If the minimum wage were to increase, consumers could see a rise in prices in their products. A majority of minimum wage workers are in a high competitive market, where the companies make smaller profit. In order for companies to
If they raised the minimum wage and took more money in taxes for things like social welfare i think it would help bring us out of poverty. And help many of those in poverty. Raising the minimum wage can be risky but us much needed there needs to be a way they can make it happen without making things worse. They don’t need to raise it so high it makes the prices go way up i think they just need to raise it to living wage and not poverty and keep the prices of goods the same and i think it would get more money flowing and things wouldn 't seem so expensive that is needed to live in today’s modern world. Two extra dollars an hour can go a long way and could eliminate tax deductions for things like social welfare because as we escape out of poverty less money from that would be needed to get spent and would save the government money also put more money in our pockets.
Those affected by low minimum wage laws are not only limited to low income or middle class workers but taxpayers also. If a low income worker needs government aid that has to be paid for by taxpayers. Increasing the minimum wage comes with many benefits to workers and the government such as more income means more money individuals will be able to spend and families that rely on government aid because of low wages will ideally no longer need them because of higher payment they will receive. Many democrats and supporters have pushed to raise the federal minimum wage to better reflect the current cost of living, while other states have already taken initiative and increased their own minimum wage laws. The increase of the federal minimum wage is difficult to execute because of the republican political party, they argue that increasing the minimum wage will cause job loss, a rise in prices, and less hours an employee can work.
“Raising starting wages to $15 could price americans out of work” (Sherk). We need the unemployment rate to stay down, and pricing americans out of work is not going to help. Especially the people who are struggling. If the people who are struggling are getting put out of work their going to become homeless along with a whole bunch of other people. Some people are still making more than minimum wage, depending on the job like being a personal trainer etc.
One of the cons to increasing the minimum wage is that it helps larger corporations and hurts smaller businesses, therefore, competition is decreased. The bigger companies use raising wages acts as a barrier to entry to new business entering the market and create a monopoly for larger companies who have more profits to afford the increase. An example of this is Wal-Mart, who can afford to pay employees nine dollars and twenty cents an hour but a little store such as Meijer 's who does not make as much profit would limit their hiring of new employees and would cut hours to compensate. A family store might decide that the cost of entering the market is too high to endure as they build up their clientele and develop their business they decide not
In the job market, the increase in minimum wage will cause a shortage, making it less profitable for companies to employ many workers. This will result in higher unemployment. In response to such criticisms, the government has come up with a concept called the “voluntary living wage,” which is an “attempt to encourage firms to pay higher wages” (Economics Help). A living wage is an “hourly wage rate considered the minimum level to provide the essentials of modern living” (Pettinger, 2012). To put it into simpler words, a living wage is an adjusted type of wage that takes into account the average price level of the country.
Giving people’s jobs away to machinery is also unfair to the minimum wage/low skill workers/ Many people with minimum wage/low skill jobs don’t have these jobs because it fits their potential, rather it is usually to survive in society. To get a higher than average income in the traditional fashion, a college degree is absolutely necessary. However it isn’t so cut and dry in the U.S. where tuition costs are rising by the year. Many people aren’t able to go to college because of their finances/and or family issues.
Obviously the economic setbacks and the mass loss of life at that time had a ripple effect because those affected countries took time to recover economically so it’s possible they would be stronger today if they had not suffered such losses. Also, their populations are not what they would have grown to if millions hadn’t died. One impact on today’s society is how our social order is set up today. Once serfs got a taste of freedom, could choose employers, and had a better standard of living, there was no way they would go back to the old way(Whipps, par. 8,9).
Employers may choose to lower the number of staff in order to still provide these benefits for employees, which would increase unemployment, or disband these programs yet keep their original number of employees. If these programs are disbanded, then the employees may have to look elsewhere for health care and this adds an added expense to their monthly salary. In this case, the higher minimum wage does not benefit but can rather harm employees as, often times, private health insurance is a much greater expense than the health insurance companies provide. Employers may also cut hours in order to still pay employees at the higher minimum wage but still not provide these benefits seeing as Federal Law does not require part-time employees to be provided health insurance or other benefits by their employers. This puts added strain on employees because, while earning more, they would be working less and would still need to purchase health insurance and other
These root causes are all problems that need to be resolved in order to reduce the number of trafficked victims. Catching the traffickers and punishing them is not nearly enough to put an end to the rapidly growing industry. There need to be more state involvement to set up and implement the right laws so that less innocent people around the world will be victims to
Imagine an increase of unemployment, closing of businesses, and living costs. These would be results of an increase of minimum wage. The increasing change of minimum wage does not always result in beneficial ways. Would you want a hike in minimum wage if it could possibly raise the prices around you? Minimum wage is affecting employment, businesses, and how people live in ways that are unrewarding.
It will just be canceling out the changes. Another online article by Los Angeles Daily News, states that “To survive, more profitable businesses will have to reduce workers’ hours to a bare minimum, automate as many positions as possible and raise prices as high as the market will bear”. The only way for business people to live in these conditions is to raise their prices, but that will also mean that they will not make as many sales. Not as much sales, means that they won’t make as much