What Are The Positive Effects Of The Consumer Protection Act

The reason it would increase unemployment rate is because the well-known industries and companies would rather hire higher-skill workers instead of people who have no experience. Which would mean people who do not have those skills would have a harder time getting a job. Furthermore, industries and companies become highly competitive against each other and which can also cause unemployment. According to the article “The Minimum Wage: Getting to $15” business will also get hurt by raising the minimum wage. The higher the minimum wage would make it almost impractical for American companies compete with other low-paying foreign countries.

Because the firms ¡°cut back and produce less¡± when they experience recessions, they will employ fewer workers. Therefore, the unemployment rate rises. This increase in unemployment caused by recessions and depressions is called cyclical unemployment. Recessions cause social consequences. During the recessions, the unemployed suffers a lot.

Raising minimum wage to a higher amount than what it currently is will increase the cost of living. This means that the cost of housing food, clothing, utilities, and even gas will rise. A raise in minimum wage could also cause businesses to have to close their doors due to having to pay employees more on their paychecks. Also this will give people a free pass to get a higher pay, but be able to slack at doing their jobs. A raise in wages will make cost in products go up, so then employers will not be able to afford to pay employees the higher minimum wage.

Therefore, increase in minimum will hurt the budget due to more money having to be put in programs and cause the nation more debt. Minimum wage increase will have a negative effect. Businesses will have to cut jobs or increase prices, so they will stay in business without losing any money. Also the nation’s budget will hurt due to more money going into different programs of unemployment and bankruptcy. Though others feel that an increase of minimum wage will cause workers to have more money in their pockets, minimum wage should not be increased because it will increase prices, cut jobs, and hurt the national budget.

Opponents think by the sudden increase would reduce jobs slightly. The job losses to employers increasing prices to deal with the higher wage, which would lower demand and therefore their need for more workers. According to Reisman “the higher wages are, the higher costs of productions are, those who are unemployed else where and who are relatively more skilled will displace workers of lesser skill” (Reisman). His complaint is saying by raising the minimum wage they would have to raise the prices of their products. which makes the quantities of goods and services smaller.

Companies may have to eventually shut down if they are not able to pay their employees like they need to be paid. If the minimum wage increased and businesses/employers have to pay those higher minimum wages (higher salaries/income) to their employees. To offset them having to pay more money to their employees, they offset that extra cost to the customers or consumers generally who shop with them. It creates a ripple effect for a city, county, or region. Prices have been going up without the increase of minimum wage so imagine when if I does happen to go up.

Minimum wages should not be raised. Raising minimum wage will cause employers to decrease their employees working hours which affect the employee and the business. Also, there would be an impact of job losses on a still-fragile economic recovery. Although some may argue that no one who works full-time in America should have to live in poverty, Americans are paid higher wages than the average employee in Mexico. The main reason Americans who work full-time may live in poverty is because of how they spend their money.

The effect of a surplus drives down an individuals reservation wage, as they are willing to do and take anything for work. Minimum wage only makes this fact more severe, as it increases the supply of workers. Minimum wage increases the cost of doing business, and unfortunately in today's economic conditions employers are not able to pass on the extra costs to the consumer. Minimum wage is not helping workers, it is hurting businesses, and to maintain any profit, and follow legislation companies have to cut labour costs somehow. Companies are being forced to take other alternatives because of higher labour costs for unskilled workers.

Technological advancements will cause a rise in the number of unemployed but these unemployed will also search for other jobs but this search is likely to reduce wages. Wage reduction is not a complete way to increase employment. Organizations look out for skilled workers who in turn look for better paying jobs which leaves ever... ... middle of paper ... ...en the degree of social guidance and the unemployment rate of today. For example, the Netherlands has returned to low unemployment while offering high social guidance. In conclusion, an environment in which aggregate negotiation is central to wage determination, not only formal labor market institutions but also good labor groups are important to reducing the rates of unemployment.

If jobs were brought back to America that would allow more people to spend money on various things building... ... middle of paper ... ...s to buy products at a lower price but is it worth it in the end. More people are unemployed and they cannot buy the products and our economy is hurting from it. It looks good when a product is cheaper it attracts more customers but another thing is the quality. If products are created here they may be created with more quality as employees will actually spend more time as they will take pride in creating them as their friends and family will use them. When people create them foreign they do not know who’s going to use them and their getting paid near nothing.