...Date of Submission Effects of Major Corporations Paying Low Wages Employment is the backbone of income earned by a majority of households in societies across the globe. Salary structures differ from one company to the next, since company executives dictate the level of pay earned by staff members. Minimum wage is set by the government and it is the discretion of the employer to decide on the pay and benefits awarded to staff members. Paying low wages has both a positive and negative effect that is explored in this paper in order to have a clear perspective on the full impact major corporation’s play on salaries. Wage refers to the sum of money an employee earns per unit of labor. A worker's salary in a company is determined by business policies, level of experience, the occupation and the country where the establishment is located. Maximizing revenue is top of the agenda of a majority of companies, and paying employee’s minimum wage aids in achieving the goals of the organization. The minimum wage in some countries attracts or repels corporations due to the cost of doing business. The result of some countries having lower cost in wages attracts a great number of industries to base their operations overseas...
Words: 591 - Pages: 3
...Project: Minimum Wage There are many topics of debate that exist throughout the country. These topics encourage people to get involved in order to promote change. One particular issue of debate is the topic of minimum wage. Minimum wage is defined as the lowest amount that employers can legally pay their workers per hour of labor. It helps to eliminate sweatshops and it helps to guarantee that people are getting paid fairly for the amount of work that they are performing. In addition, minimum wage was also established to protect young workers and minorities from getting underpaid. Therefore, minimum wage should be increased in order to keep pace with the standard of living and to keep people out of poverty. Minimum wage...
Words: 1692 - Pages: 7
...Minimum Wage…Is it Really Helping the Economy Depending on who you ask, there are several opinions to whether there should be an increase in minimum wage. Some believe there will be economic growth because low-wage workers who will then spend the money on things like housing, food, and gas. This boost in demand for goods and services will help stimulate the economy and help create opportunities. Its also believed that increasing minimum wage will decrease poverty. A modest increase in minimum wage of 10% could decrease poverty by 2%. (Bernstein) The other side of the argument is raising minimum wage creates inflation and forces layoffs. From an economic standpoint, inflation can be caused by any number of new or increased costs of production,...
Words: 1009 - Pages: 5
...Economic affect Minimum Wage In the America, the federal government upholds a national minimum wage to protect the purchasing of ordinary workers. It seems good that the government protects your purchasing power by adjusting the minimum wage with respect to the increase rate. For many decades now, there have been heated debates concerning minimum wages and increased in those wages. Most people have a tendency to assume that when the minimum wage is increased people will benefit. People do not stop to think of the consequences that come from minimum wage increases. The general population merely assumes that people should make an adequate amount of income and never stop to consider the consequences, nor do they stop...
Words: 735 - Pages: 3
...The effects of introducing a living wage of £7.20 per hour on the labour market can be examined using the data known about the introduction of the minimum wage in April 1999. The living wage behaves like as a price floor as the government intervenes to maintain wages above the equilibrium wage, which is represented as the current minimum wage of £6.70. The diagram represents the theoretical effects of the policy: We can infer that due to the new policy, there are fewer workers demanded than there are supplied leading to a worker surplus. Hence the living wage is binding on the labour market as wages can’t drop below £7.20. Businesses are generating the same profit, while providing higher wages, so demand for workers shrinks. Employees work effectively and efficiently due to the...
Words: 819 - Pages: 4
...When minimum wage was created, it was never meant to be a living wage; it was meant to be a starting wage for people with little to no skill and a way for people to be compensated fairly for working overtime. “A minimum wage law is, in reality, a law that makes it illegal for an employer to hire a person with limited skills” (Friedman). Many minimum wage workers are teens, minorities, people with mental disabilities, and people with little to no job experience. A mandated minimum wage will not lift all minimum wage workers out of poverty or bring them up to the “standard of living”. Instead it will create an artificial price floor, a government imposed price control on the amount of dollars, per hour, an employee can work for. The neoclassical...
Words: 355 - Pages: 2
...Why should minimum wage stay the same? Minimum wage shouldn’t be risen because of the value of the dollar. Not only would the value of the dollar go down but, more people would be unemployed. “The rich will get richer while the poor get poorer” as said by William Henry Harrison on October 1st, 1840. With the minimum wage going up, prices will go up and the economy will collapse because of inflation. The economy will be unstable and homeless people will be receiving less money. In 2008 the economy collapsed, badly, we can refer to what happened then to what will happen now. People will work less and get more and think they are set for life when they are very rich. Off of basically doing nothing and getting 15 dollars an hour and having a 48...
Words: 473 - Pages: 2
...what job pays more than others? Is working at, above or below the minimum wage important? Many companies are increasing pay for low-wage workers, in tune with the amount of people arguing for a higher minimum wage standard. These companies include McDonald's, Walmart, TJ Maxx, The Gap, and Target, according to an article from Forbes Magazines. First, with big companies increasing their wages above the minimum wage, some people believe that other companies should also raise their wages above the minimum wage so that they won’t have their employees seeking jobs from these bigger companies. Companies should attempt to find a balance between the wages they can supply and meeting the needs of workers who are attempting to provide for themselves or their families. The cost of goods and services have increased, and with this, it is harder for people to create sustainable living circumstances with the current minimum wage. An article named “Our Research: Minimum Wage” claims “[this] will enhance consumer spending, which can increase the demand for small firms’ good and services and boost their businesses’ bottom lines while strengthening the economy” (Small Business Majority)....
Words: 646 - Pages: 3
...Minimum wage is the lowest amount of money that a person can be legally paid. As of January 1st, Georgia’s minimum wage was $5.15 an hour (National Conference of State Legislature). The federal minimum wage is $7.25 an hour, but the price remains $5.15 in Georgia for the people who are exempt from the federal Fair Labor Standards Act (Johnson). Minimum wage should never be as low as it is now. The minimum wage should be increased because of the increase in the cost of living, it would spur job growth, and it would reduce inequality. Minimum wage is supposed to cover the cost of living in today’s society. As of today, the minimum wage is not enough to cover housing. When the price for these items rose, the minimum wage should have risen as...
Words: 787 - Pages: 4
...Among the hot topics in Washington, increasing the federal minimum wage is seen as both a necessary measure, or the single largest cut to small business of this era. Politicians debate but a general consensus by renowned economists are clear: Increasing the federal minimum wage to $10.10 would be beneficial to the economy, especially in the lower and middle classes. The individuals making wage are not overwhelmingly teenagers. A majority of the people making under $10.10 are women, average aged 35 and support more than one person (“Minimum Wage, Who Makes It?”). Because of these slanted figures compared to non-minimum wage jobs, increasing the federal minimum wage to $10.10 has the capability of bringing up the salary of 28 million Americans,...
Words: 954 - Pages: 4
...A minimum wage increase will send low-income workers in poverty because many may be forced to leave the labor force, or many will qualify for lower only paying jobs. For the workers who can sustain their job after the increase, some will see earnings increase. These increases may persuade younger workers to leave school to earn a paycheck. Economists have expressed that many people living in poverty do not work and thus cannot benefit from a wage increase (Gundling). A minimum wage increase will consequently affect the least experienced and educated Americans, putting low-income families out of work and as a result in poverty (UC Davis Center For Poverty Research). High labor costs will result in fewer job offerings. In order to maintain...
Words: 754 - Pages: 4
...Battle to Raise Minimum Wage Lyvonda Wadley Baker College The raising of minimum wage will have a negative impact on the economy while $15 minimum wage increase ripples across the states. In the article The Hamilton Project explains, “U.S. policymakers continue to engage in an active debate over the minimum wage. Calls for minimum wage increases—at the federal, state, and local levels—are based on the premise that rises in the minimum wage will improve the economic well-being of low-paid workers (Kearney, M. S., & Harris, B. H. (n.d.)... Minimum wage increase would actually have a deleterious effect on the economy, low-skilled workers, unemployment, and surrounding businesses. “Congress instituted the minimum wage in 1938 as part...
Words: 915 - Pages: 4
...Ty Eggen “But raising the minimum wage to $15 per hour is not the way to get wages up in this country. In fact, it would cause perhaps as many as a million people to lose their jobs.” This was stated by Jonathan Trugman in an article published on November 24, 2015 on New York Post. The minimum wage in America should not be raised, but instead it should be kept at where it is currently at. If the minimum wage is raised, it could cause many various problems throughout the country, affecting all who live here. Today we will cover the problems that would arise if the minimum wage was raised, next some solutions and alternatives to not raising the minimum wage, and finally, the benefits of keeping the minimum wage where it is at right now. First,...
Words: 759 - Pages: 4
...Has one considered the long term effects of raising the minimum wage? Over the past decades, minimum wage has increased many times ever since the 1938 Fair Labor Standards Act (FLSA) was set, along with President Roosevelt's New Deal ("Minimum Wage"). Its purpose for this law was to enable citizens to have a living wage when the Great Depression occurred. When living costs increase, the minimum wage will have to rise also. Increasing the minimum wage even more can become a risk factor for the economy. By raising the minimum wage, there will be long term consequences that will hurt businesses, increase poverty, and lead to fewer job opportunities. The demand for a higher wage will hurt businesses. When companies are in jeopardy, it will lead...
Words: 539 - Pages: 3
...argument advanced in favor of raising the minimum wage is that it would improve the overall standard of living for minimum wage workers by providing them with a more appropriate income level to handle the cost of living increases. A boost to economic growth is another potential advantage of increasing the minimum wage, as consumer spending typically increases with increases in wages. A higher minimum wage would put more discretionary dollars in the pockets of millions of workers, money that would then flow to retailers and other businesses.However, opponents of an increase argue that raising the minimum wage would likely result in wages and salaries increasing across the board, thereby substantially increasing operating expenses for companies that would then increase the prices of products and services to cover their increased labor costs. Increased prices mean a general increase in the cost of living that could...
Words: 992 - Pages: 4
