Dayton Arntz
What are wages? Whenever someone like you or me gets employed at a job you sort of make a agreement with each other. The agreement is that you are sacrificing time out of your life to work for your “boss” and in exchange he will pay you money for your time working. Depending on how many hours you work or how advanced your job may be how much you make an hour will vary. With a recent report from the New York Times talking about if wages are increasing or decreasing or getting better or getting worse. We don’t know.
In January of 2018 there had been reports of the average hourly wage of increasing by 2.9%. That’s great that means more people are making a higher hourly wage as a whole since the average doesn’t specify a particular place, it talks about the entire working class. When I saw this and compared back to when the Great Depression started to end and the Great Recession came along I was very happy, because what I was expecting was too have more jobs being able to pay their workers more and therefore more people living a healthy stable lifestyle. But then the reports for February came out and there was only a 2.6% growth. I mean that is still good but I was hoping for a bigger number and now are we expecting it to go down?
Well economists don’t know if the wage is going to go up or down because there are so many different variables to take into consideration and measuring by statistics may not help. There are many reasons why companies could raise their minimum wage at their job which could shift this graph like how Amazon announced to raise their minimum wage to 15$ an hour. The reason why they did was to benefit their 250,000 employees. That change right their will shift the graph to go up but that’s not in result to the economy doing really well and how there is more money in the economy. There is a claim that when president Trump was elected into office people saw a great jump in the economy which could explain the wage growth but we aren’t for sure about that due to numerous variables.
Now we got to talk about if raising these wages would benefit everyone or ultimately hurt even more people than help. Let’s say we ultimately raised the minimum wage to 15$ an hour everywhere. There will be more money in the economy which will help Americans buy more and the business’s will be profiting from the higher demand. People who can only work at minimum wage jobs will be able to live better off and this country’s GDP per capita will increase as well. Now the unfortunate stuff that will happen if we do raise the national minimum wage to 15$ per hour. With numerous companies being forced to pay their workers more they can’t do that so what happens is that there going to have people being laid off just to have the business survive. Also companies won’t hire as many people because they know they will have to pay them more. Ultimately wages is a very odd topic but if we look at how well the economy is doing then that will relate to how high or low the wages are doing but I advise you that you go get a college education and find a job that is going to need you so that if the wage drops your job is safe and you can still earn a good income.
Bibliography
Casselman, Ben. “Are Wage Gains Picking Up? Stalling? Questionable Data Makes It Hard to Say.” The New York Times, The New York Times, 12 Mar. 2018, www.nytimes.com/2018/03/12/business/economy/wage-data.html?
rref=collection%2Ftimestopic%2FEconomics&action=click&contentCollection=timestopics®ion=stream&module=stream_unit&version=latest&contentPlacement=16&pgtype=collection.
Matsakis, Louise. “Why Amazon Really Raised Its Minimum Wage to $15.” Wired, Conde Nast, 13 Nov. 2018, www.wired.com/story/why-amazon-really-raised-minimum-wage/.
“Raising the Minimum Wage - Good or Bad?” EBS Consulting, 30 Mar. 2017, ebs-consulting.com/raising-the-minimum-wage-good-or-bad/.
With the wages and increasing minimum wage, increasing would ultimately destroy the economy. The money for workers to be paid comes from their boss, if that gets increased then workers will be fired with no job the homeless may increase and the GDP may fall. Inflation will occur and only bad stuff will happen to the economy. We must keep the minimum wage where it is to keep the economy stable and figure out a different way to help the poor.
ReplyDeleteIt's interesting on the graph how steep increases in compensation per hour correspond with sharp decreases in median weekly earnings. One reason for this trend may be the income effect. As wages increase, individuals are able to work fewer hours and maintain constants earnings. In this case, it appears that workers chose more hours of leisure over work. Therefore, the income effect won out over the substitution effect which would have caused workers to work longer hours due to increased pay.
ReplyDeleteRaising the minimum wage to $15 everywhere most likely wouldn’t benefit the economy as much as you think it would. The sudden increase in wages could likely cause inflation, and some companies might not be able to keep up with the increase. This would lead to laying off workers or potentially shutting down the business. Raising the minimum wage in moderation would lead to a more successful economy. Companies will have time to adapt to the price changes and it won’t seem as drastic.
ReplyDeletewhen you increase the good is there but there is also the bad that it right there with it, and I mean it like this so if the minimum wage was increased to $15 dollars yes people would get more money and also get laid off maybe but that's what you said. Now also another bad thing is prices would go up with it so a pack a gum that costs $2.50 now would cast $5 or maybe even higher. or maybe they would just raise prices enough so it wouldn't be before.
ReplyDeleteI will agree with your topic that many people including our age structure needs money to start paying for your car, college, school supplies, etc. I have a job as well and when I first started, I was pretty shocked that getting paid minimum wage was very low! $7.50 an hour! Yes everyone would like to have more money and get paid a lot more so people can pay off their bills, taxes, health insurance, etc. But there’s a limit of how much you will get paid when you have a job your boss isn’t just going to give you $100 after every time you finish your shift you get paid by the hour and get paid every other week.
ReplyDeleteEven if minimum wage were to go up, I highly doubt it would be double what it is now. That ultimately wouldn’t be good for the economy. People would start losing their jobs because employers don’t want to have to pay a lot of people that much money. Yes, we as the workers would benefit in having more money, but if we’re not the best of the best, we could lose our job and it would be harder to find a new one.
ReplyDeleteRaising the minimum wage would effect the economy in a negative way because this means there will be less money for the governments to supply military, fire protection, and other public goods. If we set the minimum wage higher there is just less money for our economy to function. The workers may benefit from this but as a society as a whole it would not be good.If these companies are paying a higher minimum wage then ultimately they will not have enough money to supply all of the workers with a job so doing this will also make more people not have jobs.
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