A Changing Market In the changing and fast paced world that humans live in today, many things affect the way that one’s life functions. Most of all, people are constantly purchasing some sort of product or good for themselves. Most of the products that are purchased everyday have a set price floor that is controlled by the government. Although to many, this may seem very unimportant, it affects the market system that all consumers are a part of in some shape, form or fashion. While price floors impact many agricultural goods, it also impact one major area of interest, minimum wage. Understanding the idea of price floors in the market system is a must. The most important things are the effects of price floors within the market system, a history
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The benefits of it rising have already been mentioned. It is simply just more money being made for people without the unemployment rate going up. Most people would not argue that but there are other benefits as well. One argument that was published in “Business Week” states that “The federal minimum wage was always meant to be a floor, not a ceiling. Today, someone earning the minimum would have to work 749 hours to afford one year of health insurance premiums” (The Current Wage Is Far Too Low). That argument is simply saying that minimum wage workers cannot survive on minimum wage without having to struggle to afford basic necessities. Many studies have shown that raising the minimum wage will not affect the market system that much. This is because unemployment will not rise as much as people would think due to the American economy being as strong as it is. In addition to that, Germany has a higher wage than the US and they have a weaker economy. Although comparisons should not be made from country to country because of many other factors, it is very easy to see why the minimum wage should rise due to our strong economy and the small changes it will present in the market system. The market system is a complicated thing with a lot of different factors. It includes price floors, price ceilings, consumers, producers and many more things. These things all play a vital role to the system functioning properly but price floors will always be a big impact. Price floors effect everything from the universal market system all the way to minimum wage. Overall, the market system is constantly changing and will continue to change as long as the economy
The benefits of it rising have already been mentioned. It is simply just more money being made for people without the unemployment rate going up. Most people would not argue that but there are other benefits as well. One argument that was published in “Business Week” states that “The federal minimum wage was always meant to be a floor, not a ceiling. Today, someone earning the minimum would have to work 749 hours to afford one year of health insurance premiums” (The Current Wage Is Far Too Low). That argument is simply saying that minimum wage workers cannot survive on minimum wage without having to struggle to afford basic necessities. Many studies have shown that raising the minimum wage will not affect the market system that much. This is because unemployment will not rise as much as people would think due to the American economy being as strong as it is. In addition to that, Germany has a higher wage than the US and they have a weaker economy. Although comparisons should not be made from country to country because of many other factors, it is very easy to see why the minimum wage should rise due to our strong economy and the small changes it will present in the market system. The market system is a complicated thing with a lot of different factors. It includes price floors, price ceilings, consumers, producers and many more things. These things all play a vital role to the system functioning properly but price floors will always be a big impact. Price floors effect everything from the universal market system all the way to minimum wage. Overall, the market system is constantly changing and will continue to change as long as the economy