Economy Essay

Economy

Raising the Minimum Salary or Certainly not

Nowadays, a large number of people focus on the lowest wage and there are two behaviour about bringing up the lowest wage. Some people support to improve the minimum wage since they think it can help employees to get bigger wages. Other folks point out that raising the minimum income will damage both persons and the whole society. Generally, there are both advantages and disadvantages of raising the minimum salary. In my opinion, the disadvantages of raising the minimum wage are more than advantages. There are some advantages of increasing the minimum wage. For instance, workers may have a better income and more persons will be willing to work as firms raise the income. In this case, bringing up the minimum wage feels like a good plan to against poverty. Nevertheless , as Romer (2013) highlights: " If the minimum income rises, is definitely income redistributed primarily to poor people, or perform many family members higher up the income step ladder benefit as well? ” If we dig much deeper, we is going to easily find out that scenario becomes more complex by raising the minimal wage. 1st, as the minimum income gets higher, more people are drawn to find a job, which usually poses a fierce competition. As a result, a lot of low-income people who find themselves supposed to receive higher wages will lose their very own jobs mainly because some useful workers alternative them. Another reason why elevating the lowest wage damage individuals is usually that the cost of a higher minimum income will transfer to consumers. In other words, we need to pay more to find the same services and goods, so a lot of low-income households have to make use of their higher wages to purchase a much higher price, that leads to their circumstances being more serious than before. Every one of above are some disadvantages for people if the U. S government raises the minimum income. Raising the minimum income also has a few bad impacts to the whole economy. Depending on what I discovered in microeconomic class, the very least wage is recognized as the price ground. The price flooring will cause a surplus supply and fail to...

Sources: Romer, C. D. (2013, March 2). The Bare minimum Wage, Employment and Salary Distribution -- NYTimes. com. The New York Times -- Breaking Information, World Media & Multimedia system. Retrieved 03 4, 2013, from http://www.nytimes.com/2013/03/03/business/the-minimum-wage-employment-and-income-distribution.html?src=xps&_r=0

Robent. They would, F., & Bens, B. (2012). Effectiveness, Exchange, plus the Invisible Hand in Action. Rules of Microeconomics (p. 174). Pembroke: University of New york at Pembroke.