Is increase in minimum wage level represents economic growth ? Yes or No ?
Eleborate your views
thanx
ahsan saleem
Answer:
It, from my point of view, forces a false or temporary economic growth. The minimum wage increases--people have more money (even though minimum wage is to bring people up to a level of at or above poverty (if they receive minimum wage)...this in turn can effectively demand more wages from others who work at above minimum wage. More money and more buying, influences corporate profits...thus, effecting the ability to pay back loans. BUT, a corporation has to increase its prices on goods in order to adjust for the demand in increased wage. It shakes out, and we are at square one again...needing to increase the minimum wage again.
I believe it represents an economic decline. Increase in min. wage means the employer usually absorbs the increased cost of labor by passing it off to their customers by raising prices. Because of this many customers will choose to go without a tangible product because of the price increase thus leading to lower sales.
A resounding NO! An increase in minimum wages will absolutely negate any strides made to better the economy. Why? Well, first of all minimum wage earners are generally young folks just starting out of high school and learning what the real world is. Minimum wage was not meant to be for raising a family. An increase in the minimum wage just increases the costs of everything else. That $1 hamburger will now be $2. It is the domino effect. So, the economy suffers. People will get laid off from jobs, especailly with small business employers. Many small businesses will fold. To pay a higher minimum wage means you have to increase the prices of all products, and of course to keep prices down, jobs have to go, and an increase on the individual workload is expected. So, a job that was once done by 2 people will now need to be fulfilled by one, and done in the same amount of time to make a profit. Same productivity with less workforce. Charities would also suffer. So, in a nutshell it is a negative move economically.
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thanx
ahsan saleem
Answer:
It, from my point of view, forces a false or temporary economic growth. The minimum wage increases--people have more money (even though minimum wage is to bring people up to a level of at or above poverty (if they receive minimum wage)...this in turn can effectively demand more wages from others who work at above minimum wage. More money and more buying, influences corporate profits...thus, effecting the ability to pay back loans. BUT, a corporation has to increase its prices on goods in order to adjust for the demand in increased wage. It shakes out, and we are at square one again...needing to increase the minimum wage again.
I believe it represents an economic decline. Increase in min. wage means the employer usually absorbs the increased cost of labor by passing it off to their customers by raising prices. Because of this many customers will choose to go without a tangible product because of the price increase thus leading to lower sales.
A resounding NO! An increase in minimum wages will absolutely negate any strides made to better the economy. Why? Well, first of all minimum wage earners are generally young folks just starting out of high school and learning what the real world is. Minimum wage was not meant to be for raising a family. An increase in the minimum wage just increases the costs of everything else. That $1 hamburger will now be $2. It is the domino effect. So, the economy suffers. People will get laid off from jobs, especailly with small business employers. Many small businesses will fold. To pay a higher minimum wage means you have to increase the prices of all products, and of course to keep prices down, jobs have to go, and an increase on the individual workload is expected. So, a job that was once done by 2 people will now need to be fulfilled by one, and done in the same amount of time to make a profit. Same productivity with less workforce. Charities would also suffer. So, in a nutshell it is a negative move economically.
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