If someone wants to make more money they should alter careers to a more difficult job that will pay more money. The concept that the National minimum wage needs to be elevated to $15 an hour hasn’t been completely considered because it would cause inflation for the economy; therefore, the lower class would still be functioning in poverty. A minimum wage job is low paying because it requires low skill; therefore the
The Fight on Minimum Wage Minimum wage. The lowest amount of money regulated by the government in which businesses must pay their employees. Minimum wage is slowly on the rise, with dramatic proposals in the last few months. However the raise in minimum wage could cause great harm to the United States economy. The minimum wage should not be raised because it would increase the price for the consumer, it could harm the small businesses of America, and it could cause millions of minimum wage workers to be laid off.
This caused a decrease in inequality pay but not for income. This simply meant the rich kept getting rich while the poor stayed poor (Hodgson 100-101). In addition, with technology advancement the need for experienced professionals increased. The type
Neoliberalism is the main cause of the difference between the rich and the poor in the states. It expanded the market efficiency by competitions between individuals, raised a gap between the rich and the poor. Rich people are becoming much richer based on their original properties while poor people are becoming poorer and suffer great economic problems in their lives. This does not only happen between individuals but also between companies. The unemployment rate increased because of neoliberalism.
01 Mar. 2016. 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.
At the same time, the problem of unemployment also existed. Actually, unemployment remained high in the twenties. Although the government had policies to take income tax in order to balance the income between the rich and the poor, the actual income of the big companies were much more than what they pay for tax. The effort made by government did not help workers effectively. After the Great Depression, the New Deal programs benefited people who suffered from inequality a lot.
Without the crutch of illegal immigrants holding us back, our U.S. economy can prosper more than ever. Due to the current economic slowdown, labor demands had been reduced and has forced many out of work. Due to the large income of unskilled workers has allowed employers to give out low wages and actually allow there to be horrible working conditions. There seems to be a solution to this. By reducing low-skill immigration, we can strengthen the labor market and as well as increase wages along with them for the American people.
Unemployment will drive someone to commit crimes as they are unable to afford their daily expenses. People who are unemployed tend to perform more on property crimes such as burglary than violence crime. The higher crime rate will cause local and foreign investors alike to think twice on investing their capital in the country and thus create recession in the national economy. The diagram below shows that the relationship between unemployment and crime rate in Malaysia. Furthermore, unemployment may affect one’s mental health indirectly.
Companies, especially manufacturers, will turn toward automated replacements (Karsten, and West). These replacements will cost more overhead, but since they do not need to be paid, company revenue will increase. This is the worst result of a wage increase, as people will lose far more jobs than