...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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...Argumentative Essay: Is it really worth it? LABR 1F90 Haseeb Mohammad 5591979 T.A – Nathan Cecckin March 25, 2016 “I do not support raising the minimum wage, and the reason is as follows. When the minimum wage is raised, workers are priced out of the market. That is the economic reality that seems, at least so far, to be missing from this discussion.” as John Sununu states, raising minimum wage is not a great decision. The minimum wage rate must not increase for the reason that this will put many firms out of business, and will also lower the employment rate. Assuming firms are employing resources at maximum efficiency, increasing the labor wages will cause immense damage. An increase in minimum wage will not help our economic system become efficient; in order to allow our economy to run smoothly there mustn’t be an increase in labor wages. Increasing wage rates will increase the unemployment rate resulting in an increase in inflation allowing an increase in poverty, increasing the minimum wage rate will also increase the expenses for businesses, and lastly it will also affect a majority of high school students. If the industries suppliers’ prices increase along with the wages many industries will start to go bankrupt because of the decrease in demand for the industries’ products, resulting in a decrease of employment for low skilled workers, or young people just as Niels Veldhuis & Sylvia LeRoy explain in their academic journal, “Specifically, he concluded...
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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...
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...Title: Write an essay which uses a variety of sources to analyse the main causes of unemployment. Identify strategies that governments can use to reduce each of these causes. Assess which of these strategies might be most useful in reducing unemployment. Governments often regard reducing unemployment as one of the main economic objectives. Unemployment is the existence that there is labour force able and willing to work but is unable to be employed (Bannock, Baxter, 2011). It tends to follow a cyclical pattern. In the early 1990s, the unemployment began to rise as economies around the world went into recession. On the other hand, in the mid-1990s, unemployment fell as the world was in the period of expansion. The UK is now in a very low level of unemployment. The causes of unemployment can be categorized into equilibrium unemployment and disequilibrium unemployment. It can be classical, cyclical, frictional and structural. This essay will first describe the main causes of unemployment. Then, it will survey the possible policies that can be adopted by the government to reduce these causes. Finally, it will evaluate the most useful policy. Disequilibrium unemployment is the condition that the supply of labour exceeds the demand of labour and the wages remain relatively unchanged (Gillespie, 2011). Classical (real wage) unemployment and cyclical (demand-deficient) unemployment are two possible causes of disequilibrium unemployment. Classical or real wage unemployment will happen...
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...Federal Minimum Wage Proposal Research Essay MDH-ECO210 President Obama has proposed to increase the Federal Minimum Wage to $10.10 as well as increase the Earned Income Tax Credit among other items associated with this. There are those who oppose the increase to Federal Minimum Wage as well as those who support this proposal. What we have to question when looking at this increase is whether or not it will actually help the economy or if it will simply raise costs of everything we buy on a daily basis. It is necessary that “businesses need to have money available to pay for labor, materials, power, and other inputs” (McConnell, Brue, Flynn, 315). It is debated if raising minimum wage will stifle these businesses, by increasing their pay rate for labor. There are many factors to consider when looking at this proposal that has a multitude of pros and cons. If this constant debate continues as it has in the previous instances then the typical result will be that most Republicans will oppose the proposal while the majority of Democrats will be in favor of passing the bill. President Obama is quoted as saying in his State of the Union address that “in the wealthiest nation on Earth, no one who works full time should have to live in poverty” (Hassett, Strain, 2013). The case that is made against raising the minimum wage is very simple; by raising the minimum wage it makes it more expensive for businesses to hire employees. Those who retain their jobs will make more money;...
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...CCGL 9018 Final Essay Name: CHAN YIK UID 3035036503 Case study of Wal-Mart Introduction In this essay, the case of Wal-Mart will be discussed by applying the Milton Friedman’s argument on CSR and utilitarianism. Wal-Mart is the largest retailer in the world, however, it is also known for ruthless exploitation of employee, squeezing suppliers, and crushing communities. It has been the Public Enemy No. 1 for a generation of activists and reformers. To cope with these oppositions, Wal-Mart responded vigorously and, instead, announced plans to preserving the environment, fighting hunger, empowering women and providing access to healthy, affordable food. The essay will try to argue the problems of Wal-Mart dominating the world in the retail business to create great profit by giving low wages to the employee according to Milton Friedman and utilitarianism. Also, it will discuss how the plans announced by Wal-Mart deal with the global responsibility. Moreover, how should government involve in this situation. Problem: Low-wages for the Employee 1. Milton Friedman According to Milton Friedman, an American economist and philosopher, the most important social responsibility of a corporation is to maximize profit for its owner- stockholder (Friedman, 1970). He suggested that if a corporation put the focus on being socially responsible, it would make the corporation less competitive with those competitors who did not put much focus on social responsibility. For the...
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...Paul Krugman begins this article by asking the audience why rising inequality matters. This positions him to lead into the reasons why it is important to lower and middle class American’s. Coupled with his examples of importance, he suggests policy reform to help fix these issues. Krugman believes the middle class is disintegrating; he uses a simple quote from Thomas Jefferson to bring forward the idea that men who believed the middle class to be the most important part of the nation founded our country. He addresses the opposition that economic inequality is now balanced by social equality. Moving forward he breaks down the argument with the fact that middle class parents are willing to indebt themselves more than ever before in order to...
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...In today’s society people are having hard times finding a job that will be able to allow them to pay for their houses, rent, and other expenses and this is mainly due to the fact that the minimum wage is just not going to provide enough money month to month in order to pay these things off. In this essay I will be describing why the United States should raise the minimum requirements from their current position. Minimal wage means the lowest amount of money that an employer can pay an employee without it being considered unfair payment. Minimum wage has fluctuated and changed many times in the past 40 years. “The minimum wage was signed into law by President Roosevelt on June 25, 1938 as part of the Fair Labor Standards Act of 1938. The first...
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...Martin Luther King Jr.’s “Beyond Vietnam” speech touched upon the dangers of our nation’s increasing materialism, instructing us to “shift from a thing-oriented society to a person-oriented society.” Years later, this idea is just as relevant, if not more so. Our nation is facing the potentially dangerous problem of income inequality. There are constantly debates over the topic of raising the minimum wage, and with good reason: Between 1979 and 2009, the wealthiest 5 percent of American families saw income increases of 72.7 percent, while the lowest income group in America saw a decrease of 7.4 percent in income. Meanwhile, in the same time frame, productivity has increased by 90 percent. These issues combined have caused a huge wealth gap in America. This is primarily due, of course, to the selfish materialism of those higher-ups who prefer to have millions of dollars for themselves while the very citizens that work for them barely have enough to feed themselves. While this conflict has not yet become violent, it could do so quickly. Think of the French Revolution in the 18th century. It was caused by the poor finally rebelling against the rich who oppressed them. Already, in the present, there are some forms of rebellion, albeit nonviolent. The Occupy Wall Street Movement has protested this income inequality. While there are many different viewpoints on the subject, one solution to this issue is simple in theory: Those with more must give to those with less. If...
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...Raising the minimum wage to me doesn’t make sense at all because all it does is cause unemployment. My opinion is that people will less likely be hired if they don't have proper education. Raising minimum wage means more people are laid off because companies will not be able to afford having so many workers or they will just build computers to do our jobs for us. High school students will no longer have easy access to jobs,because companies are not going to want to pay a high schooler the same as an adult with more experience. Why would they hire an inexperienced high school student and pay them as much as a highly skilled adult. Also by increasing minimum wage it impact not only job, income gap, but also inflation. The increase would have other ripple effects, such it would raise the price of goods as companies would have to increase the price of their products to offset what is being paid in wages to their employees or this could lead to companies outsourcing more to outside of the country like to India. The audience this essay will be pointed towards are the people protesting about minimum wage without educating themselves on the impact it will...
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...individual workers substitute leisure for income at higher wage rates, the market supply curve of is negatively sloped. 4. Factor A is a major input in the production of commodity B. A price ceiling on A below its equilibrium price will increase the price of commodity B. 5. Industry A uses more capital per worker than does industry B. Therefore, wage rates in industry A must be higher than in industry B. 6. The marginal productivity theory of distribution implies that under universally competitive conditions, the distribution of income is fair. 7. Labor’s marginal revenue product curve in an imperfectly competitive factor market is a mutatis mutandis demand curve. 8. A competitive firm uses two inputs, labor (L) and capital (K). A decrease in the wage rate will lead to a reduction in the quantity of capital employed in the long run. 9. The ratio of wages in competitive occupation Ato wage rates in competitive occupation B is 2. After a payroll tax of 10% in both industries, the ratio of the equilibrium wage rates will increase. 10. Community A has a preferred set of government services relative to community B. Both communities finance their local government services with property taxes. Since property tax rates will be higher in Community A, that community will have lower property values, ceteris paribus. Calculate: Answer each of the following questions, showing your work. 11. The reservation wage for plumbers is given by wr = $200 + 2L, and the...
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...KRYSTLE HANSEN BARRY KOTLOVE ESSAY ASSIGNMENT ESSAY #1 DOMESTIC MARKET Health care reform is a political and economic topic that has been debated for years. Most recently in the United States under the president Barack Obama's current term he passed a law that most of us Americans refer to as Obama Care but is also known as the Affordable Care Act. This law requires every American to have some sort of health care coverage. However, is affordable health care really that affordable? There are some countries that have national health insurance systems where government uses tax revenues to provide a basic health care package. However, in America most citizens are enrolled in private health care Insurance usually provided by their employer. Health care provided by employers does come at a cost. It does drive up the cost of labor because it’s another cost incurred by the firm and sometimes the employee. Several companies I have worked for in the past have shared the cost of insurance; by doing this the firm does not incur all the costs of health care; the firm also avoids being fined for not providing health care. If the firm does not provide health care and has more than 50 employees the firm will incur of fine of $5,000. Thus, employers are essentially forced to either incur the costs of health care or pass part or all the costs onto the employee, therefore, decreasing the overall amount the employee actually makes. Some employers could use health care benefits as an enticement...
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...were unemployed and had lost all their financial earnings. However in 1932 Franklin Roosevelt was elected because he had promised to present a “new deal” for the American people, Roosevelt planned to do this by increasing government spending and enacting numerous work programs in an effort to stimulate the economy. Furthermore in this essay I will evaluate how far the new deal affected different groups of American citizens, in order to bring a positive change. The new deal was primarily conceived as a solution to the economic crisis of the hoover years and it can be argued that it delivered significant improvements, as it stressed the importance of rapid, national action. This meant that federal government had to take over some policy making that was the role of the individual states. Roosevelt’s new deal consisted of ‘alphabet agencies’ organisations, created to tackle specific problems Americas...
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...the labour market in an economy to work optimally. There are five main types of unemployment, which are real wage unemployment, demand deficient unemployment, frictional unemployment, structural unemployment and hidden unemployment. On the other hand, this essay will show the different between Keynesian and Monetarist economists. There are including two main policies in Keynesian economist which are reflationary and deflationary policies. Also, there are two main policies which are supply-side and money supply policies of monetarist policies. Firstly, according to real wage unemployment which also called classical unemployment. Real wage unemployment is a form of disequilibrium unemployment that occurs when real wages for jobs are forced above the market clearing level. Traditionally, trade unions and wages councils are seen as the institutions causing this type of unemployment although the importance of trade unions in the UK labour market has diminished significantly over recent years and this has not stopped unemployment reaching nearly three million twice in the last twenty years. Classical unemployment is thought to be the result of real wages being above their market clearing level leading to an excess supply of labour. Some economists believe that the introduction of the national minimum wage may create some classical unemployment in industries where average wage rates are closer to the NMW level and where international competition from low-labour cost producers is severe...
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...conflict, disappearing jobs, higher education cost, and increasing poverty in America, the homeless need our help more than ever. Just last year, the national poverty rate rose to include 13.2 % of the population. Also, 3.5 million people were forced to sleep in parks, shelters, under bridges or in cars. Hunger and homelessness are increasing epidemics plaguing the United States. Because of the high cost of living, high unemployment rates, and low-wage jobs, countless Americans are forced to choose between food, housing, and other expenses. According to recent studies, money is being devoted to rent and utilities rather than food. 35% of the homeless population is families with children, 23% are U.S. military veterans, 25% are children under the age of 18, 20-25% suffers from mental illness and 30% have experienced domestic violence. 19.3 % of homeless people live in New York City and Los Angeles. New York City has been shown to have the highest number of homeless people in the country. The next biggest is Loss Angeles and then Seattle/King County Washington. As a result of doing nothing for the homeless, more people will become homeless. That means, more people sleeping on the streets, dying from hunger, and possibly an even higher crime rate. Economic factors play a huge role in the issue of homelessness. The number one cause of homelessness is the shortage of affordable housing. With such low incomes and low minimum wage workers, food and shelter can’t be afforded. Over the...
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