...KEVIN RYEN Micro Economics Minimum Wage State the purpose of this legal price, assess its impact on the market for labor, and evaluate the extent to which it achieves its purpose? The minimum wage is the lowest rate at which a worker can be played. There she minimum wage laws pegged to hourly, daily and even monthly rates, although U.S. law is pegged to an hourly wage. Also, a minimum wage law usually makes it illegal for a person to sell his labor for less than the minimum wage rate The general purpose of the minimum wage is to guarantee a living wage to all workers who work a standard period of time, whatever that might be. In theory, any labor who works 40 houses a week on minimum wage should be at or above the poverty level line. However, the minimum wage has not kept up pace with the inflation in the United States, and the cost of living increases more than the wage increases that are given and that way behind the standards Minimum wage laws were first started in Australia and New Zealand in the 1890s.The first minimum wage to be law was in Massachusetts in the 1912, but it only applied to children and women. The federal minimum wage was established in 1938, by the Fair Labor Standards Act. Initially set at 25 cents 0.an hour, the wage has been raised periodically to reflect changes in inflation and productivity. That minimum wage often involve protracted political battles,” Did you know that one in five...
Words: 2827 - Pages: 12
...Minimum Wage: The Effects of Minimum Wage on the Economy and Poverty Level in relation to Living Expenses Alison Denne Central Virginia Community College Minimum wage started with the “New Deal” program. In 1933, Roosevelt’s advisers decided to develop a National Industrial Recovery Act (NRA) to “suspend antitrust laws so that industries could enforce fair-trade codes resulting in less competition and higher wages” (Grossman, 1978). In his President’s Reemployment Agreement, Roosevelt accepted “to raise wages, create employment, and thus restore business” (Grossman, 1978). This began the arrangement of the government creating a policy for the working class. In order to offset the “overwork, underpay” regulations in the US economy,...
Words: 1836 - Pages: 8
...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...
Words: 2803 - Pages: 12
...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...
Words: 890 - Pages: 4
...secure an income for poor families with children. Many argued, especially social activist, that income maintenance assistance should be temporary for those experiencing financial hardship. This is probably why the government chose a residual approach to income maintenance rather than a universal approach. The purpose for residual approach income maintenance is to provide a minimum level of income to families and individuals. Recipients must demonstrate an economic need according to the (means test), with eligibility based on income and assets (p.116). Examples of residual income are Temporary Assistance to Needy Families (TANF), Supplemental Security Income (SSI), food stamps, Medicaid, earned income tax credit (EITC) and (Section 8) housing aid. Each program includes an incentive or clause that promotes able bodies to increase their income by earing wages to supplement their assistance. In conclusion, according to Antipoverty Strategy, when hourly wages are high, the number of people in poverty tends to decline. (p.163) The purpose of universal income maintenance is to offer minimum income for poor families with children. Universal approach supporter, President Nixon, proposed a replacement for the old welfare aid programs with a single program called, “Aid to Families with Dependent Children.” This plan would grant income to families with children, but with strict stipulation. One of the requirements would force mothers with children under three years old...
Words: 449 - Pages: 2
...The problems of race and urban poverty remain pressing challenges which the United States has yet to address. Changes in the global economy, technology, and race relations during the last 30 years have necessitated new and innovative analyses and policy responses. A common thread which weaves throughout many of the studies reviewed here is the dynamics of migration. In When Work Disappears, immigrants provide comparative data with which to highlight the problems of ghetto poverty affecting blacks. In No Shame in My Game, Puerto Rican and Dominican immigrants are part of the changing demographics in Harlem. In Canarsie, the possible migration of blacks into a working/middle-class neighborhood prompts conservative backlash from a traditionally liberal community. In Streetwise, the migration of yuppies as a result of gentrification, and the movement of nearby-ghetto blacks into these urban renewal sites also invoke fear of crime and neighborhood devaluation among the gentrifying community. Not only is migration a common thread, but the persistence of poverty, despite the current economic boom, is the cornerstone of all these works. Poverty, complicated by the dynamics of race in America, call for universalistic policy strategies, some of which are articulated in Poor Support and The War Against the Poor. In When Work Disappears, William Julius Wilson builds upon many of the insights he introduced in The Truly Disadvantaged, such as the rampant joblessness, social isolation, and...
Words: 2489 - Pages: 10
...parenting styles, and sometimes the lack of rest (George, 2009). Around 43% of children live within a single parent home that is at or below the national poverty level (George, 2009). Due to not being financially stable, some single parents are forced to live in low-income neighborhoods which result into poor schooling systems. More children are likely to drop out of school and to be raised in poverty. Consequently there are more like to be teen pregnancies. Around 60% of are raised by young single parents who are less likely to get married (Feldman, 2011). In addition to teenagers are more likely to raised their child without the help and support of the father, as a result most teenagers abandon their education and have to rely on minimum wage jobs for a source of income (Feldman, 2011). According to Feldman, “ The consequences of living in a single parent families depends on the financial condition of the family and, if there had been two- parents, the level of hostility that existed between them” (Feldman 2011). the majority of people think the cause is whether there were two parents at first and situation changed leaving one parent to raise the child. Additionally the economic status is a very important aspect on determining what types of consequences the child will grow up with. Consistent with Bramlett &...
Words: 630 - Pages: 3
...unequal income distribution. But for the United States, it has examining percentile distributions. The US is using five groups to show the percentage of income received. As we can see from the table U.S. Census Bureau, the proportion received by the poorest Americans has remained virtually unchanged. Most of the observed changes occurred between 1929-1970, probably reflecting the impact of the great depression and new government programs in the 1930s, as well as World War II from 1950-1980, so there was a little change in the overall distribution (from textbook). Therefore, many things can influence the income distribution, such as wage payment systems change, tax laws change, transfer payment systems change, property rights change, economic systems change and general economic conditions change. b) As we know, the income for workers, it might be wages or salaries for a month. The dividend is the income for stock owners. Interest is the income for holders of savings accounts. Individuals will have several sources of income, but labor income is the main source of income for many individuals and families. The labor income could affect by age, skill and human capital, worker preferences, and job preferences. Younger people with few skills tend to make little income when...
Words: 759 - Pages: 4
...apply cost cutting measures and cut down the numbers of non-core staff to maintain a profitable situation. Based on the economic forecast -optimum but fragile- the company could operate on a profitable level which indicates the company wants to maintain a level of production which it used to, but is worried about the future in this fragile economy. So the company decided to hire temporary / limited term staff. The headquarters of the North American branch of Schukra Inc. could not be properly operated without the support of the technical and engineering expertise of top management. So they trying to accommodate them their best in order to maintain the core function of the company. This decision is implied by two commitments: maintaining the wage rate and health and welfare benefits, and job security. To coordinate the decisions which benefit the core workers, the company decided to increase the production level by hiring temporary workers who are introduced by an outside agency. Most of the temporary...
Words: 1975 - Pages: 8
...Next month, people in SeaTac will vote on Proposition 1-- it would lift the minimum wage to $15 an hour for workers at the airport and its nearby hotels, parking lots and car-rental agencies. That’s a 63 percent increase over Washington’s current minimum wage of $9.19 an hour, the highest of any state. A year ago, Jorge Sanchez of Long Beach, California was struggling to support his family on $9.75/hour as a dishwasher at a hotel. Sanchez, 56, threw his support behind hiking the minimum wage to $13 an hour for hotel workers in this city just south of Los Angeles. But the Colombia native soon experienced an unintended consequence: The same month he got a $3.25-an-hour bump in pay, Sanchez’s employer cut his workweek from 40 to 30 hours. “Measure N was good because it raised our wages. But what the hotel did was cut our hours, so it hasn’t made a change,” he said. Unlike Sanchez, Hilton bellman Donald Blackwood still works a 40-hour week and pulls in an extra $800 a month thanks to the city’s “living wage” law. “Now, I have enough money saved up to buy a car,” he said. Both the SeaTac and Long Beach measures are part of a stepped-up effort by labor and community activists nationwide to end what they call poverty-wage jobs. In Seattle, both mayoral candidates are plugging an hourly minimum standard of $15 or more. Prop. 1 proponents say it would lift low-wage workers out of poverty and give them more money to spend at local businesses, pumping an additional $54 million...
Words: 298 - Pages: 2
...At Commerzbank this theory could be put under scrutiny as every worker may have their own epitome of ‘one best way” to perform a task . His other theory of a ‘fair days of work’ ,may not be successful at Commerzbank as a workers wage depends upon his performance in monetary terms . However, this principle must be viewed with a degree of caution, as the notion of this theory would exclude payments being made to new/untrained employees and trainees. As they may not generate any revenue at all or an insignificant amount for Commerzbank. According to this theory this may lead to a salary which is below the minimum wage .If this was to happen Commerzbank would be breaking the law. It is worth considering that due to the drastic change in the volatile economy employers have rights unlike in Taylor’s Industrialised time . Some people may disagree and state that due to Taylor believing that it is a mangers role ,to do the thinking and the workers to the physical aspect of the job .If a worker was slow it would be the managers duty to use their initiative, and do part of the job to pick up the pace . Instead of the manger doing the mental aspect of the task they are also doing the physical at this point. If a worker generated a vast amount of revenue for Commerzbank, but was not paid accordingly this would lead to predicaments .The firm may be unable to match the X amount of revenue to a workers salary, thus resulting in underpayments being made . Money is not the only...
Words: 515 - Pages: 3
...how employees respond when they are not satisfied with their jobs. Understanding the responses helps companies to identify that discontent and hopefully address it before it goes too far. Causes Of Job Dissatisfaction There are a number of specific causes for job dissatisfaction, but it is understood there are four main areas that reside in this issue. These areas are: Being underpaid: Not being paid what you are worth is called being underpaid. This one issue is the most challenging one to work with because it can be driven by interpretation or perspective that is very personal or individually focused. If a person does not think they are being paid enough to do their job, then they perceive themselves to be underpaid - even if the wages they make are in line with that position. If they research...
Words: 973 - Pages: 4
...Mrs. Bailey Speech-2 8 January 2014 Bibliography Carney, Timothy P. "Increasing the Minimum Wage Favors Megastores Like Wal-Mart." The Minimum Wage. Ed. Noah Berlatsky. Detroit: Greenhaven Press, 2012. Opposing Viewpoints. Rpt. from "Wal-Mart, Costco Back Minimum Wage That Could Hurt Small Rivals." Washington Examiner 20 Apr. 2007. Opposing Viewpoints in Context. Web. 16 Dec. 2013. De Coster, Karen. "Wal-Mart Benefits Americans." Ethics. Ed. Laurie DiMauro and Tina Grant. Detroit: Greenhaven Press, 2006. Opposing Viewpoints. Rpt. from "The Case for Wal-Mart." www.mises.org. 2003. Opposing Viewpoints in Context. Web. 16 Dec. 2013. Longo, Don. "Wal-Mart Supports Communities." Are Chain Stores Ruining America? Ed. Kirsten Engdahl. Detroit: Greenhaven Press, 2007. At Issue. Rpt. from "Fighting a Bad Rap: Wal-Mart's Positive Contributions to Retailing and Local Communities Are Often Overlooked by Sensation-seeking Press and Special Interests." Retail Merchandiser (2004). Opposing Viewpoints in Context. Web. 16 Dec. 2013. Longworth, Richard. "The Urban Poor Need Supermarkets, Not Urban Agriculture." Urban Agriculture. Ed. Nancy Dziedzic and Lynn Zott. Detroit: Greenhaven Press, 2012. Opposing Viewpoints. Rpt. from "Forget Urban Farms. We Need a Wal-Mart." Good Inc. 2011. Opposing Viewpoints in Context. Web. 16 Dec. 2013. Vedder, Richard, and Wendell Cox. "Wal-Mart's Anti-Union Business Model Is Good for Workers." The Wal-Mart Revolution: How Big-Box Stores Benefit Consumers...
Words: 332 - Pages: 2
...The laws set for minimum wages protect unskilled workers from exploitation (Gorman, 2008) and provide them with a “living wage” (Livingston, 2011). The idea of a minimum wage was created in Australia and New Zealand to reduce poverty (Gorman, 2008). Maximum rents for housing was created to protect tenants from increased monthly rent cost by landlords (Block, 2008). Formally, rent control is known as the Emergency Tenant Protection Act; which was created during World War II in New York City (Block, 2008). b. Why are there no laws setting maximum wages for workers or minimum rents for housing? Setting a maximum wage law will not only hinder the economy but hurt high wage workers purchasing power. When the economy is booming, most workers receive raises, however if there is a cap placed on the wages, workers would max out their earnings. If workers production levels in one hour is 10 times what they receive in compensation, the only party benefiting in the transactions in the company. Maximum wages would also hurt the market for luxury items. Workers may be reluctant in purchasing certain luxury items because once they have reach there max wage; there is no room for wage increases. A price control for rent was created in an effort to aid low-income families. However, placing a minimum rent would directly affect those families that have very low or no income, which can not afford a monthly rent but need a home to live in. There are rental properties that are subsidized by...
Words: 271 - Pages: 2
...when it comes to work and relationships. There would be no judging a person because they are of a different religion, race or sex. Unlike the society we currently live in there would be no wage difference because the person happened to be a female. Wages would be based on the person’s ability and education level. I would encourage all businesses to be family oriented giving their employees ample time to spend with the loved ones by having a four-day workweek and a living wage that would support this. If employees are happy with their place of employment they will certainly be more productive. There would be no racism or bullying, people would be free to do as they see fit for themselves and their family as long as they stay within the boundaries of the law. Also, in order to teach young people the importance of working and supporting family they would start doing community service projects in high school so they can learn the value of their education and it would also help to keep young people out of trouble. The economic structure would be based mostly on natural resources and balancing between the rich and the poor. There wouldn’t be low tax for the wealthy and high tax for the middle class and CEO’s would not be making millions of dollars a year while the single parent is making minimum wage and living in a shelter because they can’t afford the rent. The next area to discuss would naturally be the law of the land. In this Utopian Society there would be no punitive law instead...
Words: 664 - Pages: 3
