The latest topic that has impacted recent changes in the federal minimum wage on a low-wage labor market is the fast food industry. Some fast food employees have argued to have their minimum wage increased to $15. Currently, the Federal minimum wage is between $7.25 to $15 an hour for all workers (Pollin, & Wicks-Lim, 2016). Congress, they have refused to increase American’s wages; some franchises are relying on their revenue to increase employee’s wages which are not always profitable. Supporters have indicated that raising minimum wage would resolve the economic and social problems we have today. Labor activist is fighting to raise wages to $15 an hour which brought a nationwide strike from all fast-food workers stating it is hard to survive on minimum wages. The determination depends on the perception of the problem in the current economics in the labor markets. Many support the change to increase fast food workers an increase in minimum wage to $15 as they believe an increase will provide a positive change for the workers and economy, while most think it will do more harm than good. Due to the number of supporters, it caused a strike from many activists to protest and demand higher pay and allowing workers for form a union throughout America. Many studies show to have a positive impact on employment in fast food organizations but also show the increase in cost to maintain current employment staff. With an increase, business will need to increase prices to compensate for the extra cost. The effect of minimum wage on the food prices for meals will lead to an increase in product prices (Card, & Krueger, 2000, p. 787). Due to recent uproars in increasing minimum wage for fast food workers, many fast food organization have now installed electronic computer systems that greet consumers and ask them to tap to place their orders. Most businesses are forced to place a reduction on workforce to maintain the increase on wages. With higher prices, due to minimum wage can also led to higher product demand (Neumark., et al. p. 629). By doing this, franchises are having to cut cost on employees’ salaries and reduce the number of workers needed. Along with cutting cost, they are also looking for other alternatives to alleviate cost, like a reduction in benefits and a limit or termination in raises or bonus for employees. Many consumers have stated they would rather pay more for better service rather than having a lower paid work not care about the service. Allowing organization to limit their staff to pay other staff a greater salary to ensure good service is given. Minimum wage might give employees the incentive to increase their work performance. The truth is, service is not becoming better, employees might not have pride in the work they perform and is employee for a pay check. Majority of the time, services remained the same with a full staff available. Being in the service industry, you must want
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By abolishing minimum wage, the government can replace it with an income basic policy. An income basic policy that allows an employee to discuss the pay amount for a position with an employer. Basic income has started to attract attention of politicians, like Bernie Sanders, and policy makers around the country along with several articles like the “New York Times”. It is a policy that is considered to have “no strings attached” option that reduces the income inequality, poverty, unemployment, balance the labor markets and start bringing meaning to workers lives and addresses the economic and political feasibility (Dimick, …show more content…
Business owners should know the balance within their organization between your labor and other expenses and consider non-wage benefits or training options. This will allow them to know and understand where they can have some flexibility to for an increase for the individuals who qualify for better pay. By allowing businesses to determine the type of pay allowed for a position along with providing the skills needed to employees to guide them in the right direction. Minimum wage will continue to be an issue until we as a nation can come to the understand the needs of employees and find a middle ground that would offer more opportunities than increase the dollar
By abolishing minimum wage, the government can replace it with an income basic policy. An income basic policy that allows an employee to discuss the pay amount for a position with an employer. Basic income has started to attract attention of politicians, like Bernie Sanders, and policy makers around the country along with several articles like the “New York Times”. It is a policy that is considered to have “no strings attached” option that reduces the income inequality, poverty, unemployment, balance the labor markets and start bringing meaning to workers lives and addresses the economic and political feasibility (Dimick, …show more content…
Business owners should know the balance within their organization between your labor and other expenses and consider non-wage benefits or training options. This will allow them to know and understand where they can have some flexibility to for an increase for the individuals who qualify for better pay. By allowing businesses to determine the type of pay allowed for a position along with providing the skills needed to employees to guide them in the right direction. Minimum wage will continue to be an issue until we as a nation can come to the understand the needs of employees and find a middle ground that would offer more opportunities than increase the dollar