Minimum Wage gets a raise! (possibly)
In an economy where some people are living paycheck to paycheck, people don't spend very much because they're make minimum wage. There’s a demand for more jobs, but there’s also a demand to better the economy. The Government wants people to spend more money so that it’ll boost the economy, but for those with families and living on a low income, spending money is just out of the question. The only way for the economy to get the boost it needs is to raise minimum wage so that the lower class economy will spend more. Also raising minimum wage will help the poverty rate decrease. Raising minimum wage might cause a disturbance with some owners but there's no need to worry. Some owners might not hire more people to make up for the raised paychecks but a study done by Alan Krueger proves that raising minimum wage had no effect on the business itself.
So this means that the Government might make businesses' raise minimum to help fix the economy.
(If they do decide to raise worker's paycheck, they should start with raising teacher's salaries!)
6 comments:
Excellent plug to raise teacher salaries. How else could a higher minimum wage benefit the government?
Raising the minimum will let more people have the abilities to take better care of themselves. Also it is true that SPENDING drives the economy. Raising the minimum wage for workers seems help the economy work better, more demand for good will be needed which might help unemployed people.But would people really spend the money since everything is still so expensive?Would they just save it?Would they have to pay higher taxes?How effective can this be？
I think,how to let more people spend money is something business need to solve. Let the lower-income families get involved in the economy will really help both the producers and consumers. If lowering the price of living cost and raising the minimum can work together, the economy might be better.
Like Wndy said, if the Governmnt raises minimum wage it would allow the lower income families to get involved in the economy. The lower income faimilies could have medical insurance for here entire family. Having medical insurance would allow them to have frequent check ups with doctors. (That would just give doctors more money). Also Hospitals could employ more workers. With more money, lower income families would have the oppurtunity to send there cildren to college and that would result in an education and possibly a degree. After college the graduate would get a job and ,hopefully flourish, repeat the process of sending ther child t collge and so on.
Raising minimum wage should help increase spending in the down economy but there is one issue that comes to mind. Will a larger paycheck cause burger flipping to become competitive. The job market is already competitive and even some restaurants are putting applicants through a rigorous interview process. My question is if places are going to start paying their employees more are they going to require a more specialized person for the job. Will they require high school degrees, and if so what will dropouts do for a living? I don't know that this is a reality, but its a thought.
The reason for minimum wage being so low is so that companies can afford to open more jobs, well, at least that's how they're justifying it. There are always going to be greedy companies that are only paying their workers so much and only opening up so many jobs so that the executives can have a lot more money, but it's a legitimate way to justify such a low wage. Raising minimum wage may increase the income for those that have these low paying jobs, but it may also decrease the amount of jobs that certain businesses are offering.
Great point about raising minimum wage, but what would happen to small businesses that are struggling? would the have to let people go?
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