The main “common sense” argument is that by imposing minimum wages, one artificially raises the price of labour way from its “market-clearing” level and higher unemployment results-and the first to lose their jobs will be the least-skilled workers (city press;2014/11/25). The national minimum wage is a step towards an alternative growth path, in other words wages must be set to target productivity and efficiency. But it must be accompanied by other alternatives; such as industrial policy that sees that South Africa create jobs in sectors that can sustain moderately higher wages, and grow sectors that can benefit from, and contribute to, increased domestic demand (city press;2014/11/25). However national minimum wages promote equality, combat poverty and support economic development e.g. in Brazil during Lula’s tenure as president, the statutory minimum wage rose
Some of the arguments for raising the minimum wage that people tend to make are that it would increase economic activity and spur job growth, reduce poverty, and also would allow people to afford everyday essentials. On the flip side of the argument, ProCon writes that some of the disadvantages of raising the minimum wage would be that it would raise
There are a lot of potential benefits for an increase in minimum wage and on the surface it’s hard to see why you wouldn’t want to increase the wage. One of the clearest to see is that an increase to the minimum wage will also increase the spending for each household during the following years. So it works to help stimulate the economy in whatever area you increase the minimum wage. Along those same lines increasing the minimum wage will lead to a decrease in poverty as well. With the decrease in poverty you will also see a decrease in government spending on welfare items because the individuals receiving the higher wage in theory will be able to pay for these services/welfare items without assistance.
The increase in the value of money that is to be converted into capital cannot take place in the money itself, nor can it originate in the purchase, is not different from its value. Marx’s great insight was that the source of surplus value lies in the difference between the value of labour-power (wages) and the value created in the course of the working day. Labour is the source of surplus value such as the source of all
With the increase in living costs, people are demanding that they receive a higher minimum pay to cover these expenses. In his article “Millennial Thoughts: Minimum wage and my take,” Will Perkins offers his opinion on minimum wage. There are many sides to the debate of whether to increase or not to increase minimum wage. Perkins, in his article “Millennial Thoughts: Minimum wage and my take,” discusses the controversial issue of raising minimum wage. He emphasizes that people who work full-time should “earn a livable wage.” In addition, he feels that it should not matter where you work, as long as you are providing people with a productive service, your hourly pay should be increased to where you can live reasonably.
Crazy Wage Mike Durant once said, “Making it more expensive to create new jobs is a perfect way to guarantee fewer of them.” The recent, “Raise the Wage” campaigns have sparked an interest in many low-wage workers, however those who support this initiative are unaware of the economic problems that will arise if this is successful. Several cities have already raised their minimum wages and some, like Seattle, are raising it as high as $15 per hour. Currently, supporters of this campaign argue that this raise should be implemented federally. However, doing so will have broad and negative financial implications. Ever since the Great Depression, the minimum wage has been in effect — in order to reduce poverty and solidify that employees are paid a reasonable sum.
Along with rising income inequality and high incidence of a low-wage job, policymakers were concerned with its social policies and explore ways to tweak the social safety nets to limit low-wage work. Henceforth, the policy challenge is to ensure that any tweaking of the social safety nets has to be done in the way that maximises work incentives, upward mobility and dignity (Poh, 2007; Yeoh,
Along these lines, unemployment may decrease, as this has different favorable circumstances, for example, lower government using on profits and less social issues. However, this phenomenon includes a number of different expenses. Firstly, if economic growth is unsustainable and is higher than the long run pattern rate, inflations are liable to be seen. An increase in economic growth could prompt an equalization of issued installments. In case the expanded customer expenditure causes further development, there will be an increase in the import sector.
Bourgeoisie the ruling class, exploits the proletariat. Capitalism is a process whereby "making money", becomes the dominant industry. Consumerism and financialization practices are a means to sustain the accumulation and flow of capital. The socialist mode of production that emerges when the accumulation of capital is no longer sustainable due to falling rates of profit in real production, and social conflict arising from the contradictions between the level of technology and automation in the economy with the capitalist form of social organization. Karl Marx made a distinction between and "upper-stage communism", and “lower stage communism" with the latter usually being called
That someone working forty hours a work could be so securely bound by poverty is unbelievable and unacceptable. Such scenarios, which afflict millions and millions of people, appear to violate the so-called “social contract” of the American Dream (Source 2), which posits that working hard guarantees a comfortable life with decent housing and basic necessities. Such a fancy is belied by the harsh reality of the minimum wage. Even progressive attempts to elevate the national minimum wage to $10.10 leave earners with a hourly salary with buying power “lower than what” $1.60 was worth in 1968 (Source 4). Here, the minimum wage is actually working against its goal; rather than providing a livable baseline wage to subsist upon, the minimum wage standard is being used as a lever for exploitation, with employers steadfastly refusing to pay much more than the merest amount legal.
The effects of structural changes in the economy and wage competition from foreign workers were already noticeable over a quarter of a century ago. See Abner J. Mikva, The Changing Role of the Wagner Act in the American Labor Movement, 38 STAN. L. REV. 1131-–32 (1986). Bednarek, supra note 246, at 217 (stating that structural changes resulting from globalization usher in a more flexible workforce with reduced labor regulations and costs that ultimately devalue labor).
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
What are the real numbers regarding households in poverty in the United States and what is the best way to help those people and families out of poverty so they can stay out? Should creating good paying job while upgrading our infrastructure be part of the plan to reduce poverty? 7. After I have wrestled with the ideas in these two texts, what are my current views on this issue. It seems that Surowiecki is writing more about minimum wage and laying blame for the situation as it is now.