Economic Change from an increased Minimum Wage?
BUSI 620
Andrew Palmieri
Introduction
I need a raise! They don’t pay me enough to do this job. Each of these statements have been uttered by many of us a time or two in our professional lives. It seems as time progresses items and services are becoming more expensive and the wages don’t seem to follow the same trend. In fact due to the ever increasing cost of living across the country, many of politicians have staked their political agenda surrounding one topic we all have an opinion on. That topic is on the minimum wage for all across the nation. This paper will not attempt to dive into the craziness that is American politics, however it will seek to better understand …show more content…
The impact that a change on the minimum wage would have on the overall economy is for the most part completely subjective. Those economists and individuals affiliated with a political party that believes it is necessary to increase, feel as though there is no evidence to support a direct relationship between increasing the wage and cost of living. While vice versa those who are against the minimum wage being increased feel there is no evidence that the change would in fact improve the overall well being of the economy or individual worker. Depending on which side you tend to lean on politically, then you shall find the information needed to support your stance and feelings on the impact this change could have. However it is best to conclude after researching thoroughly on this topic this semester. If the minimum wage was to increase there is undoubtedly an increase in most organizations production costs, since the labor rate should go up. As we know the only way for a business to stay profitable is to control its costs and find the perfect medium where cost is equal to the benefit. If the costs go up then likely the price of all that is produced from it will likely increase as
BUSI 620
Andrew Palmieri
Introduction
I need a raise! They don’t pay me enough to do this job. Each of these statements have been uttered by many of us a time or two in our professional lives. It seems as time progresses items and services are becoming more expensive and the wages don’t seem to follow the same trend. In fact due to the ever increasing cost of living across the country, many of politicians have staked their political agenda surrounding one topic we all have an opinion on. That topic is on the minimum wage for all across the nation. This paper will not attempt to dive into the craziness that is American politics, however it will seek to better understand …show more content…
The impact that a change on the minimum wage would have on the overall economy is for the most part completely subjective. Those economists and individuals affiliated with a political party that believes it is necessary to increase, feel as though there is no evidence to support a direct relationship between increasing the wage and cost of living. While vice versa those who are against the minimum wage being increased feel there is no evidence that the change would in fact improve the overall well being of the economy or individual worker. Depending on which side you tend to lean on politically, then you shall find the information needed to support your stance and feelings on the impact this change could have. However it is best to conclude after researching thoroughly on this topic this semester. If the minimum wage was to increase there is undoubtedly an increase in most organizations production costs, since the labor rate should go up. As we know the only way for a business to stay profitable is to control its costs and find the perfect medium where cost is equal to the benefit. If the costs go up then likely the price of all that is produced from it will likely increase as