The country’s minimum wage should be increased because of the current economic condition, and because it has become increasingly important in this economy to have a living wage. For various reasons, it is necessary for the minimum wage to raise to a living wage. A living wage is a wage that is enough for a person to be able to support themselves and potentially a family without a problem. Many work in retail stores that require a lot of hard labor and yet cannot support themselves for a living when they have a family and bills to worry about. The Washington DC City Council passed a law that requires Wal-Mart and other big box retailers to pay a living wage of $12.50 per hour (Washington monthly). There are plenty of companies that make millions each year, and to have employees paid at the wage of $8.00 per hour is unfair to their hard labor. The bill has not become a law yet and will not take effect for another four years. However, a minimum wage increase would raise the wages of many workers and increase benefits to those disadvantaged workers. Increasing the wage to just any retail store might have its disadvantages if the company doesn't make as much money a year as Wal-Mart, Costco, Target, etc. If the law is approved, it would only affect any retailer with cooperation’s of over $1 billion a year and stores that average 75,000 or more square feet. That’s because it wouldn’t be fair to force smaller businesses to pay their workers high wages for little work. The law being passed will affect price changes in the company’s sales. Stores affected will be raising their prices due to the law being passed. For example, Walmart will raise their prices by 1.1 percent. To look at this another way, an employee that makes an income of approximately $15,000 per year that is in a household of three will not be able to support their families and themselves. The law being passed will help the economy decrease the amount of people asking for governmental help such as...
...Against Raising MinimumWage
People everywhere are voicing out that we need to increase minimumwage, again. They say that an increase will have a minor impact on jobs but there are no facts to back them up. The impact of raising minimumwage has been studied since the beginning, and has been concluded that raising minimumwage hurts the poor, and helps the rich. Raisingminimumwage takes away jobs; especially the low-skilled and young worker, keeps people on welfare, and also encourages high school students to drop out. When you look at the facts, is it really worth raising minimumwage? All credible research has come to the same conclusions, and these I will discuss with you.
Poverty will rise
When minimumwage is raised, businesses have to raise the price on whatever products or services they offer, to offset the loss of profits from having to pay the employees more money. With products more expensive, consumers will not be able to afford to buy as much as they normally would, and businesses will start to go under; causing a huge loss of jobs. Small businesses will start going out of business first, and will eventually lead to bigger businesses. Take Visteon for example, in Connersville, Indiana. Visteon was one of the biggest employers around this area. 900 plus jobs...
...Critically examine the trend and size of poverty in Hong Kong society. Please assess the effectiveness of the present Social Security system and the Minimumwage in eradicating poverty in Hong Kong.
Poverty has been a hot issue in Hong Kong for several years. Several policies developed form the Social Security system have been adopted by the government for soothing this problem, such as the CSSA scheme and the MPF fund. Nevertheless, it seems that the poverty problem is getting worse. Voices of demanding the government to help the poor have become fiercer. Recently, the minimumwage is also called for guaranteeing the lower income group to be able to afford their living. In this essay, the trend and size of poverty in Hong Kong society would firstly be critically examined and thus the effectiveness of the present Social Security system and the minimumwage in eradicating Hong Kong’s poverty problem would be assessed.
Definition of poverty
Before examining the trend and size of poverty in Hong Kong, it is necessary to understand the definitions of poverty. According to United Nations, poverty is a denial of choices and opportunities, a violation of human dignity. It is also the lack of basic capacity to participate effectively in society. Poverty can be categorized into two types, absolute poverty and relative poverty. Absolute poverty is the basic and minimal...
...Gender Wage Gap: Economic Effects
Western Governors University
Gender Wage Gap: Economic Effects
Admittedly, the government is struggling to meet the needs of many Americans. Housing, medical assistance and nourishment, are among the highest sources of economic strain for most people. Because wages for women average 23% less than men, this leaves them in a difficult position trying to support their families and having to utilize many government assistance programs (Ren, 2010). These are not just single mothers these are two parent families, single mother head of households, and single women. They struggle to make ends meet, and when they don’t succeed, they have to turn to the government for help. In housing alone, Wider Opportunities for Women reports that three quarters of the housing assistance provided by the government is used by women as the head of household (p. 1). The Medicaid program only looks at those at or below poverty, yet 28% of families at that level are with a female head of household and relying on the government to pay their health and medical bills (Project America, 2009). The food stamp program provides assistance to almost 14% of the current U.S. population. There is no absolute way to confirm how many families feel forced to utilize these programs because of wage discrimination.
What is known is that there are 7.8 million...
...past four weeks. The unemployment rate is a measure of the prevalence of unemployment and it is calculated as a percentage by dividing the number of unemployed individuals by all individuals currently in the labor force.
Types of Unemployment:
* Classical Unemployment
Classical or real-wage unemployment occurs when real wages for a job are set above the market-clearing level, causing the number of job seekers to exceed the number of vacancies. Many economists have argued that unemployment increases the more the government intervenes into the economy to try to improve the conditions of those without jobs. For example, minimumwage laws raise the cost of laborers with few skills to above the market equilibrium, resulting in people who wish to work at the going rate but cannot as wage enforced is greater than their value as workers becoming unemployed.
Cyclical or Keynesian unemployment, also known as deficient-demand unemployment, occurs when there is not enough aggregate demand in the economy to provide jobs for everyone who wants to work. Demand for most goods and services falls, less production is needed and consequently fewer workers are needed, wages are sticky and do not fall to meet the equilibrium level, and mass unemployment results. Its name is derived from the frequent shifts in the business cycle although unemployment can also be persistent as...
How has the level of employment/unemployment and national minimumwage legislation impacted on the economy as a whole and how will this effect the economy in the years to come?
What is the current state of our economy? Well many economists think that this year the economy will slowdown. In the last ten years or so our ecomony has been driven by factors such as high consumer spending and the soaring property market, our economy has have already witnessed the housing market slowing down this in turn will have an effect on household spending.
As for our manufacturing industry this has reported its worst fall in output in more than 10 years, increasing fears over the health of the UK economy. Also Factory production it is reported fell by 4% in the year 2002, This is the largest annual slump since 1991, this is according to figures from the Office for National Statistics.
Britain's manufacturing industry is going through its worst recession since the early 1990s, however high consumer spending has so far protected the wider economy.
2004 has seen a rise in economic growth both in the UK and worldwide.
Britain has had what economists call full employment for quite some time the problem for the future is that this could soon change and we could end up like germany with 10.5 % of the population out of work. The reason that this could happen is that many jobs that exist today were created by the boom in the housing...
...CAPITAL WAGE EMPLOYMENT IN UNORGANIZED SECTOR
As stated earlier the paramount importance of the unorganized sector can be seen in the NSS survey 1999-2000 – around 92% the Indian workforce (around 370 million workers) were employed in the unorganized sector against a standard of 60% in developing countries. NCEUS report in 2004/05 showed an increase in employment in the unorganized sector by 8.6 million, the corresponding figures in organized sector also showed an estimated 8.5 million increase. This meant that by 2005 the 92% workforce of unorganized sector diminished to 86% or 392 million, and according to 2011 NCEUS report the employment in organized sector showed first signs of progress since independence.
So the bottom-line is more and more of the labor are now coming under the purview of the formal enterprises albeit in small steps over the last 5 years, however many experts feel the formalization should have happened a long time ago and the country's inefficient bureaucratic mechanism is the sole reason for procrastination of the inevitable formalization.
This chapter would analyze the Unorganized sector from three perspectives
1. Capital -Role of MFIs in extending credit,
2. Wage disparity based on Gender and
3. Employment/Unemployment numbers in different sectors as well as employment categories.
Easy access to capital through rural micro-financial institutions has created a boom for self employed workers, and about...
Raising the MinimumWage
May 05, 2014
Raising the MinimumWage
The Great Recession that began in late 2007 caused many downfalls such as real estate collapse, financial crisis, and major loss of jobs. This recession lasted until 2009 which to this day researchers say that the after math of the recession has yet to decease. The economy has not yet gone back to the way it was before the recession started. Did you know that during the Great Recession Australia was not fazed by this horrible time? There are many reasons why Australia did not faze this troublesome time, but one main reason why is because right before the Great Recession they had raised their minimumwage to $13.47 in 2006. Then they raised it again in 2007 to $13.74, which is a 27 cent increment.
When raising the minimumwage we think about what issues this can cause. The only issues concerned with raising the minimumwage is, “Would it cost a loss of jobs and will it make the economy better?” As we discuss this we will find that there will be no issues because raising the minimumwage will not only increase the job opportunities it will also allow workers to have more money to take care of their family’s financial needs. According to some political leaders raising the minimum...
November 5, 2013
Argument Rough Draft
Do minimumwage workers deserve a better paying wage? Perhaps a wage that they are believed to be able to live off of? Will raising the minimumwage help those it really intends to? With unemployment pushing 8% nationwide and costs rising, nationwide people are pushing for minimumwage to be increased. Theminimumwage was established by Franklin Roosevelt as part of the New Deal in the 1930’s. The Fair Labor Standards Act of 1938, as stated by Jonathan Grossman on dol.gov, is what ultimately established the minimumwage nationwide for all workers. The minimumwage guarantees workers a wage that is fair for all workers. It is the lowest possible amount that an employer can pay their workers.Though it is believed that the minimumwage will help the lower class, raising it will not actually help those it intends to, but in fact raise living costs and many other expenses when the minimumwage is raised.
The problem with minimumwage is that it is not kept up with yearly. As inflation across our country increases yearly, minimumwage stays the same. With unemployment at about 8%, many people are...