The fast-food industry is changing everyday. There are new products being introduced in the market and new slogans being created. The companies in the fast-food industry will do their best to make the greater burger, and to make bigger and better fries.
Consumers would have to spend more money for the same goods and as a result of that the poverty line would actually be raised if the minimum wage were to be raised. I will discuss into further detail about these topics and who the raised wages would actually affect, and the answer is surprising.
Minimum wage is currently at 7.25 (Furman) if minimum wage goes up so does everything else, so it wouldn’t make a difference. Food cost will go up, such as milk sugar, and everything else we use on a daily basis. Not only that but, It could cause a store to shut down due to having to pay employees twice as much as before. Labor cost would be high and unreasonable. If the prices of items or product being sold doesn’t go up.
the poverty levels would increase dramatically. If the economy were to increase its minimum wage it would cause a skyrocket of prices on everything throughout the country. Also the people who would be making minimum wage there hours would decrease lower than ever before. This also then means that if we were to increase pay that housing prices would skyrocket as well, leading to higher poverty levels. When we add all this up and raise pay people would begin to realize why pay is how it
Raising the minimum wage will help keep up with inflation. For example, this piece of evidence supports the fact that poor families are even poorer than what was expected. The article "pros-and-cons-of-raising-the-minimum-wage "stated, "The minimum wage hasn't kept up with inflation. As a result, the pay of man workers, particularly those with families of three or more people, are no well below the poverty level." Minimum wage is already so low to the point that it is considered poverty.
The United States economy is still soft and prone to falling apart, and there is a debate that is on going as to whether the minimum wage should be increased or decreased. The minimum wage is a well known price floor, and that is what we need for our economy right now . I personally believe that we should not increase the minimum wage, but decrease it instead. I would rather have the minimum wage lowered than increased because that will only lead to negative side effects. For example, if the minimum wage is increased then the government will need to mint more money and the effect of minting more money is inflation. This will cause the American dollar to go down and worsen the economy even more. Another thought is that what the United States needs now are jobs. If the minimum wage is increased then existing jobs will want their workers to have more experience and for those people that are in dire need to a job will have a lower chance of getting the job because they
There is a lot of controversy on this topic because people assume that it would be at least adjusted to inflation. John Komlos, a professor emeritus of economics and of economic history at the University of Munich said that in 1968 when the minimum wage peaked adjusted to inflation it would be $10.90 (Komlos). One might wonder why the US is still at a minimum wage of $7.25. Aaron Pacitti who is a Professor of Economics at Siena College claims that even though companies like Walmart and Target announced they would increase wages for their lowest paid employees to $9 per hour and McDonald's will start paying its workers $1 more per hour than the local minimum wage the raise of the minimum wage to $15 would directly affect 44.9 employees (Pacitti). This is because it doesn’t just affect the people working at the lowest it affects everyone making $7.25-$15 and hour. If a higher skilled worker is getting payed $15 an hour instead of $7.25 when the minimum wage is change they would want a change in their salary as well because they would feel like they are doing better work for the same amount. If this keeps going up the chain then there is a serious problem on how the money is distributed in a company. Even though some companies will accept that fact that some people on the top of the ladder won’t get a raise other companies will find another way to find the funds somewhere
The real question everyone wants to know is, is the minimum wage going to increase or will it remain the same? Let 's go back in time to where it all started in 1938. President Franklin D. Roosevelt set the minimum wage to twenty-five cents an hour. FDR had a great statement about minimum wage and it 's not for little kids. The statement proposes "no business which depends for existence on paying less than living wages to its workers has any right to continue in the country" (Olsen). This is the original thought behind what we now know, today, as minimum wage. The problem is that other salaries have risen exponentially and the minimum wage has remained stagnant and has not kept up with inflation.
There will be inflation or rising costs for basic necessities such as housing, food, utilities, transportation and child care. Because of inflation, the minimum wage forces most of the people into poverty. If a person works full-time and his minimum wage is only $14500, and if he has two children this income is more than $4000 below the poverty line. So, increasing the minimum wage would rise almost a million people above the poverty line. But if minimum wages increases, it would result in the loss of jobs because employers would lay off workers to offset the additional labor cost. But, raising the minimum wage has multiple benefits. As an increase to minimum wage moves families above the poverty threshold, their need for public assistance
Due to the costs of inflation the idea of a higher federal minimum wage would not be effective because consumer goods and other service prices will also rise. A rise in the minimum wage could still cause the same economy we have now. For
If we look this in an economist’s perspective, the businesses that will be directly affected by the new minimum wage are factories, supermarkets, fast food franchises, small hotels, restaurants and grocery stores, as well as transportation businesses. As a consequence, the increase in the cost of production will be transferred to the consumers. Those people who are all well paid will have less headache dealing with the increase in the cost of living. But how about the college students, the people who just started to work? They need to deal with the increase in the price of food, as the transportation cost has increased. These people who can barely make ends meet will find eating outside to become more expensive than before and need to cook food for at home. Certainly business like restaurants and hotels will suffer, because if the firms increase their prices, they would get fewer customers, but if they stick to their current charged, the businesses would get lower profits as the employees’ wages have increased. Certainly, a little inflation rate is favorable for economic growth, as people will invest on assets when they expect the price will increase. However, if the level of inflation is too high, and there are too many goods where prices are inflated, people will afraid to spend their money, thus the economy will
As prices continue to increase in every day expenses, it becomes hard for us to keep up and be able to provide for our family or get even the basic necessities that we may need. People are saying that with more money, they will spend more back to the economy, thus helping it. Others say that if they are to raise the minimum wage this could cause for job lay-offs. With having to pay more per employee, companies now have to be able to provide the money. This could be a bit of a problem for the employees, because now they are at threat of being jobless. If companies have to be able to pay their employees more, they have to be able to raise their prices on the goods that they are selling to be able to suffice for the money that the company is giving to their employees. This would mean that even though we are making more, we are still spending as much in return. If minimum wage is to be brought up this
The real question everyone wants to know is, is the minimum wage going to increase or will it remain the same? Let's go back in time to where it all started in 1938. President Franklin D. Roosevelt set the minimum wage to $0.25 cents an hour. FDR had a great statement about minimum wage and it's not for little kids. The statement proposes "is the amount of money a family can make in order to survive." Originally that was what the minimum wage was established as. Problem is, other salaries have risen exponentially and the minimum wage has remained stagment and has not kept up with inflation. With every new president there has been an increase in minimum wage, whether it was a big jump or just simply $1.50
The probability of minimum wage increasing without influencing inflation is low. Many consumer goods rely on minimum wage or close to minimum wage workers for production, shipping, and retail, meaning that if wages increase, the price of these goods will also increase.
If the minimum wage is raised to living wage, people will have harder time getting a job because employers will inquire more experience and education on their employees prior to hiring them. In addition employers will be forced get rid of many employees in order to maintain their profit. Employers will also increase the price of their products. This will have a huge draw back on the economy. The rate of unemployment will rise as well.