States take lead on minimum wage
You may or may not have heard about the raising of minimum wages throughout the states. The federal government has not taken their power to raise the minimum wages. Because of their failure to do so, the states have taken it upon themselves to try and raise wages. The minimum wage in states has been rising since 2004. More in the past six months. Many people agree with the increase. I believe that some business owners may not agree with this type of change. Small business owners could be afraid of losing money, because of having to pay their workers more. Workers could start being fired, because of their employers not wanting to pay them more. Overall I think that the rise in minimum wage is a great idea. It can help for workers to make more in their yearly salary, but also workers can feel like their actually working for a little something more money. What do you think?
1 comment:
The minimum wage issue will be a big part of the next section of the course. After we have developed the basic supply and demand model, we'll be in a better position to critically evaluate the impact of a higher minimum wage.
One of my favorite sayings in economics is TANSTAAFL (There Ain't No Such Thing As A Free Lunch). Essentially, this means that every choice involves an opportunity cost. Raising the minimum wage is not a free lunch. Someone will have to "pay" for it. For example, workers may pay for the higher wage through reduced hours of work or lower fringe benefits. Would you be willing to accept the higher wage if it means lower fringe benefits? Consumers may pay for the higher minimum wages in the form of higher prices for the things such workers produce. Shareholders may pay for the higher minimum wage in the form of reduced stock prices.
Let's hold off on judging the minimum wage until the next section of the course.
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