In order to counter this, government issues a minimum amount in which a business is allowed to pay their employees. The concept of minimum wage not only goes against everything it means to be a “free society”, but it is also completely illogical according to a vast majority of economists. If the government can control the real wages of millions of Americans by simply passing legislation that says so, then why stop at $9.04 per hour? Why not make it $15 per hour? Isn’t $100 per hour more compassionate to the average entry level, unskilled employee than $9.04 per hour?
Even though Wal-Mart saves families money, some families still go without or live very lean. How can one be expected to pay high premiums and then their share of a the doctor bills when making minimal wages? In an article by John Miller he states that, “Wal-Mart according to its own reports, pays an average of $9.68 an hour. That is 12.4% below the national average wage for retail workers, even after adjusting for geography”(12). Wal-Mart also does not allow overtime and has on occasion asked employees to work “off the clock” the employees comply as they don’t want to be fired, even though what is being done is not right.
The advantages from higher minimum wage can have a positive effect on the whole economy flows, while the disadvantages have some negative effects on employment rates. This essay is going to discuss about how higher minimum wage affect economy. Body The effect can be both negative and positive .The supporters assume that a rise minimum wage increases the level of living and reducing poverty and they also think that it is a good way to improve on labor’s right. On the contrary , the others think that it increases unemployment ,specially those workers who are unskilled or handicap and there is possibility of encouraging teenagers to drop out of the school to work. Further more , at this point every small business face trade-off , people running small businesses make decision for changes in strategic by comparing benefits and cost at the margin , as long as the marginal profit exceed the marginal cost .
Ungar argues that the government is to blame for their lack of financial support and not the educational institution. Given that Sanford Ungar is the president of a small liberal-arts college, his obvious bias shows when suggesting that small liberal arts colleges are the most rewarding since they have more of a community feel and are usually independent. But, liberal-arts colleges are better in the financial department because they continue to work to expand “need-based financial aid, the net cost of attending” (196). Courtney Umhoefer graduated party from University of Wisconsin and Ohio State University in 2011 with a degree in consumer financial services. The cost of this left her with a student loan balance of $86,000.
Dollar General in owned by Koldberg Kravis Roberts & Co. L.P (KKR) who own more than 79% of all shares in Dollar General. Some argue that part of the reason Dollar General has been so successful as of late is attributed to the economic crisis the United States experience during the second half of the 2000s. Economist believe that consumers will not shop at the Dollar General as much as the economy improves. In an effort to retain their existing customers and recruit new ones as the economy strengthens, Dollar General has begun to stock name brand items. Some analysts also believe that even when the economy improves, your average consumer will still look for ways to save money and continue to frequent the dollar discount stores.
Standpoint Theory will be discussed in order to explain why the reporters deliver their stories either objectively or subjectively. Finally, I will discuss whether or not the reports were effective in swaying my opinion on the subject. Background – President Obama’s Minimum Wage Increase The minimum wage debate is one in regards to President Obama’s plan of significantly raising the minimum wage in the United States. Supporters believe that raising the minimum wage will help workers cover their living expenses more easily, as well as bring people who work full time, out of poverty. Supporters argue that it is unfair that people can work hard, and put in a 40 hour work week, but still not make enough to support their families.
They elect or appoint a representative to bargain on their behalf so can have a much larger effect than each individual do it themselves. Neo- classical economic theory predicts that trade unions can improve working conditions but create unemployment in competitive labour markets. If labour markets are competitive, Better working conditions (including higher wages) means higher cost of production to firms, which can shift the demand curve to the right and with the new higher wage, there would be unemployment (Q3-Q2). In this case trade union successfully created benefit for some of its members. The hourly wages of union member saver aged £12.43 in 2006, 16.6% more than the earnings of non-members (£10.66 per hour).
Perhaps the most widely discussed criticism of Wal-Mart revolves around their high employee turnover rates and the causes of employee dissatisfaction. Namely, Wal-Mart has been accused of utilizing illegal hiring practices, discrimination, and unlivable wage rates. When questioned regarding whether or not Wal-Mart could increase its employees’ wages by $2 dollars, CEO Michael Duke claimed that it would be simply impossible. In monetary terms, we can look at the facts. Wal-Mart reported profits of nearly $15 billion in 2011.
Even though the prices will lower of time, companies will take advantage of the recession, knowing that consumers still require their goods, no matter if it falls outside their budget or not. It is the government and consumer’s responsibility to overcome the “stickiness” of the prices via certain stimulations. Essentially the government will directly, or indirectly, create opportunities for work for its unemployed citizens, therefore increasing consumer incomes to a point where they will match a compromise price level. This, in turn, will cause the demand for goods to go up which will decrease the price temporarily. The economy is not run by a single entity, which means that it is the individual or individuals that are driving our economy.
A extended variation in the cost of serving customer nationwide has been suspected by management. However its traditional costing methods were spreading costs over the entire customer base. The cost to complete an order for a customer was the same amount to complete an order. In fact, order with high quantity and profit were been treated the same a low profit margins. Super Bakery wan in the look of a system that would figure out with more certain cost of each order.