...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,...
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...some of the additional effects raising the minimum wage income has on society. The United States low wage workers, namely the fast food industry workers are currently demanding higher wages. We will discuss the effect of those higher wages to businesses, the workers and those who we would not think to be affected. Effects of Minimum Wage Increases Chapter 1 Introduction Anyone who watches the local or national news has heard of the recent debate over raising the nation’s minimum wage requirements. Employees of McDonald’s, Wendy’s and Burger King are protesting in the streets and going on strike demanding a $15 per hour minimum wage (Fast Food Workers). These restaurant chains and others do not believe the minimum wage should be raised to $15 per hour for fast-food workers. There are many arguments to support both the demand to raise the minimum wage and not to raise the minimum wage. This paper will focus on different arguments and the impacts of raising the minimum wage will have on society from different angles, the first being how employers may respond to the wage increase by reducing the amount of employees they employ. The second focuses on who the mandated increase will most likely impact. And the third and final being the artificial inflation effects on the consumer. History Raising the minimum wage is not a new idea for the United States. In 1938 congress passed the Fair Labor Standards Act (FLSA) which ensured minimum wage of 25 cents per hour (USDofL)...
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... (History Of Minimum Wage) President Franklin D. Roosevelt characterized the Fair Labor Standards Act of 1938 (FLSA), as “the most far-reaching, far-sighted program for the benefit of workers ever adopted in this or any other country.” A law drafted by Senator Hugo Black of Alabama and signed into law in June 1938, the FLSA was designed to “put a ceiling over hours and a floor under wages” by establishing an eventual maximum 40 weekly work hours. Henderson, David R. "Raising the Minimum Wage Will Not Reduce Poverty." Poverty. Ed. Viqi Wagner. Detroit: Greenhaven Press, 2007. Opposing Viewpoints. Rpt. from "The Negative Effects of the Minimum...
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...Initially minimum wage was set at $0.25 in 1938 by President Franklin Delano Roosevelt. It has been increased 22 times by congress, when I went from $6.55 to $7.25 an hour. Many people who are working for a higher minimum wage claim that $7.25 is not enough to live off of and they believe that if it were to increase, it would help create more jobs in the community and grow the economy. Although there are some with other opinions, and say that some businesses cannot afford to pay more and might have to lay off workers, reduce hiring, or even close down due to low expenses. Increases have been shown to make it more difficult for low-skilled workers with little or no work experience to find jobs or become upwardly mobile. In 1939 the Women's Party of Connecticut argued that while the minimum wage law covering women and minors was designed to protect them, it was actually harmful and the conditions placed on their employment made them less employable than men. The National Industrial Recovery Act (NIRA), the first piece of legislation that attempted to establish a federal minimum wage, was passed by congress and signed by President Roosevelt in 1933. NIRA was declared unconstitutional by the Supreme Court in 1935 as it was deemed an "unconstitutional delegation of legislative power." Elements of the NIRA, such as minimum...
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...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...
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...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...
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...1. Assessment Exemplar Assessment Tasks The table below summarises how each assessment exemplar task relates to coverage of the Outcomes detailed in the Unit specification. It also indicates the evidence, which should be retained for external moderation. |Outcome |Suggested task |Suggested evidence to be retained | |. | | | |1. |Each candidate should write a report that|A written report that can be used by Charles Prospect to| | |can be used by Charles Prospect to |give the required presentation to the client | | |deliver his presentation to Bean & Co. |It should clearly describe the personality of a company | | |The report will be assessed for the |separate from its owners and board | | |demonstrated knowledge of the legal |It should also describe the process by which a company | | |formation of a company, forms of |can be formed and registered | | |corporate body and procedures for company|The different forms of corporate body that can be formed| | |formation. Case Study 1 provides |should be clearly described | | |background information for this...
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...Abolishing the Minimum Wage ENGL 101 / Janet Stallard Carla Woods American Public University Abolishing the Minimum Wage Many Americans think of the minimum wage as a means of raising the income of the working people. However, the minimum wage is not the best way to combat poverty. In fact, the minimum wage does more harm than good. The list of its negative effects is a long one: it causes unemployment; it prevents unskilled workers from getting the on-the-job training they need; it encourages teenagers to drop out of school; it promotes the hiring of illegal aliens; and it increases welfare dependency. For all of these reasons, the minimum wage should be eliminated. To evaluate the minimum wage, we must first understand why it was originally created and what its historical effects have been. The minimum w age was introduced in 1938 by President Franklin Roosevelt. According to Dr. Burton W. Folsom (1998), a senior fellow in economic education for the Mackinac Center for Public Policy, the driving force behind this new legislation was not the plight of the working poor but the political might of the highly paid textile workers of New England, who were trying to protect their jobs as they faced competition from Southern textile mills. The Southern mills were able to produce cloth of equal quality more cheaply than their counterparts in the North because of the lower cost of living in the South, which allowed Southern factories to pay lower wages to their workers. In response...
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...Found under "Automation Next Round" | Industry | Total the capacity of each product in that segment | Total capacity of each product in that segment X 2 | | 3. Production costs Activity Cost to double capacity | Cost to raise automation to 10 | Increasing capacity is $6 per unit with an adjustment for automation. | Increasing automation is per unit of capacity | Formula is:First Shift Capacity x [$6 + ($4 x automation level)] Example Input: 500 | Formula is:First Shift Capacity x [$4 x (10 - automation level)] Example Input: 700 | | | 4. Calculating margins Activity Useful formulas: Contribution Margin($) = Price -_ (Material Cost + Labor Cost) Margin Percentage (%) = Contribution Margin/Price 5. Determining Margin Potential Finding the maximum amount of profit you can get from one unit of a product is called Margin Potential. It’s useful for a company when making a decision about whether to go into production or not. In it’s simplest form, it is calculated as: Margin Potential = Maximum Price possible - Minimum Unit Costs possible Minimum Material Cost = [(Lowest Acceptable MTBF * 0.30) / 1000] + Trailing Edge Position Cost Minimum Labor Cost = [$11.20 - (1.12 * Automation Ratings Below)] + 1.12 RAISING MONEY AND PAYING DEBT Examine the proforma Income Statement Examine the proforma Balance Sheet Display the Finance worksheet...
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...therefore effectively raise the value of crops. In 1933 alone Six million piglets were slaughtered by the government after they had bought them from the farmers. In effect the meat was canned and given away for free to the unemployed. Although this economically stabilised the farming market, many Americans could not accept this policy of destruction. However the AAA did not benefit the sharecroppers, as there were three million sharecroppers, who did not own their land. Most of the sharecroppers were African American and they lived their lives facing a high amount of poverty and although the AAA initially helped them as it ensured the got employment from farmers to destroy the farmers’ crops. But once they had completed this, they were left jobless once and again, meaning many moved to the ghettos still facing poverty. The last major reform measure was the fair labour standard act of 1938 establishing a minimum wage of 40 cents per hour and a maximum working week of 40 hours for business involved in interstate commerce and particularly for workers not in unions. Furthermore this meant that is act offered protection against the exploitation of child labour as it ensured maximum hours and minimum wages for most workers were set, overall raising the wages of 12 million workers by 1940. This system was believed to be a model for the future, because it was the first stepping stone for achieving equality in work. It gave the benefits of a shorter working week and minimum hourly wage by statute...
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...Trading Strategy Our team was assigned to be in the position of a corporation. Our primary objective was to raise fund. We needed to raise 19.7billion of Japanese Yens and 425million of British Pounds with 790million of Euros. Our secondary objective was to speculate and make a profit for the corporation. As being a price taker, we needed to take whatever quotes given by banks or, if we called up corporations, and corporations. So we had to no control over the spreads of any currency. As far as our primary objective was concerned, we tried to take advantage of the volatility of the market to obtain, we hoped, the most favourable deals in order to use the minimum amount of Euros to obtain the maximum amount of Japanese Yens and British Pounds. Our market view was closely linked with our speculative strategy. We anticipated that British Pound would be depreciating against the US Dollar as well as other currencies concerned in the dealing section in the short term because investors were expecting considerable rates cut would likely to be implemented by the Bank of England and the European crisis seemed to be being dealt with and investors were trying to take advantage of positive news about the crisis. Due to the aforementioned points, we chose to use Euro or US Dollar to speculate. Since we were given Euro as our starting currency, we did not need to implement any transaction, we could just keep Euro and observe the movement of this currency so as to make adjustments. We also...
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...In the chapter from “Nickel and Dimed” written by Barbara Ehrenreich, low class jobs are discussed as well as the entrapment in them. People working minimum wage jobs deserve to experience a decent standard of living. The jobs they do are necessary. We may think of them as jobs for people with nothing else going for them, but in reality we do need those people working there. Her experiences working menial jobs reminded me of my job at Walgreens. I started working there as a cashier or a “customer service associate” then began working in the cosmetics area basically cleaning things the whole time as a “beauty advisor”. The people would give fancy names menial jobs to make them see more important when in reality you could train a monkey to work there. If you were to have one person to sell the alcohol, cigarettes, and drugs and to help customers find things, you could have monkeys working at the register and cleaning everything....
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...Be sure to explain why you answered as you did, stating the logical reasons for reaching your conclusions. 1. There are federal and state laws setting minimum wages for workers. There are also city laws setting price ceilings for housing rents. a. Why are there laws setting minimum wages for workers and maximum rents for housing? 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...
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...Minimum Wage: A Historical Perspective and its’ Future On June 18th, 2004, Senator Kerry announced his minimum wage plan, saying, “I’m running for President to build a stronger economy that lifts up families and expands opportunity for hardworking Americans. Today, there are workers, many of them women, struggling to get by on the minimum wage. That is wrong. We can do better. And together, we are going to change it. I want to build an America where working families can get ahead, where a family working fulltime does not have to raise their children in poverty.” (Burkhauser 1) Classical economists have proven for years that floors and ceilings on prices are bad for economies. So why do politicians, who call themselves progressive, continue to beat the drum of creating a living wage? The reason; to get more votes. A wage floor is strictly a political issue disguised as a social problem needed to help the poor. Raising the minimum wage has taken on a fever pitch in Congress this year, regardless of the fact that there is not a widely accepted empirical economic study suggesting it is the correct policy to assist the working poor. This paper consists of research conducted by the author from both the government activist and laissez-faire positions. In addition to the list of works cited at the end of this paper, several public policy institute web site were reviewed for pertinent material. These sites include: the Heritage Foundation...
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...Borrowers include individuals, companies and the government. All three have a need to borrow money. The second role in the process is savers. Savers have money, which is why they're also called lenders. They have the money to lend. Savers not only have money in savings accounts, they have money deposited in other interest earning products, such as retirement accounts and certificate of deposits. Savers include individuals, companies and the government. 2. Analyze why the federal reserve is less “independent” than what it appears to be The Federal Reserve, like many other central banks, is an independent government agency but also one that is ultimately accountable to the public and the Congress. The Congress established maximum employment and stable prices as the key macroeconomic objectives for the Federal Reserve in its conduct of monetary policy. The Congress also structured the Federal Reserve to ensure that its monetary policy decisions focus on achieving these long-run goals and do not become subject to political pressures that could lead to undesirable outcomes. 3. Using loanable funds theory, determine how changes is consumer savings business investment It's possible for interest rate changes, either up or down, to have the effect of increasing consumer spending or decreasing spending and increasing saving. The ultimate determinant of the overall effect of interest rate changes primarily depends on the consensus attitude of...
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