Minimum Wage
Raising minimum wage is like is like dressing up a monkey. The clothing makes him look better, but yet you still have a monkey. Everything that looks good isn’t always good. Raising minimum wage may look or sound good, but the effects of society with the increase will be traumatic and not in a good way. If the minimum wage is increased where does all the extra money come from? If the minimum wage is expanded, so will the prices of everything. When consumers pay more for goods, they consider the quality, quantity, service, and the price; basically debating if the product is worth their money. When minimum wage increase everyone 's wages will increase as well, skyrocketing prices for goods, this is where inflation sets in. Inflation …show more content…
This is because the federal law does not demand you to pay every worker under certain circumstances. Independent contractors, for example, the federal law does not require you to pay them minimum wage, only the employees are inside out to this. This also goes for workers on small farms, outside sales people, a newspaper deliverer, apprentices, etc. The government has set the dollar amount that may be paid hourly to all workers that are involved in Interstate commerce or production of goods for commerce. These workers who are not expected to be paid minimum wage are called domestic workers or people who are paid to help with menial tasks such as cleaning or housekeeping. These domestic workers are covered by minimum wage laws according to the federal labor standards Act (FLSA). Overall, the federal government has set a national minimum wage that covers all occupations and jobs. Each state has taken this wage and increased it and some even had wages set below the federal wage. A low-wage results in no applicants or applicants with little to no job experience at all. In general, the higher the wage is the better the applicant pool. An applicant pool is the number of people who have applied to an open position. There are many factors that contribute to why employers would settle for less, reasons, such as ignorance to the situation or desperation. This is distinctly why minimum wage …show more content…
First off, raising the minimum wage decreases employment. But, how? The book, The Effects of a Minimum Wage Increase on Employment and Family, states that higher wages lead to an increase of cost to employers of producing goods and services. The cycle goes as follows, wages increase, businesses raise prices and consumers buy less. Within this process is a scale effect. The purpose of a scale effect is to purposely reduce the amount of goods produced as a result of consumers buying less because of inflation. This causes fewer employees to be hired, scale effects, reduces both high and low waged employment workers. Increasing the minimum wage affects low-waged workers and high waged workers. After the increase in minimum wage, businesses maintain the difference in pay that previously existed in order for supervisors to be paid more than the people they supervise. Although increasing minimum wage will increase income for low wage workers, it will still reduce employment as a
Raising minimum wage is like is like dressing up a monkey. The clothing makes him look better, but yet you still have a monkey. Everything that looks good isn’t always good. Raising minimum wage may look or sound good, but the effects of society with the increase will be traumatic and not in a good way. If the minimum wage is increased where does all the extra money come from? If the minimum wage is expanded, so will the prices of everything. When consumers pay more for goods, they consider the quality, quantity, service, and the price; basically debating if the product is worth their money. When minimum wage increase everyone 's wages will increase as well, skyrocketing prices for goods, this is where inflation sets in. Inflation …show more content…
This is because the federal law does not demand you to pay every worker under certain circumstances. Independent contractors, for example, the federal law does not require you to pay them minimum wage, only the employees are inside out to this. This also goes for workers on small farms, outside sales people, a newspaper deliverer, apprentices, etc. The government has set the dollar amount that may be paid hourly to all workers that are involved in Interstate commerce or production of goods for commerce. These workers who are not expected to be paid minimum wage are called domestic workers or people who are paid to help with menial tasks such as cleaning or housekeeping. These domestic workers are covered by minimum wage laws according to the federal labor standards Act (FLSA). Overall, the federal government has set a national minimum wage that covers all occupations and jobs. Each state has taken this wage and increased it and some even had wages set below the federal wage. A low-wage results in no applicants or applicants with little to no job experience at all. In general, the higher the wage is the better the applicant pool. An applicant pool is the number of people who have applied to an open position. There are many factors that contribute to why employers would settle for less, reasons, such as ignorance to the situation or desperation. This is distinctly why minimum wage …show more content…
First off, raising the minimum wage decreases employment. But, how? The book, The Effects of a Minimum Wage Increase on Employment and Family, states that higher wages lead to an increase of cost to employers of producing goods and services. The cycle goes as follows, wages increase, businesses raise prices and consumers buy less. Within this process is a scale effect. The purpose of a scale effect is to purposely reduce the amount of goods produced as a result of consumers buying less because of inflation. This causes fewer employees to be hired, scale effects, reduces both high and low waged employment workers. Increasing the minimum wage affects low-waged workers and high waged workers. After the increase in minimum wage, businesses maintain the difference in pay that previously existed in order for supervisors to be paid more than the people they supervise. Although increasing minimum wage will increase income for low wage workers, it will still reduce employment as a