Paid Production Yes, raising the minimum wage has the possibility of hurting companies, but when will we start caring about those making the minimum wage? With minimum wage also being referred to as the living wage, and living wage is the minimum salary that is needed to buy all of life’s necessities, then shouldn’t the minimum wage should reflect and be held to those standards? From my own personal experience from working a job not too long ago at $7.50 an hour, which is 25 cents above the minimum wage, it is unlikely that one could live off of minimum wage. When I was making this wage, I did not even obtain enough money to apply for a credit card or certain loans needed for a car or my education for that matter. So, whenever you take
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A census conducted by Susan Helpful and Ryan Noonan, who are a part of the U.S. Department of Commerce, Economics and Statistics Administration, give three main examples on how higher wages can create more success. The three examples are listed as “First, paying higher wages allows firms to attract workers with more and better skills. Second, firms that pay their employees more are effectively able to buy increased morale, lower turnover, and higher productivity from employees who are committed to keeping a good job. Third, high-road firms adopt other practices that increase the return to having skilled and motivated workers” (Helper). The scatter plot graph in this study showed the trend of the more you pay a worker, the more value they add to the company. The numbers in the graph to support this claim are exemplified as paying a worker 40,000 dollars, they add roughly 100,000 dollars to the company versus if you were to pay an employee as much as 80,000 the employee adds 250,000 dollars to the company’s value (Lerch). By doubling the workers’ pay you are more than doubling their added value to the company so this is a win-win case because the workers earn more, in addition to the companies becoming more valuable. Consequently, raising workers’ pay, in theory you could be providing an …show more content…
The inflation rate is defined by the financial dictionary as, “A measure of how fast a currency loses its value. That is, the inflation rate measures how fast prices for goods and services rise over time, or how much less one unit of currency buys now compared to one unit of currency at a given time in the past” (Inflation Rate). Many of the concerns are considering that raising the minimum wage would increase inflation rates. “The main causes of inflation are either excess aggregate demand (economic growth too fast) or cost push factors (supply-side factors)” (Causes of Inflation). The only way that minimum wage will have an immediate impact on the inflation rate will be if it is raised to an extreme because if the minimum wage is just elevated from 7.25 to 8.50 an hour, working 40 hours a week, you go from making 15,080 dollars before tax to 17,680 dollars before tax which is not a significant enough difference to be concerned with inflation rates. Though not much of an increase, it is enough to help support those who are working the minimum
A census conducted by Susan Helpful and Ryan Noonan, who are a part of the U.S. Department of Commerce, Economics and Statistics Administration, give three main examples on how higher wages can create more success. The three examples are listed as “First, paying higher wages allows firms to attract workers with more and better skills. Second, firms that pay their employees more are effectively able to buy increased morale, lower turnover, and higher productivity from employees who are committed to keeping a good job. Third, high-road firms adopt other practices that increase the return to having skilled and motivated workers” (Helper). The scatter plot graph in this study showed the trend of the more you pay a worker, the more value they add to the company. The numbers in the graph to support this claim are exemplified as paying a worker 40,000 dollars, they add roughly 100,000 dollars to the company versus if you were to pay an employee as much as 80,000 the employee adds 250,000 dollars to the company’s value (Lerch). By doubling the workers’ pay you are more than doubling their added value to the company so this is a win-win case because the workers earn more, in addition to the companies becoming more valuable. Consequently, raising workers’ pay, in theory you could be providing an …show more content…
The inflation rate is defined by the financial dictionary as, “A measure of how fast a currency loses its value. That is, the inflation rate measures how fast prices for goods and services rise over time, or how much less one unit of currency buys now compared to one unit of currency at a given time in the past” (Inflation Rate). Many of the concerns are considering that raising the minimum wage would increase inflation rates. “The main causes of inflation are either excess aggregate demand (economic growth too fast) or cost push factors (supply-side factors)” (Causes of Inflation). The only way that minimum wage will have an immediate impact on the inflation rate will be if it is raised to an extreme because if the minimum wage is just elevated from 7.25 to 8.50 an hour, working 40 hours a week, you go from making 15,080 dollars before tax to 17,680 dollars before tax which is not a significant enough difference to be concerned with inflation rates. Though not much of an increase, it is enough to help support those who are working the minimum