Consumers today don 't directly see the behind the scenes actions and grievances of workers and employees within franchises and companies. Though on the surface raising wages does not seem problematic, if one were to put on the hat of an economist they would see the significant repercussions that could result. James Surowiecki and Michael Saltsman both present ideas regarding the complex topic of how to properly improve the lives of those in the workforce in an economy that is suffering in their articles “The Pay Is Too Damn Low” and “To Help the Poor, Move Beyond ‘Minimum’ Gestures.” Surowiecki believes that though there are other ways to fight poverty, simply raising the minimum wage will help drastically. In contrast, Saltsman believes that
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Large firms or companies that earn large profits employ huge numbers of individuals, and these individuals are paid well at a standard rate. However, employees that work for fast food franchises or retail companies are the ones that have truly become more vocal about their wages. These companies, such as large firms, employ large numbers of employees, but their workers receive low wages with the purpose of keeping prices cheap for consumers and overall they have low profit margins. In addition to the specific details about the grievances that workers have, Surowiecki explains how demographic changes play into the demand for an increase in wages. During the changing economic times, minimum wage jobs increasingly became held by individuals who are trying to support their families versus serving as a job for teenagers or young adults. If pay for employees were to increase, an overall rise in cost of products would increase as well. As Surowiecki concludes his article, he states that, “Realistically, then, a higher minimum wage can be only part of the solution. We also need to expand the earned-income tax credit and strengthen the social insurance system” (Surowiecki). In Surowiecki’s article, he does elude that there are other ways to help those in poverty, while also enforcing the …show more content…
Also, Saltsman includes in his article that “economists from American and Cornell Universities examined data from 28 states that raised their minimum wages between 2003 and 2007, and found no associated reductions in poverty” (Saltsman). Many people in poverty will not be reached by simply raising minimum wage, and Saltsman gives evidence from the Census Bureau that shows that over half of people living in poverty do not work, therefore they do not need a raise in wages, they just need a wage. In addition to stressing the importance of creating jobs to decrease poverty, Saltsman encourages the necessity for support for Earned Income Tax Credit (EITC). Again, despite the fact that “raising the minimum wage” sounds like a good idea, economists are encouraging politicians to further implore EITC because “it has been proven to boost employment and incomes, without the unintended consequences of a wage hike” (Saltsman). Through the process of encouraging EITC, the lives of people in poverty will be improved without wages being increased and in turn creating a market full of higher costs for
Large firms or companies that earn large profits employ huge numbers of individuals, and these individuals are paid well at a standard rate. However, employees that work for fast food franchises or retail companies are the ones that have truly become more vocal about their wages. These companies, such as large firms, employ large numbers of employees, but their workers receive low wages with the purpose of keeping prices cheap for consumers and overall they have low profit margins. In addition to the specific details about the grievances that workers have, Surowiecki explains how demographic changes play into the demand for an increase in wages. During the changing economic times, minimum wage jobs increasingly became held by individuals who are trying to support their families versus serving as a job for teenagers or young adults. If pay for employees were to increase, an overall rise in cost of products would increase as well. As Surowiecki concludes his article, he states that, “Realistically, then, a higher minimum wage can be only part of the solution. We also need to expand the earned-income tax credit and strengthen the social insurance system” (Surowiecki). In Surowiecki’s article, he does elude that there are other ways to help those in poverty, while also enforcing the …show more content…
Also, Saltsman includes in his article that “economists from American and Cornell Universities examined data from 28 states that raised their minimum wages between 2003 and 2007, and found no associated reductions in poverty” (Saltsman). Many people in poverty will not be reached by simply raising minimum wage, and Saltsman gives evidence from the Census Bureau that shows that over half of people living in poverty do not work, therefore they do not need a raise in wages, they just need a wage. In addition to stressing the importance of creating jobs to decrease poverty, Saltsman encourages the necessity for support for Earned Income Tax Credit (EITC). Again, despite the fact that “raising the minimum wage” sounds like a good idea, economists are encouraging politicians to further implore EITC because “it has been proven to boost employment and incomes, without the unintended consequences of a wage hike” (Saltsman). Through the process of encouraging EITC, the lives of people in poverty will be improved without wages being increased and in turn creating a market full of higher costs for