...Second, increasing minimum wage will help businesses and it will actually help the economy. Two out of three small business owners (67%) support increasing the federal minimum wage and adjusting it yearly to keep up with the cost of living. (U.S. Newswire) People with the lowest incomes are the ones most likely to spend money when their salary will increase. They will afford to buy necessities they could not afford before, which will boost sales at businesses. Those people with food stamps and those that depend on the government will not ask help to them anymore. People will have their own independence since they will be able to afford to pay for their own. Increase in wages also will increase the customer demand that businesses needed and...
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...1. Minimum wage is defined as the lowest wage at which employers must pay their workers. Minimum wage is an example of a "price floor". A price floor is established by the government to insure that a product or service receives a pay that is not "too low". Raising the minimum wage can benefit the economy. For example, less of taxpayer’s money will go to low-wage workers receiving federal assistance. Additionally, raising the minimum wage brings people up closer to a better living wage, and can decrease poverty for many Americans. However, cost of raising minimum wage is great. Firstly, the number of workers willing to work increases on the supply curve, but the number of positions available decreases on the demand curve. What results is a...
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...The issue surrounding minimum wage pay for restaurant servers is a very complex issue with many differing views and opinions. I do not believe servers should recieve the federal minimum wage alongside their normal tips. Personally, I believe that servers should make federal minimum wage and pocket half of their tip money while the other half goes back into the restaurant. I believe this will still be a large enough incentive to cause the servers to do their best, while also not forcing the restaurant to raise their prices in order to be able to afford paying their servers federal minimum wage. Servers making federal minimum wage and keeping half their tip money, while the other half goes back to the restaurant will prove many benefits for both parties involved. One obvious benefit will be the pay increase of the servers. This increase will allow the servers to only work one job, support their family, and feel the pay they recieve fits the hard work they put forth. Prior to this hypothetical pay raise, it would have been a struggle to support a family on a below minimum wage pay plus tips. If this policy were put in place, there woould now be a chance of the servers being able to make this job their long-term career instead of needing a second job to support their growing family....
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...Washington State which already has the highest minimum wage in the country; as she notes "SeaTac, home to the Seattle-Tacoma International Airport went a big step further, raising its minimum wage to an unprecedented $15." However, as the name of the town points out, SeaTac's main industry is the International Airport. While the business community in this town may not be truly representative of the national business climate, the same monotonous arguments against a living wage are present. Consequently, the tired remarks from those against a living wage are listed and argued against by the author. They include the age-old claims of business owners, more specifically from those claiming to represent the small business owners. While the loudest voices speak of the...
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...Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania The article aims to evaluate the impact of increased minimum wage from $4.25 to $5.05 per hour in 1992 on the employees working in fast-food restaurants in New Jersey and Pennsylvania. The author has shown two comparisons in this study. One is the comparison of employment growth rates at Stores in New Jersey and Pennsylvania before and after the rise of minimum wage. And second is change in the employment rate from stores which paid higher wages initially to the changes in lower wage stores. His study concluded that there is no indication that the increase in minimum wage reduces employment. Analogous to this case study, based on the basic economic concepts, rise in the wage rate per hour have two effects – substitution effect and the income effect. If substitution effect dominates the income effect, then rise in minimum wage increases the labor supply and thus the employment rate. But if income effect dominates, then rise in minimum wage reduces unemployment. We shall understand the reason behind why rising minimum wage did not show any impact. The study analysed the 410 fast –food restaurants in New Jersey and Pennsylvania post the increase of minimum wage and compared the changes in wages, employment and prices at stores before and after such increase. Some of the other significant features of this empirical study include: first, the idea to increase the minimum wage happened...
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...The authors of this paper are in search for how employers in a low-wage labor market respond to an increase in the minimum wage. Specifically the raise in the minimum wage of New Jersey (NJ) on April 1st 1992 from $4.25 to $5.05 per hour and how this effected the surrounding areas employment level. This question is of interest to students of economic because we would expect to see a case study like this follow the labor of demand theory, as wage increase, employment decreases. However this paper finding indicates that the rise of minimum wage does not reduce employment. Which for someone studying economic comes as a shock, and the opposite of the models we have learned in previous class. This paper is not alone in these findings because as mentioned in the paper its self earlier studies have come to the same conclusion. So as a student this gives us a real life example of the labor demand theory being disproven, at least for this case study. Both of the authors of this paper have credibility and useful backgrounds. Dr. David Card earned his Bachelor of Arts degree from Queen’s University in 1978 and his Ph.D. in Economics in 1983 from Princeton University. His main field of study is labor economics; having authored 4 books over 90 journal articles and book chapters, while currently teaching at the University of California Berkley. Dr. Alan B. Krueger received a Bachelor of Science degree from Cornell University in 1983, a Master’s of Arts in Economics from Harvard University...
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...Raising the minimums raises the maximums Most of our nation’s low-income jobs and positions are not paying like they used to. Is federal minimum wage at an all-time low? Are we not in the greatest country, where American’s who work harder live more wealthily and have more success? The first federal minimum wage legislation was created in 1938, where law stated that workers earned 25 cents an hour. Since then the federal minimum has been revised and increased twenty-two times. The federal minimum wage was ignored from the year 1981 to 1990, and again until in 2007 where wages were raised to $7.25 per hour. Eight years later, the minimum standard remains the same which is an issue for most American’s considered to be middle class today. Actually, today’s minimum wage is lower than any rate during the years between 1956 and 1985. Nearly a quarter of America’s working adults are laboring for wages that do not support families at the minimally acceptable level (Curry). A person working full-time at the federal minimum wage earns $290 in a week, around $15,080 for the year (Gillibrand). With an annual salary of $3000 less than the nation’s poverty level line, an average family of three will struggle to make ends meet. These low-income families will need government assistance, for basic living needs. At this rate of pay, even an average family who has two working/supporting parents will still have financial burdens. They will be considered a poor family, with house-hold income of...
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...Shukla; Ashish; 1381406 Minimum wage INTRODUCTION The 2012 minimum wage bill in parliament is defeated, and created dissatisfaction in society, as people are really struggling to manage their lives, especially particular section of society who is unskilled and working on minimum wage. Now to understand the issues we have to look into two perceptions first from general public for whom good life means more money, second from economist mind for example Tim Maloney who studied series of data from 1985 to mid 1990 to addresses the impact of minimum wage change on teenagers and young adults. He finds negative impact of minimum wage on youth and young adults labor market, with demand elasticity of -0.35, and over longer time period -0.38(Chapple,1997). Now suppose a young adult who don’t have job and gets one but employee don’t want to pay minimum wage as he thinks he will lose money, in this situation as government has set price floor for wages and ready to pay government benefits from tax payer money but will not allow anyone to work below minimum wage, in this case government is losing money and increasing unemployment. In this situation if minimum wage increase, can create imbalance in economic structure, and if not will create dissatisfaction in normal public. EFFECT ON SOCIETY Increase in minimum wage has different impact on society; it’s suggested that some segments of society which will be affected like youth (16-18 age), adult (20+ ages)...
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...When examining the topic of minimum wage, it is imperative that one has a basic understanding of the United States economy, as well as an understanding of basic monetary principles. The United States has a Capitalist economy, which means that the economy is owned by private investors rather than the government, and prices and production are determined by supply and demand. Inflation, another key term when discussing money, is, principally, the devaluing of currency. This inflation can happen several ways: first, the currency becomes less rare, making it worth less and less; second, an increase in the price of goods or services without an increase in the value. One example of the latter process would be increasing the cost of labor without increasing...
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...Compensation, and Minimum a growing management issue. By: Kendra Wright MGMT 630-9022 Turnitin score : As we enter the second decade of the 21st century and examine the management issues facing today’s organizations one in particular sticks out, and probably has been seen on many media outlets over the past few months. Compensation, and minimum wage a many organizations are encountering especially the fast food industry. The McDonalds Corporation has been at the forefront of this heated minimum wage battle between workers, and management. We will go more depth with the issues surrounding this organization, after we first have an understanding of what exactly minimum wage is entails. The minimum wage policy was created in the late 1930s, the law mandates that hourly pay does not go below a fixed level, and that these regulations are being enforced. There are many debates surrounding the issue of minimum wage. You will find many who believe minimum wage increases the likely hood of unemployment, and is not doing anything to help those stuck in the low earning workforce situation. Countering that argument are those who believe minimum wages ward off or decrease people from falling into poverty and exploitation. (Wilkinson, T.M 2004) In my review of the case study “Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New...
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...federal minimum wage. Minimum wage is the amount of money an employer can legally pay an employee per hour. It makes sure workers are compensated fairly and protected from exploitation. Each state minimum varies in amount; however, the federal minimum currently sets at $7.25 per hour (Chang 12). Increasing the minimum wage would help workers and families without harming the business economy....
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...How ‘fair’ are wage practices along the supply chain? Global assessment in 2010-111 Daniel Vaughan-Whitehead 2 SUMMARY Worrying global wage trends around the world as well as poor wage practices along the supply chain – both exacerbated by the economic crisis – have led to increasing concerns over wage issues. This paper is aimed at identifying how ‘fair’ would be wage practices along the supply chain. For this we first propose to define ‘Fair wages’ through a new approach, the ‘Fair wage approach’, aimed at providing CSR actors with a coherent set of fair wage dimensions and indicators. This new approach is then applied in a large-scale exercise carried out on wages in more than 100 suppliers in Asia and complemented by three case studies in China. This exercise carried out in 2010-11 provides first hand and most recent information on wage practices among suppliers. The results identify a number of wage problems along the supply chain, and also confirm the need to address wage issues using a broad spectrum of different ‘fair wage’ dimensions, including living wages, minimum wages, prevailing wages, social dialogue, the payment of working hours and the evolution of wages in accordance with prices, enterprise performance and changes in technology and human capital. Paper prepared for the Better Work conference, 26-28 October 2011, Washington DC. Data have been collected through the 2010 auditing process of the Fair Labor Association (FLA). I would like to thank Kenan Ercel, Patrick...
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...Professor Bajwa 13 November 2013 Against Raising Minimum Wage In my opinion, more people are hurt by a minimum wage increase than are helped by it. Increasing the minimum wage helps some low wage workers in the short run but is detrimental to the majority of society in the long run. An increase in the minimum wage helps some low wage workers in the short run. If a worker earned less than the new minimum wage, it is beneficial to them to get an increase in their hourly wage, as long as the prices of goods and services stays the same and the company they work for is not forced to downsize. In spite of a temporary benefit to one group of workers, an increase in the minimum wage is harmful to several other groups. Employers, some low wage employees, and society as a whole are hurt by the increase. Employers are harmed by an increase in the minimum wage. The increase causes a company’s cost of operation to go up. Higher input prices decrease a company’s profits. Because of the higher cost of labor, an employer cannot employ as many workers. This causes a decrease in the company’s productivity, which also decreases their profits. Small businesses especially have a difficult time accommodating increases in minimum wage because they do not have as large of a budget to work with. Some low wage workers lose their jobs as a result of an increase in minimum wage. The company they work for may decide to let some of their low wage employees go to offset the increase in the cost...
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...Application Paper Coy, Peter. “How Much Am I Worth? - The Case for a $10.10 Minimum Wage.” Bloomberg Businessweek. Feb 2014: 10-13. Print. The Cost-Of-Living in Hawaii and New York are among the highest. Yet, in both states the minimum wage is set at $7.25. In his January 2014 State of the Union address, President Obama requested to raise a new federal minimum wage of $10.10 an hour. This movement has progressed within the past couple of weeks since its publication in February 2014. In the following pages, I will attempt to update and fill in the gaps where the article has left off. How would you like a 40% increase in your payroll? I bet that sounds like a great idea! How about if you and your fellow coworker’s all received a 40% raise? Even better right? Now, what if that 40% increase went through with the entire nation? Although raising the minimum wage would not increase everyone’s wage, this is where the controversy starts. Set in 1938, the Fair Labor Standards Act, or FLSA, is the fundamental compensation law in the United States. It is the federal law that establishes a minimum wage and limits the number of hours that may be worked in a standard week. It defines two categories of employees, the exempt employees and the non-exempt employees. The exempt employees are not allowed over-time pay, and non-exempt employees who are allowed overtime. The non-exempt employees are highly effected through this issue of raising minimum wage. Non-exempt employees are given the benefit of...
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...Analysis of Case Study for International Business By Assistant Professor Asif Mahbub Karim MBA, CA(Inter.), KPMG, MCFC,MBA, B.Com. PhD Research Fellow, Malaysia Coordinator – BBA & MBA Program Stamford University Bangladesh Introduction Background of the Case Established in 1972. Company has $10 billion in annual revenue. It sells in 140 countries. It only Sub Contracts. Employs 550,000 all around. Mission Statement “ Just Do It “ Accusations !! Products are made in Sweatshops. Many are Child Worker. Work in hazardous condition. Less than Subsistence Wages. Nike have become symbol of Evils of Globalization. Global Exchange – A Human Right Organization targeted Nike for repeated critisicm. Accusations !! The condition at foreign factories was at stake. Subcontractors were not matching minimum local labor laws. Long working hours. Working environment very poor. Minimum Wage rate very low. Safety & Security compliances not followed. Case Against Nike In search of cheap labor Nike looks factories as such in target countries where minimum wage level is not set. Targeting literate , disciplined and desperate job seekers. Mostly young women are hired. Labors don’t share Nike’s huge profit. They work 6 days a week for only $40 a month - just 20 cents an hour. Attack on Nike’s Sub Contracting Some factories were employing 11 years old labors in Indonesia for their sneakers. Wage as low...
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