2.1.4 Increase consumption, minimum wage will increase the spending capability of workers which will increase the consumption level. Diagram of wage market:.2 Minimum wage, minimum wage is defined as the lowest hourly, daily or monthly salary that employers may legally pay to workers. Workers that get minimum salaries will be able to provide for their own needs and depend less on government aids. 1, 2018, it's 14/hour in Seattle, Washington (or.50/hour, plus at least.50/hour in tips and benefits) and 15/hour in Sunnyvale, California, for instance. In 2014, President Obama proposed increasing the federal minimum wage from.25.10. This would raise the cost of living and create a need for further minimum wage increases.
Why the Minimum Wage Should Not Be Raised. (Though a minimum wage increase wouldnt happen all at once, lets imagine it has for the sake of simplicity. As of July 2017, 27 cities had also passed laws raising the minimum wage, although some states subsequently passed legislation requiring cities to adhere to statewide minimums. When workers earn higher wages, they rely less on governmental safety net programs. In 2018, the highest state minimum wage was.50/hour, in Washington state, followed by Massachusetts and California at 11/hour. Only 20 of minimum wage earners live beneath the poverty line (24,250 for a family of 4 two-thirds of them make twice this amount. Instead of putting off the minimum wage issue until workers fall further and further behind the minimum wage should be raised essay and need large wage increases (a political football the country would benefit from pegging the minimum wage to inflation and getting on with business. Its confusing diverse viewpoints, regional differences, and political positions surround this polarizing debate. In addition, some local municipalities have initiated minimum wage increases for their location. Is the minimum wage too high? When the minimum wage is above the market equilibrium, the demand and supply of labor is not balance as the supply will be more than the demand. Whether or not the federal minimum wage should be raised again.
Currently, 29 states and the District of Columbia have a higher minimum wage than the federal rate. Your entire staff makes the same amount and the bakers assistant now makes as much as the baker! Needless to say, smart businesspeople should stay abreast of the ever-important minimum wage issue. Having to go through a lot of sources can be a daunting task that lasts the minimum wage should be raised essay hours. To be fair, lets also say that the economic stimulus effects of this increase have also taken place overnight.). Salaried employees like executives, administrators, highly-trained professionals, and computer programmers (as well as outside salespeople) may qualify for fsla exemptions. Though some people would lose their jobs, the working poor as a group would benefit. Economy without reducing the number of available jobs. Business leaders of all stripes spend substantial time and effort understanding the wage question especially the differences in federal and state mandates. So far, 29 states and several urban areas have set minimum wages higher than the federal minimum, typically to address higher-than-average costs of living. The most recent update to the federal minimum wage was in 2009 when it was raised.25 an hour.
If youre running tight margins, how can you afford to stay in business? As the extra supply of labor is not wanted by companies, it will cause unemployment when minimum wage is present. Opponents believe that increases to the minimum wage will place a burden on employers, especially small companies, resulting in slower the minimum wage should be raised essay growth and decreased levels of employment. This raises a sticky question: is it appropriate to raise unemployment to help people out of poverty? In a perfect competitive market, the assumption is that there are many firms which offer identical jobs to workers with the same set skills. Lower unemployment and higher wages increase tax revenues. The worker will lose the wage gain to inflation because prices on the market are higher and require more money to buy the same amount of goods (Lemos, 2007).
Would creating more jobs (and more full-time jobs) bring more people into the labor force and raise the national standard of living? What is your states minimum wage? 1) No 2) Low wage jobs are typically not supposed to be full time permanent ople are turning low wage jobs into full time permanent positions-the problem is in corporations, not wages. Conversely, five southeastern states have not set state minimum wages. As the low-income group of workers will have more money to spend on goods, they will spend more and increase the consumption in the country which will help the economy of the country (Bauer, Kluve, Schaffner, Schmidt, 2009).