Macroeconomics is the part of economics that explores the behavior and decision making of the economy as a whole, to where microeconomics focuses more on the behavior of the individuals and firms in order to understand the decision making process of the individuals and the firms. Macroeconomics deals with aggregate measures of the economy such as, national income and unemployment rates. Unemployment is one of the largest concerns in economics and can lead to many problems such as, a decline in the economy, poverty, depression, and in many cases will result in crime. Unemployment is when an individual who is of a working age is unable to get a job but would like to be fully employed.
Many politicians, business owners, and citizens hold fast to the belief that heightening the salary attached to minimum wage positions will yield negative benefits for our society. This opinion is supported by three vital view-points. The first can be found in the news article, “The Argument Against Raising Minimum Wage.” It expresses how the enlargement of this payment will take a toll on employment. The document reasons that if the amount of money employees earn is expanded, companies will be less likely to hire as many workers (Huppke).
Though it may not have this affect on all students, it would most likely affect those that already have little to no motivation to continue their education. A third obstacle would be the staff. If you were to cut down on staff their would be less jobs and a higher unemployment rate. These employees would reject the layoffs because to put it simply, it is a loss of a job that can not easily be replaced. By making them find new jobs it could cause an uproar.
The challenge, in particular to this generation, is managing the transition. " Income inequality is likely to grow, possibly leading to political instability; and the individuals who need to retrain for new careers won 't be the young, but middle-aged professionals" (Vincent). Automaton is a blessing but a potential threat to our lives economically, it will be good for business owners and manufacturers but what about the commonwealth? This concerns me because I wonder how long it will take till all is affected, till life as we know it isn 't so humane, just technological. There is a good and bad to everything, nothing is truly pure.
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. Although the minimum wage can be beneficial and advantageous for individuals and to our economy as a whole, it can also be detrimental to our nation’s finances. The federal government should not allow this to pass, but rather they should increase the citizens’ knowledge of the pernicious consequences and complications that will arise with a higher minimum wage, especially one as high as $15 per hour. Some of the resulting conflicts that will occur if this possible raise in the federal minimum wage takes effect are: job loss, business failure, higher consumer prices, and a lower demand for uneducated employees. Although it may appear as if increasing the federal minimum wage will help to lift families out of poverty, in
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
Issues and Concerns of Unemployment in Malaysia For decades, unemployment is seen as a negative issue that affects a country all over the world including Malaysia. One person may become unemployed as long as he or she is involved in the labour market. If the unemployment issue is not solved, it will give rise to a series of social and economic problems in a country. The first impact of unemployment will cause an arise of criminal activities.
At the same time unemployment impacts the economy and the society. Economy experiences decreased spending power of the families and extra expenditure on unemployment benefits, the society meets changes in the mental health, crimes and violence, standard of living and others. There were many studies conducted on dependencies and mechanisms of unemployment. Unemployment can explained by many factors as well as inflation. As one of the reasons of unemployment, inflation within the country can be considered.
These hypotheses contend against interventions forced on the work market all things considered, for example, unionization, bureaucratic work rules, the lowest pay permitted by law laws, charges, and different regulations that they case dishearten the employing of laborers. Notwithstanding these far reaching hypotheses of unemployment, there are a couple of orders of unemployment that are utilized to all the more definitely model the impacts of unemployment inside of the monetary framework. The principle sorts of unemployment incorporate auxiliary unemployment which concentrates on basic issues in the economy and inefficiencies
Either way both situations produce the same outcome which is a loss in funds for both the company and the workers. During a recession, the situation is forced on both ends. Not only does
In addition, the economy will not do so great in the near future if the government does not clean up its act and fix the problems that are going on; such as the national debt and how it can be causing a recession in the United States. With the contributing factors of how the taxes should be taken care of, certain healthcare programs draining the little money the government has to offer, government welfare programs not being more supervised by not allowing people to take advantage of it, and lastly not allowing the government to borrow so much money from foreign countries to make our debt rise to the
Although there are many ways to look at minimum wage, such as the increase and decreases, and how it will affects today 's economy it has both negative and positive effects. I believe that the minimum wage has an overall negative impact because whenever the minimum wage is increased it only makes more people recede into poverty when it is supposed to do the reverse effect. Minimum wage was originally made for people just starting out or a pay for low-skilled employees. I believe that if people can 't afford the stuff they need because of a minimum wage, then they should work harder to either get a pay raise or move to a higher paying job. This would not only help our economy grow but help people out of debt and poverty.
Unpaid internship has an impact on the economy in a negative way as it increases the youth unemployment numbers, it also causes a downfall in the wages for the economy and at the same time it contributes to slow economic growth (Langille, 2013). Langille (2013) further suggests that students or unpaid interns are made false promises of gaining the essential knowledge and experience from their time invested in the company for free and also the potential of having a full time employment at the organization, however it is not certain that they would be hired, hence the company is avoiding paying taxes to the government, which is another impact the overall economy is facing. Furthermore, it also impacts the economy in a way that the new graduates or the interns suffer from lack of security and alienation from the labour market (Langille,
I do not believe the government should raise the minimum wage. Wages stand where they are in result of the employees being low skilled and the market value of what is produced. As shown in the graph below, the government finds an average of supply and demand of the labor and decides an equilibrium price. At this point they would not have more workers necessary, which would be a surplus or a lack of workers, which would be a shortage. If a company pays workers more than what they are valued for, the firm will not stand a chance of survival against its competitors.