In order to make a profit off of a product a company must make more than they are spending. So when it comes to spending on wages companies cannot be paying them more than their income. If companies were forced to raise the minimum wage many of them would find themselves laying off workers, especially those of the lower skilled employees. As much as a 3% reduction of low skilled workers can be projected with an increase of 10% in the minimum wage (Negative Effects). An American Apparel store in Los Angeles had to lay off 500 workers because of the recent city increase to $15 an hour (Sherk).
The unemployment rate is rising every day and the something needs to be done to stop this. Many youth are unemployed because they have just come from high school and they do not have enough work experience to get a job. Adults are more likely to be unemployed because of physical and mental health challenges. Adults also tend to be unemployed because of cyclical, structural and frictional unemployment. Unemployment also goes into hand with homelessness and panhandling, because there is not enough jobs people are ending up homeless and looking for other ways to get money.
R. Belfield and H. M. Levin (Washington, DC: Brookings Institution Press, 2007) estimates that if dropouts who completed high school attended college at rates similar to those of high school graduates, the difference would exceed $550,000.) The results of drop out for a student of high school can be severe and can have lasting social and individual and effects. High school dropouts are found to work at low paying jobs earning less than $13,000 per year. The high cost of high school dropouts is not only the problem of the individual. The cost of social services, lost wages and taxes alone is $250 million in the United States.
In previous years the United States have gone through some rough economic times. During the 1930’s the Great Depression occurred and the Great Recession occurred in 2007 and has helped shape the US into a better economy so that it does not happen again. Both events had some similarities and differences to why they occurred and how they affected the people at that When the economy falls during a recession this causes many things to happen in the as an effect. Unemployment rates rose increasingly. During the Great Depression the unemployment rates were at 25%, which is extremely high for that time, and the rates for the Great Recession was 9% which is comparable to then because there are more people in the world than there was at the time of the Great Depression.
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. As the workers earn more money, the product they provide increases in worth.
Many people against raising the minimum wage argue it would raise the unemployment rate. Many argue companies wouldn’t be able to keep the same amount if workers, and half a million jobs would be lost (Minimum wage). This is not true, the extra money in customers hands would raise the economy enough to cancel out the extra costs, and actually create more jobs. Jobs might initially be lost, but in the long run, they will recover with a vengeance. In the end, when people say raising the minimum wage would lose jobs, it is a temporary loss that will recover within a year or
In the year 2012, studies showed that “approximately 6.24 million people in the United States were unemployed” (“Who are the Unemployed?”), but the unemployment rate is still increasing. The effects of unemployment today are steadily rising, therefore draining the health of the economy nation wide. Welfare programs, minimum wage, and a lack of education lead to unemployment and therefore negatively affect the United States. Unemployment rates during the 1930s dramatically spiked due to a well known economic event that changed United States history, and the rates never returned back to a steady rate. It was the stock-market crash of October 1929 that signaled the slide into the pit.
For instance, a study published in 2009 discusses the importance of understanding the different aspects of this population in order to effectively help end youth homelessness. The study notes that are two typical forms of youth homelessness: children living in homeless families and unaccompanied youth. The first group, children living in homeless families, is essentially children who “live in families without a home” (Aratani, 2009, p. 4). Unaccompanied youth, then include those who are runaways, throwaways, and independent youth who have no contact with their family. Additionally, there is a multitude of factors that have been known to contribute to homelessness.
Research shows that schools such as Fishers High School have high graduation rates due to its curriculum, opportunity and staff of highly regarded teachers, but there 's always a percentage of students getting left behind. It’s something uncontrollable as of now, but who is this group? People with lower social status and more of the minorities than the white majority. Low income students and its correlates, such as lower education, poverty and poor health, ultimately affect our society as a whole. Inequities in wealth distribution, resource distribution and quality of life are increasing in the United States and globally.
1 reason many young adults drop out of college is an inability to juggle school and work” (Johnson). Finishing college is the most decisive forecaster of prosperity in the workforce and the inconsistency in college completion between children of rich and poor families duplicated since the late 1980s (McGlynn 55). There is many people that go to college, but because of the cost they don't get through college. The elevated costs of college cause not only students to struggle paying for college, but also to struggle financially paying for college when they are done. In many cases, after graduating, young adults who don’t find a job will become poorer, increasing the gap between the rich and the