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. 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
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. Although it is unclear if increasing the minimum wage will have negative effects on employment, supporters still anticipate that the increase in minimum wage will reduce
Could the rich control on how inequality affect the American economy? While, many Americans are facing unemployment; the rich are getting wealthier. The management of successful companies are taking avenge of the working class to apply less labor to achieve high profit for themselves. In Up Against Wal-Mart, Karen Olsson explores on how Wal-Mart are being unfair to their employees. The upper management are under paying and asking their employees to work extra hours with not paying them for those hours.
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
Saltsman goes on to say that those who actually live in poverty need to find a job to help their situation before Congress touch the minimum wage. Raising the minimum wage will only increase the prices of everyday goods, especially since big corporations, such as McDonald’s, want to keep their profit margins large. On the other hand, Surowiecki explains that higher minimum wage remains only half of the problem; he suggests that Congress must expand earned-income tax credit and strengthen child and health care systems. In contrast, Saltsman refutes this statement when mentioning that unskilled workers will lose their jobs if the minimum wage is raised because their job will go to higher educated
This means more profit for businesses because the rise on food and oil means more money in their wallet but less money in consumers’ wallets, “Similarly, when homeowners benefit from inflation because the price of their homes rises, while renters suffer because they are paying higher rent” (ch.8 p. 15). Hence government should step in to intervene in businesses, but it is a completely different story if we are running out of food and oil rather than just raising the price because they want to. When businesses are filling up their account with more money, but leaving their consumers with less money in their wallet there is a problem and it will hurt the supply and demand law. That being the case, government should be given the authority to regulate markets only to an extent to make sure the inflation level stays at a reasonable
In the end, the disadvantages far outweigh the benefits of raising the federal minimum wage to $15 an hour. The benefits will only help in the short term while the disadvantages will be longer lasting and will hurt Americans across the nation. Fixing a problem with a solution that will turn around to be the same problem is not beneficial to the people. Similar to the French Revolution where workers, experiencing starvation and harsh jobs, rebelled against the government, workers in the United States are standing up against the government to raise the minimum wage. Fortunately, the lid of the pressure cooker has not been fully lifted.
My response to this is that the reason why cost of living would significantly increase is due to the greed and obsession of maximizing profits between shareholders and the large corporations. It is insane to think that something that a company sells for $200 would only cost less than fifty cents to produce, and the person that made that product would probably be paid less than ten cents to make it. Improving working conditions for sweatshops and increasing the wages to even a tenth of what our minimum wage is would realistically be a negligible price for the companies to sacrifice. Sweatshops are characterized by having two or more labour laws and this already presents itself as a problem. We cannot treat sweatshops as simply employment for it 's workers because it is not, if sweatshops did not violate labour laws they would just be called a workplace or factory.
As opposed to economical benefit, there are many limitations. One may be that the government loses great power status with a declining population. With a bigger economy, governments are able to have bigger armies, bigger production, etc. Having less people and more emigrants leaving their country, it is difficult to do so for many governments, including Germany itself. With a declining population, the government’s economy will, too, decline due to the little occupations/participations, low amount of taxes, henceforth increasing the taxes for each individuals (however, mentioned previously, this may be a better solution).
Economical effects: Concern about the economical impact of immigration has divided into two aspects: the effect on the change of wages; and the development and contribution of different industries. First, the numbers of immigrants increase leads to the average wages decrease. Since the population of the country increase with the labor supply, it means more people would have to look for jobs in every wage levels to earn a living. As people need to compete intensively in order to get the job, companies can pay lower to the workers to obtain employment, which reduces their labor cost to earn more revenue. According to Immigrant Families and Workers (2003 November), it stated that immigrants’ hourly wages are lower on average than those for natives, and nearly half earn less than 200 percent of the minimum wage—versus one-third of native workers.