A compelling, controversial flare within the past few months is the issue of the monetary value of one's time, or more specifically, the current rate of minimum wage within the United States. Ongoing wages range depending on the state, but the government has set a federal limit at $7.25, as set by the Fair Labor Standards Act of 2009, however states can add to that amount depending on the area’s own laws and regulations. Twenty-one states have the minimum wage set higher than the national average; including New York, California, Alaska, and our very own Oregon. These rates range from an additional 25 cents to just over two dollars more. Americans have presented a petition to raise the limit to $15 an hour to a ‘living wage’, while many argue
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less human labor will be employed at $15 an hour than would have been employed if the minimum wage had not risen to that amount. And people who would like to have a job, but now cannot have one and that’s bad news.” Previously, the limit would have not have been enough to live on and this rate would resolve the money woes of the low wage worker. The contention with this is that not as many people would be able to obtain a job as businesses will not be able to afford to pay 50% more for the same number of staff as before, or allow all of these employees to get overtime. This will transfer from one business to the next, creating a domino effect across the United States, forcing struggling businesses to lay off excess workers they cannot afford to pay. Even large companies chains such a McDonald's, Macy’s, Walmart, and others are managed by local people and struggle just as a singular business. People who originally would have been able to get some sort of income, or even had the ability to get a second one of these jobs, even though not livable, would be lucky to get any kind of …show more content…
Businesses do not want to go out of business at any cost and if they are paying young, inexperienced workers $15 an hour they will have to make up the lost money in salaries by building the prices for goods and services. A simple hamburger at McDonald's from the value menu will go from $1.50 to up to $5. Inflation is described by The Federal Reserve Bank Of San Francisco in stating, “Demand-pull inflation occurs when aggregate demand for goods and services in an economy rises more rapidly than an economy’s productive capacity,” which shows that when the production of an employee stays the same but the money given is altered then it will change the economy through the affected price of goods correlated with the output. This is where it hits the consumer, and even the employee as they will be consumers at some point as well. A butterfly effect would occur as companies would charge more for products so they can pay their workers, so the workers would have to pay more for products, leading to the minimum wage to have to be raised to create a “livable wage” for the workers based around this new inflated economy. Inflation rates will skyrocket until the $15 an hour wage is proportionally the same as it would have been at a $7.25. Over time, the value
less human labor will be employed at $15 an hour than would have been employed if the minimum wage had not risen to that amount. And people who would like to have a job, but now cannot have one and that’s bad news.” Previously, the limit would have not have been enough to live on and this rate would resolve the money woes of the low wage worker. The contention with this is that not as many people would be able to obtain a job as businesses will not be able to afford to pay 50% more for the same number of staff as before, or allow all of these employees to get overtime. This will transfer from one business to the next, creating a domino effect across the United States, forcing struggling businesses to lay off excess workers they cannot afford to pay. Even large companies chains such a McDonald's, Macy’s, Walmart, and others are managed by local people and struggle just as a singular business. People who originally would have been able to get some sort of income, or even had the ability to get a second one of these jobs, even though not livable, would be lucky to get any kind of …show more content…
Businesses do not want to go out of business at any cost and if they are paying young, inexperienced workers $15 an hour they will have to make up the lost money in salaries by building the prices for goods and services. A simple hamburger at McDonald's from the value menu will go from $1.50 to up to $5. Inflation is described by The Federal Reserve Bank Of San Francisco in stating, “Demand-pull inflation occurs when aggregate demand for goods and services in an economy rises more rapidly than an economy’s productive capacity,” which shows that when the production of an employee stays the same but the money given is altered then it will change the economy through the affected price of goods correlated with the output. This is where it hits the consumer, and even the employee as they will be consumers at some point as well. A butterfly effect would occur as companies would charge more for products so they can pay their workers, so the workers would have to pay more for products, leading to the minimum wage to have to be raised to create a “livable wage” for the workers based around this new inflated economy. Inflation rates will skyrocket until the $15 an hour wage is proportionally the same as it would have been at a $7.25. Over time, the value