...The current debate of raising the minimum wage at a national level is one of the biggest things legislatures are talking about nation wide. Because it has been slightly put down at a nation level, legislators at a state level are trying to push higher wages through. The effects of raising the minimum wage range from inflation to unemployment. Angel-Urdinola, Diego. "The Impact on Inequality of Raising the Minimum Wage: Gap- narrowing and Reranking Effects." LABOUR: Review of Labour Economics & Industrial Relations. Jun2004, Vol. 18 Issue 2, P317-327. Wiley Blackwell, June 2004. Web. 19 Feb. 2015. In this research paper, Angel-Urdinola uses examples from other countries to prove why raising the minimum wage isn’t effective. He says that raising...
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...Smith, Advertising Department Supervisor From : Jason Vu, Advertising Associate Date : March 24, 2010 Re : New Approach for Extra Income As a consequence of the recent increase in minimum wages, there is an increase in the discretionary income of our current advertising base. People with more money tend to spend more. Our current advertising approach does not take this into consideration. This is a proposal to modify the approach in our advertising strategy so that we can take advantage of the coming shift in our advertising base and enhance our advertising revenue by expanding our potential client base. The rationale behind the proposal and its implementation will be elaborated in the following report. When people have achieved basic survival needs such as food, shelter, and relatively secured physical and financial safety, they seek to attain things that they haven’t yet possess, such as status symbols or a sense of belonging to an exclusive group. If we can encourage our existing advertisement consumers to spend their extra income, hence shift the demand of our current advertising base to consume more upscale products, then we stand to gain an expanded and more profitable set of ads buyers. This project is a market study in potential new products in which ads targeted for the new minimum wage consumers segment can be created. This project will determine the current advertising consumers’ income. The result of this project will be used in devising a strategy to create and...
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...Surviving the $15 Minimum Wage: McDonald’s Struggle to Remain Competitive Rasel Ahammed Dario Colon Gonzalez Gregory A. Delts Valerie Demas Keller Graduate School of Management Professor Vera Daniels MGMT 530: Managerial Decision Making November 27, 2015 Table of Contents Page 3: Executive Summary Page 4: Introduction-Overview of Decision Problem Page 4: Problem Statement Page 5: Objectives Page 6: Summary of Key Objectives Page 6: Alternatives Page : Description of Alternatives Page : Selection Page : Consequence Table with Original Values Page : Ranking Alternatives Page : Scoring Model: Title Page : Weighted Scoring Model: Title Page : Consequences Page : Risk Profile: Title Page : Implementation, Monitoring, and Control Page : Timeline Page : Summary Page : Works Cited Executive Summary McDonald’s restaurant chain, long considered an industry and community leader, has begun to experience a reversal of its corporate fortunes. They have seen a steady decline in total profits, sales, and a weakening of their corporate image. To add to their troubles, New York State Governor Andrew Cuomo, and a growing number countrywide are in the process of approving a bill almost doubling the minimum wage for fast food workers from $8.75 to $15. The problem is, knowing that there will be a dramatic increase in salary expenses in the next few years, how can McDonald’s alter its business practices...
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...The first minimum wage ever established in Ohio was set at $.25 an hour (about $4 now) in 1938 and today it is $7.25. The average cost of a house in 1938 was $4000 (about $64,500 now) and today it is $245,000. You may glance at these and think that the higher expenses aren’t bad, the minimum wage is also higher. Nevertheless, the average earnings for hard working citizens has not changed. Prices are increasing, but most people’s stipends aren’t. Consequently, they are having to pay greater sums to live while the minimum wage workers keep a relatively same ratio between receiving and spending. To solve this dilemma, the minimum wage should not be changed. In short, this would be the best solution to this obstacle. However, there is a plethora of things that could be done to better benefit the public rather than simply not changing the minimum wage and each of these solutions come with pros and cons. First off, raising the minimum wage would not make the lives of the people living off of minimum wage any better than they are now. The accent would devise a small amount of...
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...social economic force. It shall protect the rights of the workers and promote their welfare” (Philippine Constitution Art. II, Sec. 18). Ideally, the law must side with the workers since they are practically powerless and voiceless in the face of capitalist industry. Labor exploitation is the inhumane cost of gaining national economic prosperity which is truly appalling and must be condemned as an ethical response to this unjust act. This paper aims to explain and provide an exposition of the exploitation of the labor sector and that these acts of exploitation must be greatly opposed. The concrete acts of labor exploitation that are opposed in this paper are contractualization, circumvention on provision of employment benefits, inhumane wages and other unfair labor practices. The Agony of the Labor Sector: Context and Issues at Hand Why and how does labor exploitation occur? The very injustice done to the labor sector begins with the problem of the materialistic conditions of society. There is a phenomenal misappropriation of capital, land and other material goods which in turn give rise to an imbalance distribution of power to the population. Due to the accumulation of power and wealth to only a small portion of the population, there is an imbalance in terms of power and the means of selfdevelopment. The...
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...should raise the minimum wage incrementally to cover the increased costs of living, increase productivity, and reduced turnover. BACKGROUND: The federal government began regulating wages with the Fair Labor Standards Act of 1938. This established a price floor of what we know to be minimum wage, it also defined the standard work week, and guaranteed time and a half for overtime hours. The original purpose of stabilizing the minimum wage was to, “protect all employees from any alterations in the economy” (Andrade). Currently 29 states and Washington D.C. have set their minimum wages above the federal minimum of $7.25. People argue that a high minimum wage hurts small businesses and inflates...
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...the biggest issues that are going on today is should we raise the minimum wage? According to Bureau of Labor Statistics, “In 2011, 73.9 million American workers age 16 and over were paid at hourly rates, representing 59.1 percent of all wage and salary workers. Among those paid by the hour, 1.7 million earned exactly the prevailing Federal minimum wage of $7.25 per hour. About 2.2 million had wages below the minimum. Together, these 3.8 million workers with wages at or below the Federal minimum made up 5.2 percent of all hourly-paid workers” (Characteristics of Minimum Wage Workers In 2011, 2012). According to the data, there are very few people getting paid at or below the federal minimum wage. Yet, people are complaining that the current wages are not enough. With wages at the current state, people are still living in poverty. With the new Fair Minimum Wage Act of 2015 (H.R. 1010), the minimum wage will rise from $7.25 to $10.10. The debate is whether the increase in wage will either benefit everyone (employees and businesses) or will this increase have negative effects and create more issues instead of fixing them. Will we end up paying more to get less? Background Here is some history on H.R. 1010 or better known as the Fair Minimum Wage Act. “The federal minimum wage originated in the Fair Labor Standards Act (FLSA) signed by President Franklin Roosevelt on June 25, 1938. The law established a minimum wage of 25 cents per hour for all employees who produced products shipped...
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...http://www.thefiscaltimes.com/Articles/2013/08/06/Are-the-Fast-Food-Workers-Right-About-Minimum-Wage Summary of the article: The article is focused in a current controversial issue that involves the fast-food industry and how right are their workers about increasing their minimum wage to $15. The article mentions how a basic living standard is what fast- food workers make to support themselves. The labor Bureau reported that 28 percent of core front-line fast-food workers regularly work 40 or more hours per week, compared to 75 percent of the country’s workforce as a whole. More than two-thirds of workers across the country are over the age of 20, and 68 percent are the main wage earners in their families, and more than a quarter of Americans working in fast-food restaurants are parents, raising at least one child. People who work in fast-food jobs are paid so little that having to rely on public assistance is the rule, rather than the exception, even for those working 40 hours or more a week. Fast food is a $200 billion-a-year industry. The wage for core front-line workers at fast-food restaurants nationally is $8.69 an hour. Only 13 percent of the jobs provide health benefits. The fast-food industry’s low wages and meager benefits, often accompanied by part-time. The article also explains that on the other hand the food industry could react differently to this demand reducing the headcounts. Eventually, putting pressure on those employers will emerge that have trained...
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...Overview of the Federal Minimum Wage The Fair Labor Standards Act (FLSA), a law that guarantees employees and youth a fair minimum wage and overtime pay. It is regulated by the Wage and Hour Division (WHD) of the U.S. Department of Labor (DOL); it mandates employers to pay all nonexempt employees a federal minimum wage no less than the determine amount set by the government (U.S. DOL, 2011). Unfortunately, the federal minimum wage still sits at $7.25 per hour and has remained the same since George W. Bush signed a law to change it on July 24, 2009 (Risher, 2013; U.S. DOL, 2011). So, why did so many government officials decline the increase of the federal minimum wage and why do they fear the positive impact that the increase will have on America? This paper intends to briefly discuss six laws, all pertaining to federal minimum wage introduced to the House of Representatives within a year and highlight one member of the senate who disapproved the law for passing. In addition, this paper will briefly point out statements made about why some Senators chose to decline the bill; and finally, this paper intends to briefly explain any legal issues preventing the wage increase and implications for management. Start of Hope: Minimum Wage Fairness United States senators and representatives have introduced numerous federal minimum wage bills to the House of Representatives in order to amend the Fair Labor Standards Act (FLSA) during their term. These bills were designed to either...
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...with your own. The relationship between business and labor is a partnership in the enterprise of making money. What is fair when it comes to work? Labor relations are generally defined as relations between management and workers. They are also called business relations. Workers or group of workers are represented by trade unions. Labor relations may take place on different levels such as regional, national, international. The main challenge for such relation is ability to adapt to emerging changes. The world and technology develops very fast, so do relations between workers and management. Trade unions (also called) labor unions are organizations of workers who united to defend their rights, solving problems in the industry such as wages, working hours, bonuses, Union represented workers and negotiate with the management on behalf of the workers. Such relations are usually accompanied by tensions and conflicts and company owners usually want to earn more and pay less. Workers are willing to work in better conditions for a better salary. Labor unionism in the United States is an expression of the American democratic spirit working itself out in industry is hardly to be doubted. Its beginnings coincided with the period when the free colonies were establishing state governments, and the principles of the federal Constitution were subjects of great political debate. It developed stretch in Jefferson's administration, and grew to a full fledged labor movement during the...
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...CHAPTER 21 UNDERSTANDING THE BUSINESS ENVIRONMENT: THE ECONOMICS OF REGULATION CHAPTER SUMMARY This chapter focuses on the economics of regulation. It starts by discussing why it is important for managers to understand the regulatory process. Three potential reasons for government intervention are presented (defining and enforcing property rights, redressing “market failures,” and redistributing wealth). The primary focus is on the “economic theory of regulation” which posits that regulation is demanded by special interest groups and supplied by self-interested politicians. Rational free riding on the part of voters allows well-organized coalitions to pass regulations that redistribute wealth in their favor. The chapter ends by discussing the managerial implications of this analysis and by presenting a case study World Motors. CHAPTER OUTLINE IMPORTANCE OF REGULATION TO MANAGERS Managerial Application: Europe Relaxes Its Labor Laws ECONOMIC MOTIVES FOR GOVERNMENT INTERVENTION Defining and Enforcing Property Rights Managerial Application: War and Hunger Managerial Application: Multinational Counterfeiting Redressing Market Failures Externalities Managerial Application: Alternative Dispute Resolution Managerial Application: Frivolous Lawsuits Managerial Application: Direct and Indirect Costs of the Food and Drug Administration Public Goods Monopoly Historical Application: Interstate Commerce Commission ...
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...Abstract The ethical principles and practices of the least and most corrupt governments, as determined by Transparency International, are as distant from one another as matter is from anti-matter. New Zealand and Denmark are hands down more ethical than their polar opposites, Somalia and Afghanistan. This paper attempts to paint a picture of how distant and discuss the variety of contributing factors, from minimum wage to deep seated and institutionalized cultural mores. Article Corruption, as defined by Merriam-Webster’s online dictionary, is “an impairment of integrity, virtue or moral principle.” Equally relevant is the definition of government: “the organization, machinery, or agency through which a political unit exercises authority and performs functions..” In the scope of this paper, I intend to discuss the impact of ethical conduct, or lack of, as it relates to the degree of corruption evidenced in the conduct of governments. In short, is it the government which is corrupt, or the persons that comprise the government? Further, what impact if any does the type of government play in the degree of corruption displayed in a given government’s actions? And last, if the actions of a government which is described as corrupt are in keeping with societal norms of the region, is it right to describe them as corrupt by using a foreign measurement? And the winner is….New Zealand. According to the most recent Corruption Perception Index (CPI) report provided by Transparency...
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... BUSX 301, section 012 Amanda Gates March 21, 2012 Business Analysis for Cheesecake Factory Executive Summary Cheesecake Factory’s mission statement is to create an environment where absolute guest satisfaction is their highest priority. The vision statement is that through a shared commitment to excellence, they are dedicated to the uncompromising quality of their food, service, people and profit, while taking exceptional care of their guests and staff. The Cheesecake factory is doing really well in satisfying their mission by providing a broad menu offering to satisfy their guests, but they are not managing their profit and expenses well as stated in their mission statement because over the years expense growth outpaced revenue growth as shown by the SWOT analysis below. Therefore Cheesecake Factory needs Consultants to help them better manage their revenue and expenses, in order to increase their profits, because the purpose of a business establishment is to make profit. SWOT Analysis The SWOT analysis gives us a summary of the company’s strengths, weaknesses, opportunities and threats. The information below would also include the competitive climate, growth strategy, and what differentiates Cheesecake factory from its competitors and its brand identity. Cheesecake factory’s extensive menu and...
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...Minimum wage in Hong Kong Table of Contents 1. Part 1: Minimum Wage law in Hong Kong 2 2. Introduction 2 3. Minimum Wage – Economic Theory 2 4. Introduction in Hong Kong – May 2010 3 5. Impacts – 15 months later 5 5.1. Employment 5 5.2. Firms profitability 6 5.3. Inflation 7 6. Economic cycle considerations 9 7. Part 2: Housing issues in Hong Kong 9 8. Introduction 9 9. Housing situation in Hong Kong 9 10. Housing Demand in Hong Kong 11 11. Housing supply in Hong Kong 14 12. The Current Government Policies 15 12.1. Policy 1: 15 12.2. Policy 2 16 12.3. Policy 3 16 13. Conclusion 17 14. Bibliography 18 Part 1: Minimum Wage law in Hong Kong Introduction The Hong Kong Government introduced of a Minimum Wage in Hong Kong in May 2011, in response to increased incomes disparity in the territory. It uses economic theory to predict certain impacts such as level of employment, profits of firms, inflation effect and potential positive effects on the economy in general. Minimum Wage – Economic Theory Economic theory tells us that when artificial price floors are introduced in the market, they force prices to remain above the level that balances supply and demand. The same is true with minimum wage; it raises the quantity of labor supplied and reduces the quantity of labor...
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...overall conclusions and recommendations from the collected evidence. After reviewing this report, please let me know if you have any questions regarding the analysis. I would be more than happy to assist and discuss with you any issues you want to bring up. You can reach me at pbcoghi@gmail.com Cultural and Personal Impact of Mandated Maternity Leave Prepared By: Pedro Coghi, Student Date: 7/26/15 Prepared For: Jennifer Riske, Professor Technical Reporting - Summer 2015 Table of Contents Executive Summary 4 Introduction 6 Background of Feasibility Question 6 Purpose of the Report: 6 Scope of the Report 6 Methodology/Sources of the Report 6 Discussion of Findings & Results 7 What is Paid Maternity Leave? 7 Why Should We Care? 7 Benefits for the Child 8 Benefits for the Mother 9 Costs 9 Not a First World Problem 9 Positive Outcomes 10 Negative Outcomes 11 Benefits of changing? 11 Conclusion 12 Recommendations 12 References 13 Executive Summary The purpose of this recommendation report is to show the impact and significance of paid maternity leave. This should be a...
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