...The Business of the Minimum Wage • Quantity demanded of employees decreases when quantity supplied of potential employees increases, as minimum wage increases from $7.25 to $10.10. • The green dot shows original equilibrium, when minimum wage was at $7.25. Raising Minimum Wage: WHO GAINS •Government receives higher income tax due to increase in wages. •Low income families are likely to receive more positive impact from new increase wages. WHO LOSES •Potential workers may face potentially unemployment since now employers may not hire as many employees due to increased wage expenses. •Consumers ends up paying a high price for goods and services. •Job market will shrink due to employers reacting to increased wage expenses. DIFFERENCE •Inflation rate will increase. IN IMPACT ASSESSMENT •Pros: To stimulate employers competition and to reduce lower labor turnover •Cons: The positive impacts of a new minimum wage is short-lived since costs and prices will react to this change. Wage => Cost => End Price IS RAISING MINIMUM WAGE A GOOD IDEA? No, because the consequences outweigh the benefits. At first glance, the benefits are positive, but are in fact superficial. In the long-run, the positive impacts are minimal. Bibliography • Romer, C.D., March 2, 2013. The Business of the Minimum Wage. The New York Times, Retrieved from http://www.nytimes.com/2013/03/03/business/theminimum-wage-employment-and-incomedistribution.html?pagewanted=all&_r=0 • “Los...
Words: 259 - Pages: 2
...earlier than Canadians with high incomes. It is estimated that if the death rates of the highest income earners applied to all Canadians, more than one-fifth of all years of life lost before age 65 could be prevented.” Toward a healthy future: Second report on the health of Canadians Some perspective Minimum wage work is not distributed equally in Ontario: women, racialized workers and recent immigrants are more likely to be working for minimum wage. In 2011, the share of racialized employees at minimum wage is 47% higher than for the total population – 13.2% as compared to 9%. Fully 19.1% of recent immigrants are working at minimum wage, more than twice that of all employees. Young workers are much more likely to be working for minimum wage than those who are over 25. But almost 40% of the 183,000 Ontarians working for minimum wage were 25 years of age and over in 2011. The share of adult employees at minimum wage more than doubled between 2003 and 2011. However, the pace of increase was even faster for racialized adult employees and adult employees who are immigrants. Further, almost a million Ontarians are making between $10.25 and $14.25 an hour. The age distribution of low-wage employees shifts at this range: 61% of those making $10.25 to $14.25 are 25 years of age and over. The assignment This assignment...
Words: 1392 - Pages: 6
...business. In the 60’s, the first true Wal-Mart open its doors permanently. By the 80’s Walmart was a billion dollar company with stores operating across 28 states. (http://walmart1percent.org/) Today Wal-Mart is the largest corporation in the world employing 2.3 million people (Dun & Bradstreet, 2014, para. 1) However todays Wal-Mart does not share Sam Walton visions or his values. Today Wal-Mart does whatever it needs to maximize revenue at the expense of its employees and customers. Today’s Wal-Mart has little or no respect for their employees. For the majority of their employees’ wages lower than their closest competitors (Costco and Target) since Wal-Mart encourage their employees to get on government funded programs such as food stamps, Medicaid, and public housing thereby passing some of their overhead on to the American tax payers. Ever since the death of Sam Walton, it has been understood that several Wal-Mart policies had been changed for the worst leading to 44 class action employee lawsuits over wages. Douglas McMillon the CEO of Walmart, in many ways sees his job as advancing Sam Walton’s vision if all possible (http://walmart1percent.org/). Although his vision and Sam Walton...
Words: 1741 - Pages: 7
... women and children. The conditions of the workers have many factors pushing it towards a very wretched condition. A few of the main factors are listed below 1. Weak Legislative policies and non enforcement of current policy’s 2. Knowledge and literacy among workers 3. Globalization of the construction industry India 4. Frequency of change in government officials 5. Wages Weak legislative policies The current structures of the construction consist of the landowners, the builders, contractors (building, labor, etc). The landowners lease or have a contract with the landowners to construct a structure on the land, the builders further subcontract different parts of the construction to contactors and the labor for different subsections are given to labor contractors to procure the required labor force. The current labor laws exempts the principal (landowners and the builders) from any liability for wages, living conditions, safety of the labor force. The involvement of unions and human right organizations for the rights of the laborers is nonexistent and so there is no one to enforce the current minimal regulations of safety and living conditions. The workers, due to the migrant nature are completely unaware of their rights since it changes from state to state and this helps the contractors exploit the monetary need of the workers. There are no unions or boards to check the safety, living standards, insurance for the workers. The accidents at the work sites are not reported...
Words: 1244 - Pages: 5
...Outline I. Introduction II. Minimum Wage Defined a. Past Minimum Wage Law b. Considerations III. Increased Minimum Wage and Employment c. Job Losses d. Unskilled Workers IV. Increased Minimum Wage and Poverty V. Increased Minimum Wage and Effects for Society e. Costs of Labor f. Higher Prices g. Individual Impacts VI. Constitutionalism h. Previous Court Rulings i. Free Contract VII. Demotivation Factors j. Education k. Promotions VIII. Minimum Wage Redundancy IX. Conclusion The issue of raising the minimum wage is a highly debated topic. This topic is one that appeals to people from all walks of life. During some time in an individual’s life, he has worked for minimum wage. There will always be the worker who feels he is not paid enough and the boss who feels that the worker’s pay is adequate for the work. “If there were only two economists left in the world, they would disagree about the minimum wage” (Mejeur 14). Minimum wage is basically the minimal amount that an employer can legally pay an employee for work on an hourly basis. Past laws governed that the minimum wage would increase every few years, with the last increase being in 2009 for $7.25 per hour (Funk & Wagnalls 1). Many people feel an increase is long overdue. Those people, however, are not looking at the entire picture. Increasing the minimum wage goes beyond simply giving people more money...
Words: 1938 - Pages: 8
...“fittest.” However, there are two more types of people: laborers and consumers. Laborers are those who sell their labor to the capitalists, ideally for livable wages, and consumers are those who purchase the goods or services that are demanded. Ironically, capitalism would be non-existent if it was not for laborers and consumers but these are the people that are seen as “not fit enough.” There are different approaches to capitalism; one of them is called outsourcing. Companies outsource because “outsourcing can be such an approach and one of the strategies that can lead to greater competitiveness. (Ahmad)” Outsourcing can help firms because products that may cost one amount to create may have a significantly lower production cost in another country due to resources that are available in that geographic location. However, as the living necessities and wages rise in the United States, companies like Nike have decided to outsource their labor to take advantage of lower safety standards and a cheaper work force; “Nike employs approximately 23,000 people worldwide…it has been accused of unfair labor practices in Asia. (Goldman)” “One of the major issues in the world today is that many goods bought by consumers in relatively wealthy countries are produced in poor countries by workers working in bad conditions for poor wages. (Hobbs)” While outsourcing is helpful to that country’s economy, “outsourcing provides jobs for some of the world's poorest people (Bhagwati)” and is...
Words: 1171 - Pages: 5
...Case Study: Ethical Issues in Business, Week 2 Keller Graduate School of Management ECON545, November 13, 2013 Price Discrimination An ethical issue that individuals face today involves the price war or price discrimination involving the airline industry. According to the legal definition of price discrimination: Price discrimination is the practice of charging different persons different prices for the same goods or services. Price discrimination is made illegal under the Sherman Antitrust Act. 15 U.S.C. §2, the Clayton Act, 15 U.S.C. §13, and by the Robinson-Patman Act, 15 U.S.C. §§13-13b, 21a, when engaged in for the purpose of lessening competition, such as tying the lower prices to the purchase of other goods or services. Price discrimination occurs when consumers are charged different prices for similar goods and the retailer cannot explain the why the differences takes place. Although the industry is one of a competitive market it benefits from the supply and demand. High demands of a particular flight allows airline companies to increase the rates and creates a scenario for a inelastic demand, individuals willing to pay a higher then expected price. This also works the same but opposite for flight that at not in high demand, the airline company now sells the seats at lower rates in hopes to secure travelers the difference is airline companies tend to withhold certain seats in hopes to sell them at a later time (prior to the actually flight date) for a higher...
Words: 1856 - Pages: 8
...Press. The editor provides a context and elaborates on the meaning of nearly 200 letters written to Eleanor Roosevelt by children and youth experiencing the hardships of the Great Depression from 1933-1941. The young people request individual assistance, explain why their families are unable to provide basic necessities, and justify the worthiness of their requests. The poignant letters provide some insight into hard-working families during this period who either have no employment, work part-time, or work at low-paying jobs. Children and youth plead with Mrs. Roosevelt for clothing; for money to ward off evictions, pay debts, and purchase simple household conveniences; for funds for educational expenses, Christmas gifts for family members, marriage and new household expenses, bicycles to help their families, and for radios to ameliorate loneliness. The letters attest to the courage, tenacity, and intelligence of youth who had few resources, but hoped for better lives during this era. The editor also clarifies Mrs. Roosevelt and her staff’s responses to the letters. Only 1 percent of youths received the material assistance they requested. About 5 percent were told by Mrs. Roosevelt’s staff to seek help from New Deal agencies, 3 percent were directed toward charities, and 3 percent were encouraged to contact educational institutions. Eighty-eight percent of the letter writers were rejected by Mrs. Roosevelt’s office. Readers are left to wonder about the children and youth who...
Words: 2403 - Pages: 10
...I. Background Play Time Toy Company is a manufacturer of plastic toys for children that include toy cars, military toys, trucks, guns, animals, robots, action figures and such. These product categories are produced in a wide range of designs, colors and sizes. Play Time Toy Company was founded in 1973 by Henry Richards and Jonathan King. Manufacturing business for plastic toys was considered to be highly competitive due to the fact that this industry was populated by large number of companies. Though this kind of industry makes company experience a short on capital and management talent, it was easy for new competitors to start due to its minimal capital requirements and required technology (as compared with other business industry). Play Time Toy Company has experienced a rapid growth from the time it was founded. Accordingly, from 1973 until the early 1990’s, this toy company has specialized in seasonal manufacture, where they respond directly to the orders of their customers. However, there were a lot of problems that arose from this method of scheduling production. II. Problem Statement In order to provide the Play Time Toy Company with a more profitable operation, the production manager needs a scheduling production method that would help the company incur the smallest cost of goods sold, at equal level of sales, without jeopardizing the quality of the products. III. Objectives 1. To employ a scheduling production method that would: *...
Words: 2743 - Pages: 11
...regarding the workers who were on strike for the last 3 months. The objective of the meeting is to take a lenient and sympathetic view towards those workers. At the same time, strict action vides IAC 37 will be taken against workers who will stay away from the meeting. This will be done to maintain the office discipline and sanity of the corporate which is the base of our organization. Exhibit-4 The workers have to face apprehensions, during the strike period, due to their lack of ability to take decision rationally regarding minimum wage and other benefits from the company. The reasons behind this are • their minimal contact to outside world • external influence • frustration and stress • no proper knowledge of their strengths and weaknesses • Negative feedback from trade union Counseling and training should be a part of their work in order to orient them towards company’s policies and goals. Funds should be allocated to meet such expenses. Exhibit-5 The project report...
Words: 352 - Pages: 2
...Company A has made a decision to expand their company in Japan. Our company is going to face some failures in this market located in Japan. When looking at this we do not want to fail on our first attempt. Of course, this is a risk that will have to be taken. If there is a failure on this first attempt, we will incur a great expense, and not mention the difficulty to attempt a second attempt in that particular market. I feel that the most important problem that we are going to face will be the language barrier. The official language in Japan is Japanese. If the local business chooses to conduct a business in Japan, a fluent interpreter will need to be present at all times. This is another expense for the company. English is a language that is taught in Japan, but it is not the primary language that is spoken there. The Japanese have a tendency to be passive resistance. There are a couple of things that this culture takes very seriously. One would be body language. Silence is something that is more integrated in their culture and customs. Helping to avoid a misunderstanding between you and the Japanese conversationalist you will need to use the Japanese body language along with verbal communication. Eye contact here in the United States is something that we use, that is considered very important. In Japan this is to be considered very rude and also aggressive. I feel that to get buy in Japan we need to make sure that we have just a basic knowledge of their culture...
Words: 1365 - Pages: 6
... Based in Beaverton, Oregon, Nike had been a corporate success story for more than three decades. It was a sneaker company, but one armed with an inimitable attitude, phenomenal growth, and the apparent ability to dictate fashion trends to some of the world’s most influential consumers. Selling a combination of basic footwear and street-smart athleticism, Nike pushed its revenues from a 1972 level of $62,000 to a startling $49 million in just ten years. Many researchers believe that Nike went in decline due to two reasons: Michael Jordan’s final retirement and the slowing economy. Another aspect of Nike that has brought a negative image upon them is the negative accusations of exploiting foreign child labor with lower wage. Poor labor conditions and low wages have been an issue for many years, and are still present in 2011.In the 1980s and 1990s, Nike had been plagued by a series of labor incidents and public relations nightmares: underage workers in Indonesian plants, allegations of coerced overtime in China, dangerous working conditions in Vietnam. For a while, the stories had been largely confined to labor circles and activist publications, until a young female worker had died in a Nike contracting factory in 1997, the labor conditions at Nike had hit the mainstream. Nike has differentiated itself from its competitors were not so much its shoes as its strategy. First, the company would shave costs by outsourcing all manufacturing. There would be no in-house contracting factories...
Words: 3349 - Pages: 14
...washes can be performed with or without the owner’s presence, which can save a busy vehicle owner valuable time. Lastly, since dirty car owners do not have to travel to their local, fixed car wash location, a savings in gas will be acknowledged. Nomadicar will be a self-sufficient car wash service capable of fully detailing cars, SUV’s, vans, motorcycles, and more. Nomadicar was created to provide a car wash alternative to the vendors that currently exist in the market. The Atlanta market provides an excellent opportunity for a mobile car wash to be relatively lucrative. Nomadicar is built with the premise of satisfying all deliverable criteria for minimal overhead and cost. This will expedite the timeframe of the initial Return on Investment (ROI). A mobile car wash company provides an investment opportunity with minimal upfront risk. In order to start a mobile car wash, initially there are three major deliverables of this project. These three deliverables are a water tank, a pressure washer, and a vehicle to mount the water tank and pressure washer on. Since the project is a mobile car wash, the consideration of a fixed, local water source not being available is valid. Therefore, a pressure washer adapted to drawl water from a static source must be acquired. For this situation, the acquisition of a DK2000 pressure washer with soap injector will be purchased. This pressure...
Words: 1390 - Pages: 6
...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...
Words: 3925 - Pages: 16
...and use fees to cover any short fall. The other types of alternative financing that available is letters of credit that common arrangement in International Finance, account receivable financing, a secured short-term loan that involks either the assignment or the factoring of receivables. Inventory loan, a secured short-term loan to purchase inventory. QUESTION 2 (15 MARKS) KKRE Company is producing customized cardboard boxes in a variety of sizes for different customers. The company currently has a cash balance of RM 8,000 and it plans to purchase a new machinery in the next month (November) at a cost of RM 50,000. In order to take advantage of the discount offered, purchasing of the machinery will be made in cash. KKRE maintains a minimum cash balance of RM 6,000 for unforeseen contingencies. Following is the information regarding company’ projected sales. | |August |September |October |November |December | | |RM |Rm |Rm |Rm |Rm | |sales |60,000 |85,000 |70,000 |90,000 |120,000 | Meanwhile, the policy on sales to customers and purchased to suppliers are as follows :...
Words: 1178 - Pages: 5
