...Raising minimum wage would change the way people live. The increase would make living conditions better for people who don't have good ones. People also wouldn't have to struggle to provide for their families and for themselves. The increase would help people enjoy life. Although increasing minimum wage could help people provide for their family, it could also cause many people to lose their jobs. Increasing minimum wage would help people live is. People also wouldn't have to struggle to provide for their families and for themselves. The increase in minimum wage would help people enjoy life. Although raising minimum wage would hen better conditions. The article" The Pros and Cons of Raising Minimum Wage" says that," Increasing minimum wage raises the standard living for impoverished people." This means that people wouldn’t have to worry about getting a job, or worrying about if they have enough money to put food on the table. People would worry less if the minimum wage was raised. To...
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...regions within the United States. They also take up the responsibility of educating people on what they do and how they do it through many different channels of media, such as: speeches, publications, web sites, and educational seminars. What are the factors that would influence the Federal Reserve in adjusting the discount rate? When it comes to the Federal Reserve adjusting the discount rate there are a few factors that play an influential role. The current state of the economy and the direction that the economy is moving are the biggest factors. Should the economy be growing too fast, prices becoming inflated, and a noticeably large amount of money in the economy then the Federal Reserve would want to slow down the economy a little by increasing the discount rate, or interest rate. This increase would help to take some money out of the economy which will slow down economic growth and reduce price inflation. If...
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...believe that their pay isn’t enough and should be raised to support themselves and others. But why should minimum wage be raised? I believe otherwise because the US raising minimum wage can cause problems for us, don’t you think? I believe minimum wage shouldn’t be raised. I believe that raising minimum wage can destroy businesses. The government raising minimum wage can destroy those small companies that already cannot afford to pay their employees more than the minimum wage. No company would want to lose their business because they are trying to pay employees more when they know they can’t afford it. If a person really thinks about it they will be able to see that if businesses did start to pay more than the minimum wage many people can lose their jobs. In the article, For the first time, majority of states have minimum wage above federal level, Charlene Conway a co-owner of the Carousel Family Fun Center will have to lay off staff members to be able to pay more money to the employee’s “ She might have to layoff several members of her 40 person staff and totally eliminate the younger workforce”...
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...RESEARCH PROPOSAL TO NEW APPROACH FOR EXTRA INCOME Submitted to Andy Smith Advertising Department Supervisor Thomas Advertisements Company Prepare by Jason Vu Advertising Associate Thomas Advertisements Company March 24, 2010 THOMAS ADVERTISEMENTS COMPANY MEMORANDUM To : Andy 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...
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...Some people may think raising the minimum wage will reduce poverty, but guess what it really doesn’t to a point. Let me break it down for you, you see raising the minimum wage will help out, but what else is changing when you raise the minimum wage? Well when you raise the minimum wage something else changes with it. It actually redistributes income among poor families, it puts others out of work, and it doesn’t put low-wage workers out of work. Raising the minimum wage will not reduce poverty. Admittedly, Raising minimum wage increases in tax income, help bigger families, and increase in annual earnings . “In 1998, a typical family of four with a full-time, minimum -wage worker had income above the poverty line when food stamps and EITC benefits were considered” ( Furman, and Parrot). Food stamps and EITC benefits are considered for a big family of four because it will become hard for them to live with because you have to buy food, pay bills, mortgage/rent (etc). Raising the minimum wage could help out a little, but not a lot. You see raising the minimum wage will only help get big families with food and more. However once you raise the minimum wage other things would have to either change or something would have to go. other people’s pay may go up or you would have to try to recalculate how everyone’s pay is being...
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...third quarter of 2008. The second significant point was the second quarter of 2009, when the growth rate of average earnings rose above the CPI inflation, and the CPI inflation followed the trend of growth rate of average earnings. 3. Exchange rate is the price of one currency in term of another. In this case, the falling of sterling (the UK pounds) means the purchasing power of the UK citizens has fallen because the imported raw material and components are more expensive for the UK firms; whereas the exports are cheaper for consumers from foreign countries. The price of raw materials and components increases, therefore the cost of production increases. According to the AS/ AD diagram below, AS1 shifts to the left to AS2 and causes the Price level to rise from PL1 to PL2. In the same time, the RNO fallen from Y1 to Y2 this represent a negative economic growth in certain period. The cost-push inflation is the process of rising prices is initiated and sustained by rising costs, which pushed up the cost. Another of inflation is called the demand-pull inflation, it occurs when the demand exceeds supply. Refer to the following diagram, AD shifts outwards form AD1 to AD2, and the price level shifts from PL1 to PL2. The demand pull...
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...The minimum wage increase wouldn’t just affect teens working part time jobs; but people and adults trying to earn a living. Tsedeye Gebreselassie states, “These aren't only teens trying to make some pocket money. Increasingly it's adults who are using this money to support their families." The ones earning minimum wage are the ones who are trying to aid their families. With the minimum wage as it is, a majority of people do not make enough money annually to not be in poverty. According to an article written by David Cooper, “At the current federal minimum wage of $7.25, a parent who works full time, year round, does not earn enough to be above the federal poverty line.” This means that if the minimum wage was increased, it would help so many families to escape poverty and live comfortably. Also, the average family of four with two workers being paid the minimum wage, will end up about $8,000 in debt per year (“Time For A Raise”). The minimum wage is not enough, and increasing it will ultimately lower the poverty...
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...that it’s my goal to get more people back to work and slow down the inflation rate. Kathy Lee believes that raising taxes and reducing government spending is the best solution, but I believe that this will result in tax avoidance and tax evasion; which will deepen the recession in the United States. Patricia Lopez recommends that the Feds should leave interest rates alone and too strongly sell bonds and raise the bank reserve requirement. Although this is an interesting idea, raising the reserve requirements forces banks to withhold a larger portion of their funds, therefore reducing the money supply. It will ultimately restrict the bankers’ ability to make more loans, and those banks that were already operating just barely above the old reserve requirement will be forced to re-work their existing loans to meet the new restrictions, which will lead to raising interest rates. Allison Tanney believes that you should focus on increasing government spending and lower taxes and have the Feds work on buying bonds, raising interest rates, and if only necessary, raising the reserve requirement. Unfortunately, I do not believe that raising the reserve requirement is a good recommendation due to the fact that this could cause the banks to lessen their loan capabilities due to less money being available to loan to consumers. Furthermore, this will lead to a more restrained money supply and as I see it this will result in higher rates for the consumers. Raymond Burke recommended that...
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...14.3% of Americans were living in poverty. Several years later, the government is still trying to get the Economy back on its feet. Democrats say that raising the minimum wage will increase earnings for millions of workers leading to cash flow which will stimulate the economy. Republicans say that although increasing the minimum wage would help many Americans by increasing their earnings, many Americans would also experience job loss. Increasing the minimum wage would help the economy greatly but could also hurt many of the low-income families. Rex Huppke of the Chicago Tribune, brings up a great point stating that raising the minimum wage is not an effective way to address the poverty issue America faces. When raising the minimum wage, not only will the families living in low-income housing be affected, but also young adults with their first jobs and teenagers working after school. This is a concern because these students aren’t the ones who need the help; it is the families with 5 children who...
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...2014, and the second on January 1, 2016. Democrats back the bill saying it will help families in this economy, and it will also stimulate the economy because people will spend more money. Governor Jerry Brown said that this was an “overdue piece of legislation that would help working class families.” Republicans say it will hurt small business and hurt job growth. The California Chamber of Commerce called it "a job killer," and the California Restaurant Association said it was a "blow to small businesses" because they were thrown off by the proposal of the raise in minimum wage (“California to raise minimum wage to $10 by 2016,” 2013, para. 10). The maximization in the raise of the California minimum wage will help to decrease poverty in California. Even with the tax relief that was put in place for a family of two children, most families are still below the poverty line because they are working full time jobs earning minimum wage (“Obama gets behind democrats' $10.10 minimum wage proposal,” 2013, para. 10). Most families that are working only earning minimum wage are barely making ends meet to support their families. Hiking up the minimum wage will help improve the lives of millions of workers and their families (“Obama gets behind democrats' $10.10 minimum wage proposal,” 2013, para. 9). Raising minimum wage will help reduce poverty by helping the working American to earn enough to get by, for their selves and their families. Nearly 30 million American workers would get a raise...
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...Chapter 15 Homework Solutions 2. During Christmastime, when the public’s holdings of currency increase, what defensive open market operations typically occur? An increase in currency holdings causes the currency ratio to rise and the money multiplier to fall. As a result, there will be a decrease in the money supply. To maintain the money supply, the Fed must make a defensive purchase of bonds on the open market, raising the monetary base to counter the decline in the multiplier. 6. “The only way the Fed can affect the level of borrowed reserves is by adjusting the discount rate.” Is this statement true, false, or uncertain? Explain your answer. This statement is false. The Fed could affect the level of borrowed reserves in two ways. First, they could directly limit the amount of discount loans an individual bank can take out. Second, they could reduce non-borrowed reserves to such a point that even with a fixed discount rate, borrowed reserves will rise, as outlined in the diagram below: In the diagram above, the Fed cuts non-borrowed reserves by making open-market sales of bonds. This causes the federal funds rate to rise above the discount rate, prompting banks to borrow from the Fed. As a result, the total reserves held by banks (R2) will be equal to NBR2 supplied by the Fed and reserved borrowed directly from the Fed (BR). 7. Using the supply and demand analysis of the market for reserves, show what happens to the federal...
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...Minimum wage in California is predicted to increase up to $15.00 an hour by the year 2023. Most people fighting for an increase in minimum wage are restaurant workers, especially in the fast food industry, dissatisfied with the current minimum wage of about $10.00. Economists, on the other hand, oppose raising the minimum wage for numerous reasons, such as an increase in unemployment, the effects it has on minors, the effects of the free market, and the “-ism”’s that increase. The largest and most often point argued by economists that oppose raising minimum wage is that it increases unemployment. Statistics show that “...in 2013, a $1 increase in the minimum wage was associated with a 1.48 percentage point increase in the unemployment rate…”...
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...worth $7.93 in today's dollars” (Sklar 1). Today’s minimum wage is roughly 8.6% lower than almost 60 years ago. In a 40 hour workweek, workers earn $27.20 more than today. That might not seem like much, but it quickly adds up. People are unable to get by on $7.25 an hour. Some can’t even get by on that. In addition, even President Barack Obama agrees that the wage should be raised. In his state of the union address, he said “A higher minimum wage, these ideas will make a meaningful difference in the lives of millions of families” (Obama 1). Even the president - someone who makes $475,000 a year believes the rest should be helped. Less than $20,000 is simply not enough. Raising the minimum wage can help many. In an article by Mike Korzal from the Washington Post, Korzal claims, “Using this as an estimate, raising the minimum wage to $10.10 an hour, as many Democrats are proposing in 2014, would reduce the number of people living in poverty by 4.6 million” (Korzal 3). This shows how many lives - 4.6 million to be exact - spared from the terrors of poverty. Approximately the population of Louisiana - 1.5% of the U.S. population - without the issue of poverty. With Poverty reduced, more and more can live the American Dream. For some people, the security of tomorrow isn’t promised. By...
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...Arguing About Work Values The arguments for and against raising the minimum wage are almost unavoidable in the labor market, with each side having individually strong points. Advocates say that anyone who works 40 hours a week or more deserves to earn a decent living wage and get out of poverty, while opponents argue that high wages cost jobs. Most of the arguments for increasing the minimum wage are more emotional pleas and theories with very little evidence for achieving the desired outcome. The truth is that raising the minimum wage does not lead people to get out of poverty, but what it does is make it more difficult for younger workers to find entry-level jobs to build their skills. By raising the minimum wage, experts argue that it will make it more difficult for younger workers entering the workforce to get a job. Employers will be hiring workers with more experience and skills, since they can attract these workers with higher wages. Therefore, raising the minimum wage may be causing more harm to a younger workforce looking to find their first job to gain relevant work experience. Our country needs to focus on the inconvenient truths about the real impact around raising the minimum wage. Some of these inconvenient truths are highlighted by the research that clearly shows how raising the minimum wage may cause more harm than good, and have significant consequences to the younger and entry-level workers vs. the emotional theories that state increasing the minimum wage will...
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...Expansionary Economic Policy Clinton Dullin Eco203: Principles of Macroeconomics Evelyn Carlson 9/1/02014 The government in times of economic recession has responsibility to take action, engaging in expansionary economic policies is the action my paper will discuss. The types of economic expansion include Fiscal Policy, and Monetary Policy, the expansion of the two policies allows the government to adjust taxes, and government spending. Harry Truman once quoted “It’s a recession when your neighbor loses his job: it’s a depression when you lose yours.” (The economy perspective, the banker's banker. (1998, Jul 29). When recession hits the first party that is blamed is the government, so there ability to take action is a sign of them taking responsibility. Government action is necessary to right the recession ship, expanding Fiscal, and Monetary Policy may very well be the answer. The first topic of discussion is Expansionary Fiscal Policy and how the government uses the policy to affect the economy. Expansionary Fiscal Policy is a type of policy which includes increase in government purchases, a supple decline in taxes, while making an increase in transfer payments. These changes are designed to close the recessionary gap, while increasing economic stimulus packages and they aim to decrease unemployment. The government will introduce Expansionary Fiscal Policy during anticipation of contractions in the business-cycle. Increase in government spending will increase...
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