...federal and state laws setting minimum wages for workers. There are also city laws setting price ceilings for housing rents. Why are there laws setting minimum wages for workers and maximum rents for housing? The U.S congress first instituted a minimum wage with the Fair Labor Standard Act of 1938 to ensure worker’s can afford minimally adequate standard of living.(Mankiw,2008). However, minimum wage laws may raise the income of some workers, but they also cause other workers to be unemployed. The wage levels are fundamentally determined by the productivity of its labor force. The impact of the minimum wage depends on the skills and experience of the workers. The rent control policy such as maximum rents for housing was created to set a legal maximum on the amount landlords can charge for their properties. it is also known as Emergency Tenant Protection Act. The policy helps the poor by making housing more affordable. according to Mankiw, (2008) rent controls are beneficial but can also be disadvantaging because rent control may keep rents low, but it also discourage landlords from maintaining their buildings and housing hard to find. Why are there no laws setting maximum wages for workers or minimum rents for housing? There are no laws for setting maximum wages for workers or minimum rents for housing because it regulates itself overtime. For example when the economy is doing well, the wages and rents are favorable to the people. Setting minimum rent setting would affect...
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...your conclusions. 1. There are federal and state laws setting minimum wages for workers. There are also city laws setting price ceilings for housing rents. a. Why are there laws setting minimum wages for workers and maximum rents for housing? The laws set for minimum wages protect unskilled workers from exploitation (Gorman, 2008) and provide them with a “living wage” (Livingston, 2011). The idea of a minimum wage was created in Australia and New Zealand to reduce poverty (Gorman, 2008). Maximum rents for housing was created to protect tenants from increased monthly rent cost by landlords (Block, 2008). Formally, rent control is known as the Emergency Tenant Protection Act; which was created during World War II in New York City (Block, 2008). b. Why are there no laws setting maximum wages for workers or minimum rents for housing? Setting a maximum wage law will not only hinder the economy but hurt high wage workers purchasing power. When the economy is booming, most workers receive raises, however if there is a cap placed on the wages, workers would max out their earnings. If workers production levels in one hour is 10 times what they receive in compensation, the only party benefiting in the transactions in the company. Maximum wages would also hurt the market for luxury items. Workers may be reluctant in purchasing certain luxury items because once they have reach there max wage; there is no room for wage increases. A price control for rent was created in an effort...
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...the economy get back to where we are used to seeing is raising the minimum wage. A) Due to the current economic situation, many consumers are having a difficult time purchasing products they need. Consumers cannot save money since the cost of living has increased drastically. Consumers need additional funds and the government is perhaps their best hope to receive that. B) Raising the minimum wage for employees has far more advantages, especially during a time like this, then keeping the minimum wage static. II) One of the reasons that raising the minimum wage is critical is because the cost of living has increased. C) The neglect of increasing the minimum wages over the past 10 years has caused numerous families to suffer into poverty level. Due to the cost of living increasing, more and more families have had to find alternative ways to live a normal life. These challenges over time become more and more difficult and it is becoming too common in our society. D) Most families in large cities need about $30,000-40,000 annual income for bills and necessities alone. This often times can be accomplished if the economy is well and jobs are available. However, due to job troubles and many businesses laying-off employees, there does not seem to be enough money available to pay these residents to earn what is necessary. III) Many people would benefit from a raise in minimum wage. It would benefit taxpayers, poor families, as well as businesses...
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...The Advantages and Disadvantages of the Minimum Wage Law The federal minimum wage law was introduced in the year 1938. The US was in grave economic jeopardy, on account of the Great Depression, which lasted from 1929 to the early 1940’s. The enactment of the federal minimum wage law provided an appreciable measure of relief to employees, who were now assured of at least 25cents an hour with a 44 hour weekly work ceiling. This act clearly stated that the wages paid to an employee were to be adequate to ensure a standard of living that was essential for general well – being, efficiency and health. However, such minimum wages were not to bring about any appreciable reduction in employment. From the period, there have been several debates over the advantages and disadvantages of a minimum wage. The detractors of the minimum wage have rightly pointed out that it tends to reduce jobs. This has been countered by the proponents of the minimum wage who contend that it enhances the purchasing power of the consumer and also increases productivity. The purchasing of the federal minimum wage had risen to its highest in the year 1968, when the minimum wage for an hour’s work could purchase 5 gallons of gasoline. This underwent a gradual but consistent decline, and by the year 2006 the minimum hourly wage could barely procure 2 gallons of gasoline. The minimum wage is not uniform across the states, and some of the states have mandated much higher minimum wages. For example, Washington obliges...
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...practical application or implications. 5. Feel free to review classmates' postings and comment on their viewpoints. Week 1 Discussion Topic: Part 3: Government Price Controls 1. There are federal and state laws setting minimum wages for workers. There are also city laws setting price ceilings for housing rents. a. Why are there laws setting minimum wages for workers and maximum rents for housing? b. Why are there no laws setting maximum wages for workers or minimum rents for housing? 2. It has been stated that price controls cause shortages or surpluses. a. Do rent controls cause shortages or surpluses, and why? b. Do minimum wage laws cause shortages or surpluses, and why? 3. What are the advantages and disadvantages of minimum wage laws for: a. Workers? b. Employers? c. Consumers? d. If minimum wage laws are beneficial, why are minimum wages set as low as they are – for example, what about a minimum wage rate of $100 per hour? e. If rent controls are beneficial, why are rent ceilings set as high as they are – for example, what about a rent ceiling of $100 per month for every rent-controlled dwelling? 4. From the questions and answers above, what do you conclude in general about the advantages and disadvantages of price control laws that set price ceilings and price floors for any and all goods and services? Week 1...
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...raise the minimum wage to 15 dollars national wide without even think of how it is going to affect the economy as well as the citizens of this country. Raising the minimum wage to 15 dollars national wide will lead to a disaster. According to Douglas Holtz- Eakin, raising the minimum wage will hurt the poor citizens more than people think it would help them (Holtz-Eakin, 2015). As it is obvious, the cost of living is different in every states. Therefore, raising the minimum wages to 15 dollars national wide will be such disadvantage for many states in this country. For instance, New York, the minimum wage...
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...PCM HANDOUT On Wage Administration Wages- Definition “Wages" means all remuneration capable of being expressed in terms of money, which would, if the terms of employment, expressed or implied, were fulfilled, be payable to a workman in respect of his employment or of work done in such employment, and includes– (i) such allowances (including dearness allowance) as the workman is for the time being entitled to; (ii) the value of any house accommodation, or of supply of light, water, medical attendance or other amenity or of any service or of any concessional supply of food-grains or other articles; (iii) any travelling concession; 2*[(iv) any commission payable on the promotion of sales or business or both;] but does not include– (a) any bonus; (b) any contribution paid or payable by the employer to any pension fund or provident fund or for the benefit of the workman under any law for the time being in force; (c) any gratuity payable on the termination of his service;] Statutory Minimum Wages Minimum Wages as notified by the Government under Minimum Wages Act, 1948 for different scheduled employments are called as Statutory Minimum Wages. Bare Minimum Wage Bare Minimum Wage is the minimum income necessary for a worker to meet needs considered basic. These needs include shelter (housing) and other incidentals such as clothing and nutrition. Minimum Wage Minimum wage is the wage that is able to provide not only for...
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...jobs we get and also the wage rate (Parkin et al 2012). The labour market is a place where workers and employers interact with each other in order labour for wage. Employers in the labour market compete to hire the best labour force while workers compete for the best satisfying job (William E, 2013). The government intervene on this market to regulate workers being exploited from employers, the intervention also create problems for both the workers and employers. This essay will discuss the advantages and disadvantages on government intervention on this market. Firstly, we will discuss the advantages and disadvantage of minimum wage on labour force followed by other government interventions such as taxation. There are several advantages of the minimum wage on workers. The minimum wage could benefit low wage workers (Hui T.W 2013), it could also lead to skill upgrading which will enable workers to earn higher pay is premised on existing skill training and increased opportunities of workers. A general job-specific, professional and executive training course has been implemented by the Singapore government which is being funded to increase workers employability and skills. It also motivates employers to seek improved skill workers which will increase productivity in line with the higher paid wage. Therefore, minimum wages provide a platform to skill upgrading and wage increase whereby enhancing workers to reach their full potential. The minimum wage increases the living standard...
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...extend. Mostly business aims at profit and so there will be stiff competition. One who strictly follows ethics may not be able to survive in the market as the tough competitors would always run far ahead of him. Business ethics reduce a company's freedom to maximize its profit. For example, a multinational company may move its manufacturing facility to a developing country to reduce costs. Practices acceptable in that country, such as child labor, poor health and safety, poverty-level wages and coerced employment, will not be tolerated by an ethical company. Improvements in working conditions, such as a living wage and minimum health and safety standard,s reduce the level of cost-savings that the company generates. However, it could be argued that the restrictions on company freedom benefit wider society. The advantage of having international business ethics is that an ethical company is attractive to consumers. It also helps companies operate within most international regulations. The disadvantage of international business ethics is that in some countries, the ethical code is not as strict and it may be customary to perform unethical actions, like bribery, to do business. An ethical company would not be able to do business in that situation. for a company to have business ethics that usually is a...
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...* (T) Large percentage of baby boomers is becoming threat for fast food industries. . (generation in the workplace in the united states and canada, 2012) * 31.9% of the whole Canadian population is covered by Baby Boomers and they don’t prefer to consume fast food which is going to be a threat | Socio-Culture | * (T) People are stepping backward from fast food which is going to be a big threat in future (Lojitmairembam, 2013) * Now, people are becoming more health conscious. They are stepping back from fast food as it does not contain any vitamins, minerals and fibres and this going to be a threat for fast food industries industries in future. | Economic | * (T)Increasing minimum wage rate is going to be a threat for the fast food industries. (Drum, 2013) * As the minimum wage rate increases for the fast food workers than the fast food industries have to pay more to the worker which decrease the profit margin of the industries. * (T)Inflation and exchange rates are the other threats for fast food Industries. (Rodrigo, 2012) * Inflation rates and exchange rates both effects the supply and demand relationship of raw material which directly affect the industry’s production. A little bit change in these rates decreases the industry’s production which affects the profit of the industry. | Technological | * (O)Improvement in technological factors of an industry will be a great opportunity for the industry. (Rodrigo, 2012) * Technological factors are one of...
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...Course code: | ebc1009 | | Group number: | 46 | | Tutor name: | Emre Ergin | | Writing tutor name: | Kirsty Donald | | Writing assignment: | Main Paper (Task 10) | | number of words: | 1990 | | carina.grosseentrup@maastrichtuniversity.nl Table of Contents 1. Introduction 2. Government intervention 3. Government intervention to reduce income inequality 3.1 In-kind transfers 3.2 Minimum wage 3.2.1 Effects of minimum wage on labour market 3.3 Income tax 4. Conclusion 1. Introduction Although income grew by almost three percent per year for all income classes in the period from 1950 to 1980, the ones that were mostly blessed with the highest income growth were the top earners (McDowell, 2012). Income can differ enormously between the different classes of a society and the range between the top earners and those at the bottom of the society becomes larger and larger. Income inequality is a wide discussed topic by all social classes. The well earning upper-class, people who have to struggle with a minimum living wage and the shrinking middle-class, which has to worry most about its future living situation, are affected by it (Mankiw, 2012). Economic inequality can, therefore, be described simply as a contrast between the economic conditions or situations of different individuals or of different classes of a society (Champernowne & Cowell, 1998). The gap between rich and poor can have positive as well as negative effects...
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...and to experience the metropolitan life. However, these young women have underestimated the hardships of living in the city such as Beijing. There are many disadvantages according to the article that these young women encountered while migrated to Beijing such as labor exploitation from a local employer( pay less than the standard wage, work in a sweat shop and long hour), gender discrimination, and sexual violence. Rural women are the target of the labor exploitation because they are lack of capital resources to be independent on their own, lack of education, and the traditional patriarchal society. Some other major disadvantages that these rural women are facing are the risk of losing their jobs anytime after they pass twenty five year old and being deported by local authority( due to the big volume of migrant workers in the city and a the unwillingness of a local owner to employ an employer who passes twenty five). There is no doubt that rural Chinese Women have more freedom in making their own decisions compared to the past, but the question is at what cost does this come? It is hard to believe that women nowadays have given the full legal protections but still have to pay a high price to prove their abilities. Their contributions are being unrecognized by the society and families. China has the competitive advantage benefits other consumerist countries like the United States because of their crowded labor force, in one estimated claims that “products made in China have...
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...evolve into a service economy because several problems arise if jobs shift from manufacturing to service. One is that service job pay less. Many service jobs are in minimum wage, while hourly wages from manufacturing jobs have historically exceeded the minimum wage by a substantial margin. As a result the standard living will necessarily decline. Furthermore, manufacturing allows the firm to capture payoff for the development of new technology. If this payoff is lost, so is the incentive to invest in research. The decline of manufacturing domestically has led to a shift in jobs from the manufacturing sector to the service sector. Because there are major disparities in labor costs in different parts of the world, there are strong incentives for American firms to locate volume manufacturing facilities overseas to reduce labor costs. 2.What disadvantages do you see if the CEO is primarily concerned with the short-term ROI? In the short term, decreasing the denominator by cutting back on the investment in new technologies or new facilities. Performance is measured over short time horizons. There is little motivation for a CEO to invest in a project that is not likely to bear fruit. 3.Can you think of companies that have gone out of business because they focused only on cost and were not able to achieve a minimum quality standard? -“Enron went from the No. 7 company on the Fortune 500 to a penny stock in a stunning three weeks because it apparently lied on its financial statements...
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...outsourcing. Should nations pursue the cheapest labor it can find or should nations be required to hire domestic labor to promote the domestic economy? In my opinion, companies need to look at its public relations side here and in the countries they wish to do business outside the United States. Companies needs to look at the culture, language barriers, and especially the customer service issues that U.S citizens face when they call customer service in another country for example India we would be challenged by the language barriers, and especially the customer service issues. Outsourcing is done by many companies like insurance companies, IT jobs, and customer service. Outsourcing is very popular in our country and internationally. The advantages of outsourcing can help businesses focus on their priorities or their main functions instead of secondary tasks. For example, if a company was good in control of their finances, it would be hired to handle only the finances. Outsourcing also reduces expenses by finding certain industries purposes in areas where important costs are cheaper and taxes are much lower. Most of our clothes, toys and shoes are made in China. Outsourcing can help reduce cost because the company doesn’t have to increase their payroll because they can spend less by outsourcing certain contracts. It increases competition in our global economy, outsourcing help companies by giving them a chance to focus on other driving factors that will increase the company’s performance...
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...The minimum wage rate is introduced in this essay, with the perspectives of weighing the benefits with that of the costs of the national minimum wage. The essay goes about discovering what exactly is minimum wage and how it impacts the economy. Moreover, the advantages are compared against the disadvantages of the minimum wage rate. Furthermore, it also covers the detailed consequences of increased minimum wage after a research on what economists have surveyed about the recent increase in the minimum wage. Thus, this essay has thoroughly evaluated the pros and cons of implying with the law to allow for national minimum wage in the labor market. The minimum wage act was created in the 1938T as Fair Labor Standards Act, which makes it legally compulsory for the employers to pay their employees for the period of time worked. The minimum wage could be defined as the “minimum rate of remuneration that is must to be paid to a wage employees for the work they have done over a period of time, which cannot be neglected or reduced by individual contract and collective agreement”. The eligibility of minimum wage is that it is allotted to workers who are below 20 years old, for long as the probationary period lasts that is for almost 3 months. The minimum wage rate...
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