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
The eruption of industrialization in the Northeast in the decades following the end of Reconstruction created massive amounts of wealth for a privileged few. The cost of this unprecedented growth was paid for on the backs of the working-class labor. Men and women were forced to work unthinkable hours, children were forced into jobs at very young ages, and working conditions were nearly and workable which led to many avoidable injuries. All these atrocities were committed to maximize the profits of their employers, whose exorbitant wealth led to the era being referred too ironically as the Gilded Age. Labor leaders such as Samuel Gompers combated the powerful upper class that controlled the profits of production by attempting to organize labor
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 fact private property appears to be the cause of alienated labour but later it appears to be a consequence(1978:79). People become so alienated in capitalism for all they ultimately seek is enough capital to survive and they would work as hard as they can to achieve this. As capitalism develops, science and technology takes over the means of production and may take over the labour, yet the worker is left with continually seeking to work to survive. The problem thus is not the need to increase production, for high production is a good thing, but the problem is that through the working system of the capitalists, individuals or workers are alienated from the capacities of being people. They lose their sense of knowing their worth and self-creativity and become enslaved to their own creation but no one or “individual” can be pinpointed for doing this compulsion, they think it is a natural process(1978:306).
Which causes people to drift apart from each other and the possibility for comradeship is lessened. Lastly, is alienation from human potential. Industrial capitalism robs labourers from their human capabilities and what they can contribute to the world. Workers will lose a sense of themselves and of who they are, instead of fulfilling their needs, they deny themselves, rather than feeling joy they are depressed, they are also mentally and physically
This also hurts a lot of Americans because they get fired when immigrants are willing to work for wages way lower than what these people are normally used to. Another argument is that immigrants are a huge part in Americans economic growth. Some people argue that them increasing our population is a good thing. Also, payed taxes increase social security and the expands the federal budget. They cause for the economy to boost and their culture expands along with ours and people get to experience different cultures.
For instance, from the article “The effects of minimum wage” by David Neumark states that employers will try to keep away from low-skilled workers if the wage were to increase because it would cause them to be wasting money to train them; especially for students and high school graduates who are in absence of any work experience. With minimum wage increasing for the past couple of years it makes it difficult on employers who run small businesses to hire more new workers because they too are also citizens that have to pay their taxes and extra just to keep their business up and running. Such as the author Gina Kim who wrote the article “Minimum wage: helpful or harmful for small businesses” states that 85% of small businesses pay workers a bit more than the minimum to keep their workers interested in the job and they have to make profits out of their business to keep it on track. These businesses cannot innovate if the wage increases because then the labor market will pick up the prices on materials as well creating more of a problem for small business owners to keeping their company open for as long as possible and their solution would be to not hire a lot of employees. This pretty much explains the reasoning about how it will be troublesome for new fresh workers trying to just gain experience and get hard earned
America today is faced with its fair share of problems. There are low employment rates, debt, and inflation everywhere, riddling the economy with issues. There is absolutely no reason that any American citizen should want to pile upon the problem. Yet, some believe that it could be done by raising the federal minimum wage to fifteen dollars an hour. Fortunately, history, economics, and common sense prove the minimum wage raise proposition wrong.
If labor market has no restrictions, the wage would adjust so that anyone willing to work could find a job. Small businesses would not be the ones that are most hurt and would not be forced to close down. Companies would not have to lay off employees and decrease hiring levels. Higher wage floor also disrupts economic system and causes a lot more of side effects that are very damaging to the market. I think every country should try balance the minimum wage levels to help to stimulate economic growth and keep all the citizens happy, including the poorest and most unskilled and create many job opportunities for them.
Jack Welch created wealth while managing GE, in the 1980s he started to notice the necessities of the company. I do not believe this job could have been done any better, Mr. Welch noticed that competition was on the rise as well as outsourcing. The wages in America started to rise and he predicted that GE would not be able to keep growing and continue making profit how he envisioned it would so he started to implement his plan. He started buying well developed business and sold off the parts of those business that would not make huge profit or were not number one or two in their specific market. 2.)