Macroeconomics: Should Minimum Wage Be Raised?
analytical Essay
809 words
Macroeconomics is the study of the behavior of an economy at the aggregate level. Macroeconomics considers the industrial sector, the services sector or the farm sector, but not specific parts of any of these sectors. The factor studies might include inflation, unemployment, and industrial production, often with the focus the effect of government policy on these factors. That leads me to an article that I read in Businessweek titled Making the Economic Case for More Than the Minimum Wage, written by Peter Coy on February 13th, 2014. The article starts with talking about President Obama’s 2014 State of the Union address calling for an increase in the minimum wage to $10.10 per hour. There was also a reference in the 2013 State of the Union address, but at that time it was to raise the minimum wage to $9.00 per hour. Where do these numbers really come from? Are they arbitrary or is there an economic rationale? The minimum wage has been on political agendas and debated for a number of years. The current minimum wage was set in 2009. To set a wage floor and increase the minimum wage, many believe, is the action of “big government” and many Americans are scared of “big brother government”. A poll in the Washington Post in December of 2013 found that two-thirds of Americans do in fact support a minimum wage increase. So the real question is what is the correct number? What is the fairest way for the US to arrive at this mystical number? To be fair it would need to be free of bias, dishonesty, or injustice. I am not confident that our elected officials would be able to come up with anything that is legitimately sought, pursued, and done that would be considered “fair”. Mr. Coy went on to share “the first minimum wage was 25¢ ... ... middle of paper ... ...d to raise and support a family? When I worked at the wage floor, I had desire to do better, I wanted to have a family. When my daughter was born, I needed to earn more and did what I needed to do. Why do we feel as a country the answer is raising a minimum wage? When we discuss minimums in other aspects of life, no one accepts it to be the good. Minimum is the base, and if you wanted to raise and support a family you need to be at the median or mean, not at the wage floor. The article addressed 2 approaches to lessen the influence of minimum wage. The good was to increase business and economic growth which would create a greater demand for workers. The bad is the way we are heading and that is decrease in workers and increase in workers skills. While minimum wage is a political topic, maybe less focus on a number and more focus on the growth of our economy.
In this essay, the author
- Explains macroeconomics is the study of the behavior of an economy at the aggregate level. it considers the industrial sector, the services sector or the farm sector but not specific parts of these sectors.
- Analyzes businessweek's article titled making the economic case for more than the minimum wage, written by peter coy.
- Opines that the minimum wage has been on political agendas and debated for a number of years. a poll in the washington post in december 2013 found that two-thirds of americans do in fact support an increase.
- Analyzes how the free market conservatives argue that it's wrong for government to interfere with work contracts. they believe that labor laws distort the market.
- Explains that the article points out that setting the price of labor above equilibrium level causes supply to exceed demand and will lead to more unemployment.
- Explains that the article talked about the card-krueger study, which showed that higher wages reduce turnover and increase job satisfaction. there is a cost to business with turnover.
- Opines that the article makes reference to 17 million workers being directly affected, and 11 million with indirect benefit, about probable raises to preserve pay ladders.
- Questions whether we believe in a minimum wage, or is it political gamesmanship? the subminimum is accepted for handicapped workers and restaurant workers.
- Opines that raising a minimum wage isn't good for raising and supporting families, since minimums are the base of life.
- Analyzes how the article addressed two approaches to lessen the influence of minimum wage. the good was to increase business and economic growth which would create a greater demand for workers.
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- The Minimum Wage Debateanalytical essayDisagreement over government actions occur almost on a daily basis, in economics there are no exceptions. When we look at the topic of minimum wage, there are no doubts that this topic raise numerous controversies. Minimum wage does not only affect the U.S economy as a whole, it is also something that particularly interest economist. It grants economist the opportunity to develop new theories, test them and find solutions. The discussion on minimum wage and how it should be handled is one that have been looked at throughout history, This analysis on the minimum wage controversy is based on a group opinion using guidelines from researches and in class learning.
In this essay, the author
- Analyzes how the minimum wage controversy is based on a group opinion using guidelines from researches and in class learning.
- Explains that minimum wage is the lowest amount that can be paid to an employee per hour, established by the fair labor standard act of 1938.
- Explains that the minimum wage was set in place to reduce poverty levels among the american people and protect against impoverish work conditions in third world countries. the wage floor is flexible from state to state and is liable to change.
- Explains that the minimum wage affects only a small portion of hourly paid workers in the workforce, which is mostly low-skilled workers and young people.
- Analyzes the impact of minimum wages on the labor market, and explains that it makes it easier for employers to hire and less qualified people looking for work.
- Opines that the government should raise the minimum wage gradually and over a prolonged period of time.
- Opines that the issue of minimum wage does not affect all americans, but for those that it does affect, we might ask why the controversy?
990 wordsRead More - Why The Minimum Wage Should Be Raisedopinionated essayMinimum wage first started with the Fair Labor Standards Act of 1938 at twenty-five cents an hour and since has been increased twenty-two times by twelve presidents. When times like the Great Depression occurred, businesses took advantage and paid people very little for their labor. Minimum wage was established to balance the powers between employers and low-wage workers. Even though it may eliminate jobs, I believe it should be raised because it could help grow the economy, reduce poverty, and create new jobs for some Americans.
In this essay, the author
- Opines that minimum wage should be raised because it could help grow the economy, reduce poverty, and create new jobs for some americans.
- Explains that raising minimum wage could help grow the economy and reduce poverty. the federal minimum of seven dollars and twenty-five cents leaves an adult with two children thousands of dollars below the federal poverty threshold.
- Argues that minimum wage should be raised because it would reduce gender and race based income inequality.
- Opines that raising minimum wage would create new jobs and opportunities for people.
- Argues that raising minimum wage would decrease incentives for people to try and get an education to work at higher-paying jobs.
- Opines that raising minimum wage could help grow the economy, reduce poverty, and create new jobs for some americans.
523 wordsRead More - The Minimum Wage Must Be Increasedanalytical essay“Of course, nothing helps families make ends meet like higher wages. … And to everyone in this Congress who still refuses to raise the minimum wage, I say this: If you truly believe you could work full-time and support a family on less than $15,000 a year, go try it. If not, vote to give millions of the hardest-working people in America a raise.”
In this essay, the author
- Opines that raising the minimum wage helps families make ends meet. if you believe you could work full-time and support a family on less than $15,000, go try it.
- Explains that president obama called on congress to raise the national minimum wage from $7.25 to $10.10 an hour.
- Argues that raising minimum wage increases unemployment, especially for unskilled workers, and harms small businesses, including grocery stores and restaurants.
- Explains that the employment rate has improved in years of an increase in minimum wage to account for the depreciation value of the dollar.
- Analyzes how batra proves that an increase in minimum wage, as long as it is not faster than the rise in prices, will not adversely affect the businesses' profits.
- Explains how the mcdonald's franchise owner hires a teenage cook to make ten hamburgers per hour, and their hourly profit from hiring the cook is $3.
- Explains that as long as minimum wage does not increase faster than the rate of inflation, there will not be a decline in the business’s real profit.
- Explains that batra proved that increasing the minimum wage, so long as it does not surpass the rate of inflation, will not harm small businesses nor increase unemployment.
- Analyzes how the economic policy institute's data indicates the real value of the minimum wage, adjusted for inflation, has been declining since its highest point in 1968.
- Analyzes barbara ehrenreich's experiences living paycheck to paycheck, as minimum wage earners do, in her book, nickel and dimed: on (not) getting by in america.
- Explains that the economic policy institute recently reviewed dozens of studies of what constitutes a "living wage" and came up with an average figure of $30,000 per year for one adult and two children, which amounts to $14 an hour.
- Opines that a moderate increase in the federal minimum wage would have little impact on the national economy.
- Opines that a higher minimum wage would stimulate consumption by putting more money in the hands of low-income people who spend their entire paychecks.
- Argues that the minimum wage should be increased in the united states. it does not create unemployment, as many believe, and it helps improve the standard of living for individuals earning minimum wages.
- Analyzes how greenspan's fraud: how two decades of his policies have undermined the global economy.
- Cites chasanov, amy, ehrenreich, barbara, katel, peter, and kale. the value of the minimum wage.
1491 wordsRead More - Raising Minimum Wage In The United Statesexplanatory essayIn the United States, the federal government sets a minimum wage that all employers must adhere by. As of 2014, just over three million workers were getting paid at or below minimum wage, which is currently $7.25 (Haugen). Although many employers are fine with the set amount of minimum wage, numerous workers believe that there needs to be a raise in minimum wage to help support a modest quality of life.
In this essay, the author
- Explains that in the united states, the federal government sets a minimum wage that all employers must adhere to. as of 2014, just over three million workers were getting paid at or below minimum wages.
- Explains that many business owners are against raising minimum wage because they believe that it will end up hurting the economy more than helping it.
- Opines that an increase in minimum wage will spark economic growth and reduce government welfare spending.
478 wordsRead More - The Minimum Wage Must Be Raisedopinionated essayThe minimum wage must be raised. The cost of living has gone up juristically, especially those with families to care for and look after. To be able to work and make enough to support the needs of an individual requires education, and the cost of education has also gone up in the past 20 or so years. This means many workers across the country must work hard and really push themselves to live in that comfortable position to where we still work hard but earn enough to not be uncomfortable and in that of a struggle to succeed in life. Companies should be required to pay workers what they deserve. If the minimum wage in 1968 had kept up with inflation it would be more than ten dollars today. If it kept up with the production of the American people since then it would be up to twenty-one an hour. About twenty million people or thirty percent of all hourly, non-self-employed workers eighteen and older are nearly those minimum wage workers.
In this essay, the author
- Opines that the minimum wage must be raised because the cost of living has gone up juristically, especially for those with families to care for and look after.
- Opines that raising the minimum wage is crucial for families' well-being since the cost of living has skyrocketed.
- Opines that children cannot better themselves if their parents can't pay for college, and their own cost of living. if the minimum wage was increased, it would mean many people better opportunity for themselves.
- Argues that raising the minimum wage would hurt low skilled workers, have little effect on reducing poverty, and may result in higher prices for consumers.
- Opines that raising the minimum wage is a bad idea. higher wages make it more expensive to hire workers.
- Opines that an increase in the minimum wage would have a profound effect on reducing poverty and encourage people to go get jobs.
724 wordsRead More - Pros And Cons Of Increasing The Minimum Wageopinionated essayThe minimum wage is a weird topic at best, The people say they need the money and the other side says it’ll ruin the economy, it’ll only increase job loss of entry level workers but there are pros to this idea.
In this essay, the author
- Opines that the minimum wage is a weird topic at best, the people say they need the money and the other side says it’ll ruin the economy. there are pros to this idea.
- Opines that increasing the minimum wage will help local businesses grow and that's always a good thing.
- Explains that increasing the minimum wage will help end poverty, since some workers are barely getting by in life. if we increase their wages, they'll be one step closer to being out of poverty.
- Opines that if the minimum wage was increased to even 12 dollars an hour it would increase the pool for employers to hire good working people.
- Concludes that increasing the minimum wage will help everyone and improve their lives.
270 wordsRead More - Minimum Wage Hike in the Future?explanatory essayAn increase in the federal minimum wage, currently at $7.25 per hour, was recently proposed in congress by the Democratic party. Now, a group of 75 leading economists gave their support to the Democrats, by explaining that raising the minimum wage could help people who depend on these jobs make ends meet, especially those with families to care for. The Fair Minimum Wage Act was introduced by Rep. George Miller in the House, and Sen. Tom Harkin in the Senate, last March, and basically outlines the suggestion of raising the minimum wage. The Act would amend the Fair Labor Standards Act of 1938, by increasing the federal minimum wage of employees to $8.20 on their first hour of their third month working, $9.15 per hour after their first year on the job, $10.10 an hour after two years, and finally the amount set by the Secretary of Labor after three years. The group supporting the Act consists of seven Nobel laureates, including Joseph Stiglitz and Peter Diamond, as well as multiple former Clinton and Obama administration economists. Not everyone is exactly gung-ho about the idea. Many critics claim that raising the minimum wage will ultimately hurt the economy, by slowing job growth. An increase in minimum wage could spell fewer hours, or less people being hired because of the lack of available funds for an employees pay. Another potential problem with this would be that businesses would have to raise prices of their goods to compensate for the higher pay the staff is receiving. Either way, most experts are not worried about anything passing this year, and it is seen by some as an attempt by the democrats as a way to boost their popularity in the elections.
In this essay, the author
- Explains that a group of 75 leading economists supported the fair minimum wage act, which would increase the federal minimum wage to $7.25 per hour.
- Opines that raising the minimum wage would be a bad thing for small business owners, as they would have to make serious changes to their game plans.
- Opines that the minimum wage is not the biggest reason why people are struggling economically, but their own efforts and habits are the reason.
- Explains the concept of minimum wage is to ensure a fair amount of pay for everyone, regardless of your job. it helps to prevent employers taking advantage of their workers, and helps people struggling to make ends meet.
- Explains that the group includes seven nobel laureates. "minimum wage hike gets boost by 75 economists." cnnmoney.
833 wordsRead More - The Benefits Of Raising The Minimum Wageexplanatory essayMinimum wage is a difficult number to decide on because it affects different income earning citizens in different ways. According to Principles of Microeconomics, by N. Gregory Mankiw, minimum wage is a law that establishes the lowest price for labor that and employer may pay (Mankiw 6-1b). Currently, the minimum wage in the United States is $7.25 per hour. For many years politicians and citizens have argued on what should be the minimum wage that would benefit the economy and society in general. A minimum wage was first established in 1938 to increase the standard of living of lower class workers. To discuss what is better for the country and its citizens, people have to understand what is a minimum wage and what are its effects.
In this essay, the author
- Explains that minimum wage is a law that establishes the lowest price for labor that an employer may pay, according to mankiw's principles of microeconomics.
- Explains that president obama proposed raising the minimum wage from the current $7.25 to $9.00 by 2015. this caused arguments between the rich, small businesses, and the unemployed because it affected each of them differently.
- Explains that obama's proposal is a binding price floor, which incentivizes more people to search for work while disencouraging firms to hire new workers.
- Explains that small businesses are negatively affected by the minimum wage increase because they may not be able to afford to pay it to the workers and dismiss current employees, which decreases production and may eventually run out of business.
- Argues that increasing the minimum wage will increase the economy and society in general.
- Explains that the majority of u.s. citizens are in favor of raising the minimum wage to $9.00, even if some of them believe that it should be raised higher than the president is proposing.
- Explains that even if firms do not benefit from paying a higher minimum wage, this does not determine the decision of raising it or not. social benefits also have to be taken into consideration.
- Cites mankiw, n. gregory. principles of microeconomics. sixth edition ed. boulevard mason, ohio: cengage learning, 2012.
- States that the national conference of state legislators (ncsl). "state minimum wages."
- Explains that minimum wage effects on employment, substitution, and the teenage labor supply: evidence from personnel data. journal of labor economics 31.1 (2013): 155-194.
698 wordsRead More - Increased Minimum Wageanalytical essayThe controversy remains today about whether the federal U.S. minimum wage should be increased. Currently, the United States minimum wage rate is $7.25. Some argue that it should be raised on account of it not currently being an adequate living salary, which is what minimum wage was created for. Minimum wage workers are having to live solely based on this income, thus bringing the question of does it need to be raised.
In this essay, the author
- Argues that the federal u.s. minimum wage should be increased because it isn't an adequate living salary.
- Explains that the first minimum wage in the u.s. was established in massachusetts in 1912. the united states supreme court later changed their views during the great depression.
- Argues that raising minimum wage would help the single parent families struggling to make ends meet. however, there are more arguments as to why this could be a bad idea.
- Explains that if businesses are required to pay their employees more, they will have to raise prices to continue running a successful business.
- Opines that raising the minimum wage would be a bad idea because the current rate is not at an adequate state where someone could live off of it.
670 wordsRead More - Minimum Wage Debate Analysisopinionated essayAs President Obama supported a Senate bill increasing minimum wage from $7.25 to $10.10 per hour; low wage workers began protesting for higher wages up to $15.00 per hour. Some of the studies published found that minimum wage increases may not have a big impact on the economy as other studies published showed that the workers would not benefit from the wage increase.
In this essay, the author
- Explains that the minimum wage debate is nothing new for economists. the battle to identify the effects on american workers and the economy will continue to be at the center of contention.
- Explains that as president obama supported a senate bill increasing minimum wage from $7.25 to $10.10 per hour, low wage workers began protesting for higher wages.
- Argues that raising minimum wage is good for the economy for several reasons, such as raising worker's income, boosts in economy, and higher human capital models.
- Opines that the minimum wage increase is not a probable option because it will reduce employment opportunities and lead to job losses.
- Opines that their position on the minimum wage debate sides with opponents of the increase. in an unstable economy, companies would have to increase prices to support their lower skilled workers.
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