The main reason against minimum wage is that it creates unemployment among low skilled workers; on top of that it can be argued that the redistribution effect is not going to the target people of the measure. On the other hand, we will see that increasing wage of workers may increase also
Unemployment can explained by many factors as well as inflation. As one of the reasons of unemployment, inflation within the country can be considered. According to Phillips (1958) the inflation and the unemployment are tradeoffs, thus, the countries with lower
For firms, inflation causes cost or production to income since workers’ demand pay rises, as well as making it difficult to firms to plan for future. Inflation is an increase in general price levels and has undesirable impacts on households and firms which means the government is justified to use policies to maintain price
DISADVANTAGES Long term financial development puts an awful effect on the inhabitants of any nation. Long term economic developments may be identified with expansion, as inflations may increase. Inflations usually increase the cost of products on sale, and as the costs are higher, it will be an issue to the nationality in question to be able to buy their needs There is a limited amount of time involved in the growth of an economy as it involves an increase in GDP. The hypothesis and practice are both diverse. The hypothesis is the thing that economists are able to figure out for themselves; however, to be able to use the hypothesis in reality is the main task.
“Exchange value refers to what a particular product costs in a given system of exchange. Us value refers to its use within that society” (Sturken and Cartwright 2001: 199). “Marxist theory critiques the emphasis in capitalism on exchange over use value, in which things are valued not for what they really do but for what they’re worth in abstract, monetary terms” (Sturken and Cartwright 2001: 199). This means that if something takes twice as long to produce, it will be twice as expensive as something that would take one day to
The economic logic behind protectionist immigration agendas is that an increased population increases the labor supply and stops there. In this scenario, the equilibrium wage rate of labor supply and labor demand would be lower than the pre-immigration equilibrium wage rate, and the logic holds. Instead, separating scenario from real-world application would present previously unaccounted for effects. Being so, what actually occurs is as follows. As before, as the population increases with immigration, the labor supply would also increase, but the increased population would also lead to increased consumer spending and demand (i.e.
Moreover, the numerous economic institutions required for capitalist accumulation tend to guide the evolution of non-economic (i.e., social, political, and cultural) institutions. Therefore, where capital accumulation is the organizing principle of the economy, “it also gains significant influence on the overall nature of societies and, in certain circumstances, may become the dominant principle of societal organization.” (Jessop 2002, 29). For example, the costs associated with producing and reproducing labor power – a key component in the circuit of capital – has historically relied on a specific gendered division of labor within the family. Indeed, social relations and institutions ostensibly outside the production process are often critical for the reproduction of
Critical analysis of push and pull factors of migration and with Also gendered migration Throughout human history migration has been part of human life. People have migrated between and within countries. With a compression of space and time by the process of globalization migration has escalated. The inequality and uneven economic development between and within countries has forced people from developing countries to developed countries and also from rural to urban areas. Lee (1966) introduced the concepts of push and pull factors as the determinants of migration.
One possible explanation to this issue could be the problem of outsourcing, where there is a distinctive difference with regards to the rise in productivity between the skilled and unskilled workers. The article also utilised economic theories such as the Kuznets
The former played a key role in immigration during the late eighteenth and nineteenth century. The two-tiered bureaucracy, on the other hand, dictated immigration during the early twentieth century. Even though these policies are from two different time periods, they integrate and share similar administrative structures and processes. Both policies encouraged immigration as a source of labor power during these two periods. First, the United States acquired skilled and unskilled labor force from different countries to fill up the labor market gap caused by the shortage of qualified personnel in the country (Tichenor 70).