Reasons Raising the Minimum Wage Can Hurt the Economy

According to the left, raising the minimum wage and providing a fair wage is the best way to eliminate poverty and address income inequality. But doing so has consequences far beyond an employee simply getting a raise on their paycheck one day and thats the end of it. Weve already seen the consequences of the poorly thought out, expensive, and lousily executed Obamacare laws and drastically raising the minimum wage the way liberals are proposing could lead to equally unfortunate outcomes for the very people the law is supposed to help. 1. Attempting to artificially raise incomes through a minimum wage increase is more about electoral politics than it is about actually helping people achieve the American Dream. Indeed, when polled people regularly support such a raise, because who would oppose people making more money? But economics realities are more than what sounds nice, and everyone would be better off by supporting true pro-growth policies that open up opportunities for everyone willing to work for the American Dream, rather than expect it be handed to them. Artificial wage increases can set the economy back while not even finding true relief for those the increase are intended to help. 2. If the goal is to lift people out of poverty, this will not do that. Figure that a huge chunk of minimum wage jobs are part-time, and the number of part-time jobs as a percentage of the workforce are only increasing already because of Obamacare. How many people would rather make $8.50 an hour and work 40 hours a week with a company-sponsored insurance plan over making $10 an hour with hours cut back to 28 per week and left to shop at an Obamacare exchange for excessive and costly insurance they might not need? (And even if the plans are cheap because of subsidies, the Obamacare deductibles are probably out of reach for these people anyway.) 3. Do this math equation: Obamacare Higher Wages for Unskilled Labor - Cost to Replace Said Worker with a Machine Adios jobs. The high costs of Obamacare plus increased wages (which also means higher payroll taxes paid by the employer) makes it more attractive to replace low-skilled jobs with machines. Self-service food-ordering machines are already being implemented in many restaurants nationwide. 4. Minimum wage jobs are typically low-skill or entry level jobs. If the costs to fill low-skill positions become to high, consolidation can occur and businesses are likely to replace two or three employees with one employee who excels and can do multiple jobs quicker. In other words, it would probably be more attractive to hire an ambitious and talented self-starter at $18 an hour to replace 2-3 less ambitious or inefficient employees making $10 an hour each. A business could even pay the one employee some solid over-time and still be ahead in the end. The more an employee is paid, the more is expected of them. Making jobs artificially more expensive also makes employees with less skill or who are new to the workforce more expendable. And these are the people the new laws are intended to help. 5. Believe it or not, the money needed to pay these employees has to come from somewhere. Retailers - who probably employ the greatest percentage or minimum wage earners - would simply be forced to raise the price of goods and services. So even if someone makes an extra $28 bucks a week, how much more are the same workers going to have to pay for food, gas, or clothing to make up for increased labor costs? 6. Different states have different economies and the cost of living in New York is different than the cost of living in Texas. It simply does not make sense to have a one-size plan for completely different economies. This is why, of course, conservatives believe in federalism and believe that Alabamans have the right to live how they want to and Vermonters have the right to live how they want to. Nationally centralized policies rarely work when their are so many factors in play. 7. Many small businesses already struggle to survive with the current burdensome regulations offered up by the federal government. Many rely on part-time help from high-schoolers to scoop ice cream, work the car wash, or deliver flowers. Small businesses are already at a disadvantage as they typically have higher overhead costs and must make more margin on products sold just to survive. This would only make it more difficult for them to succeed. 8. The minimum wage is seemingly raised every few years, and its never enough in the long run. After all, a minimum wage at $10 is still a minimum wage. And if higher labor costs cause the price of everything to go up anyway, the power of the dollar is merely weakened and no progress has been made. Which brings us back to our first point: The American economy needs true economic growth that enables people to succeed, not a policy based on a bumper-sticker slogan that offers a temporary feel-good fix that will be just as worthless and new minimum wage increase demands roll around. 9. Higher paid employees will want raises equal to those of the minimum wage employees. If people at the bottom of the pay chain get a 20% raise, everyone who makes more than that will also expect - and perhaps rightly so - a 20% raise as well. Imagine having worked in a job for a few years and earned increases only to have some guy hired at the same rate on day one because the government says so. Now businesses either pay all of their employees more or enjoy a disgruntled workforce. In the end, minimum wage increases go beyond increasing labor costs for just the targeted group. 10. This is where the harsh reality sets in: Minimum wage jobs are not intended to enable people to raise a family of five on. They simply arent. Yes, there are circumstances where people are forced to take jobs at minimum wage, perhaps more now than ever. But minimum wage jobs are designed for entry-level workers, kids in high school (who Id assume shouldnt have the need for $20K/yr jobs), or those looking to add a little extra money through a second job. The point is to move up from there into intermediate jobs, and with enough hard work a very well-paying job. Thats pretty much the point of a minimum wage job, and the point is not to support families. Its nice to say that a full week of work means everyone who does so gets a house, SUV, and an iPhone (and how many struggling minimum wage workers have the last one?), but the reality is that is not what those jobs are intended for. The problem with the lefts over-simplified solution to the economy is that the more expensive these jo bs get, the more likely those that need them will be able to get them. And how does that help anyone?

Not Without Laughter Study Guide - 9912 Words

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The books he reads expand his mind and lead him to ask big questions about religion, morality and race relations. Eventually Annjee saves up enough money to send for Sandy; Jimboy has gone to Europe in World War I and Annjee has found Sandy a job as a bell-boy. Sandy saves up money to continue his education, but Annjee wants him to keep his job as a bell-boy and make a living. About that time, Harriett has made her way out of darker places and has utilized her natural beauty and singing talent to become a regional blues singing star. When Sandy and Annjee go to see her in Chicago, Harriett berates Annjee for discouraging Sandys education and reminds her of Aunt Hagers dreams for him. When Annjee relents, Harriett commits to funding Sandys education. Chapters 1-3, Storm, Conversation, Jimboys Letter Summary and Analysis Storm introduces Aunt Hager and her grandson Sandy preparing for a cyclone that is hitting their neighborhood. 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Should Big Tobacco Be Sued for Health Care Bills An Analysis

Should big tobacco be sued for health bill? An analysis A recent ruling by the Supreme Court of Canada on the subject of smoking is the main topic of my articles. The landmark ruling made on September 30th gives the province of British Columbia ammunition against big tobacco companies. The decision allows British Columbia to sue tobacco companies for damages related to smoking-related health care costs dating back 50 years (Bell Globalmedia Inc [BGMI], 2005). Many expect the ruling in BC will act as a model for other provinces to follow suit. The resulting lawsuits could potentially cost Canadian tobacco companies like Benson Hedges, Imperial Tobacco, and Rothmans hundreds of billions of dollars. Similar†¦show more content†¦Tobacco companies denied the health effects of nicotine, knowing fully that the substance was highly addictive. The industry also used misleading advertising that never showed the negative effects of their products. They targeted children with their misleading marketing campaigns causing generations o f smokers. As a result of these actions, the public is suffering the consequences. The government of Canada spends 4 billion dollars in direct health care costs every year because of tobacco (BGMI, 2005). The settlements resulting from lawsuits against tobacco companies will regain some of those costs and take off some strain on health care system due to the treatment tobacco related diseases. The settlements can also help treat current patients with emphysema, cancer and other smoking-related diseases. Although the negative roles of smoking are very apparent, the tobacco industry plays an important social role in the world. Many teens use cigarettes as a means for bonding with their peers. Adults also use cigarettes as a form of ice breaker when socializing with others. The tobacco industry also provides a great source of revenue for the economy. 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Employees be Primarily Motivated by Money

Question: Should Employees be Primarily Motivated by Money? Answer: Introduction Employee motivation defines the energy level, creativity and commitment of the workforce. In this era of business modernization, organizations are considering employee relationship for gaining supremacy in the competitive market. It is the sole responsibility of management to implement effective motivational tools for empowering employee performance. According to Lazaroiu (2015), there are different motivational tools such as recognition, succession plan, flexibility and remuneration increment. In this regards, Chauhan, Goel and Arora (2014) has argued that selection of the motivational tool completely depends on the organizational requirements and culture as well. It is highly necessary to implement an effective motivational tool for empowering employees performance level, which helps an organization in handling a critical situation. Most of the organizations try to satisfy their employees through financial benefits rather than other benefits. This essay will critically evaluate that whether the financial benefit is an essential motivational tool or the other motivational tools are also need to take into account for strengthening workforce performance. Discussion According to Solomon et al. (2012), financial benefit is one of the major motivational tools, which helps an organization to motivate the workforce. On the other hand, Manzoor (2012) has argued that financial benefit only helps an individual to fulfill the primary needs and requirements. As per the Maslow hierarchy of needs, an individual should fulfill the basic needs for reaching to the self-actualization level (Cherian and Jacob 2013). However, the other phase of Maslow hierarchy of needs suggest that other factors such as belongings, social needs and esteem are also important for reaching to the ultimate level of motivation (Qayyum 2012). Therefore, it can be said that money is important for satisfying needs of an individual; however, the other motivational tools are also important for leading the workforce towards success. As stated by Acha, Hargiss and Howard (2013), there is a huge difference between inspiration and motivation. If an employee is inspired, then he or she will b e able to generate new ideas. In the other hand, Bogoviz, Vukovich and Stroiteleva (2013) mentioned that if an employee is motivated, then he or she would be able to implement that innovative idea. It defines that motivation is something that influence the workforce to give extra effort for getting successive outcome from their performance. Therefore, it is important to empower self-esteem of the workforce along with providing better remuneration. According to Ude and Coker (2012), an organization should have proper pay structure for satisfying the workforce. On the other hand, Mishra and Sinha (2014) has opposed that along with efficient pay structure, it is important to motivate the workforce with effective career opportunity. It indicates that organizations need to gain the trust of the workforce by ensuring that employees future growth is taken into consideration by the management. As mentioned by Lazaroiu (2015), recognition is a motivational tool, which helps the organization to motivate every individual employee. The term recognition defines how the management of an organization is appreciating an employee for achieving a set of objective. It is highly important to appreciate the workforce after achieving a particular objective for empowering motivational aspects. However, Solomon et al. (2012) has additionally mentioned that only appreciation is not sufficient for continues improvement of the workforce. An organization should consider extra financial benefits along with recognition in order to influence the workforce to maintain efficiency. For example, CEO of Facebook, Mark Zuckerberg appreciates the workforce for achieving short-term organizational objectives for motivating the workforce (Manzoor 2012). On the other hand, Bogoviz, Vukovich and Stroiteleva (2013) stated that adopting only financial benefit could harm self-esteem of an employee, which can r educe performance quality severely. However, Mishra and Sinha (2014) has stated that providing financial benefit empowers motivation of the workforce in short-term basis. It means a medium level organization can provide only financial benefits to the workforce for increasing business performance for short time. On the other hand, Manzoor (2012) stated that a large organization should consider long-term relationship with the workforce and therefore, a large organization should implement recognition as the primary motivation tool rather than financial benefits. As per the viewpoint of Qayyum (2012), apart from recognition and financial benefits, a succession plan is another effective motivational tool, which can empower performance quality of the workforce. In this strategy, an organization considers future growth of the employees along with organizational benefits. In this manner, an organization engages an effective training program for empowering knowledge of the workforce. According to Cherian and Jacob (2013), this strategy not only helps the organizations to provide adequate knowledge to the workforce but also helps the workforce to improve their efficiency. For example, Apple is considering continuous knowledge growth of the workforce for motivating the employees. However, Acha, Hargiss and Howard (2013) have argued that an effective successive plan involves a monetary investment, which increases the overall organizational cost. In other words, this motivational tool is a financial benefit for the workforce; because employees are get ting the professional training at free of cost. On the other hand, Ude and Coker (2012) stated that if an organization is only relying on financial benefits rather than successive plan, then it will be difficult for the company to improve performance quality of the workforce. It defines that providing an effective career opportunity is more beneficial than financial benefits. In this regards, Manzoor (2012) has stated that in this competitive era of the business environment, every organization is willing to retain their employees and therefore, every company is offering an effective remuneration structure. Considering succession plan along with financial benefit can help an organization in reducing the rate of employee turnover in an efficient manner. However, Solomon et al. (2012) has argued that providing financial benefits along with succession plan will increase company's cost remarkably. Therefore, an organization needs to choose between these two motivational tools for ensurin g low cost and high profitability. On the other hand, Cherian and Jacob (2013) stated that, an effective succession plan ensure the employees that management of the organization is looking forward to the employees. Therefore, motivating the employees will be easy for the organization by implementing succession plan rather than monitory benefits. According to Qayyum (2012), workforce flexibility is another motivational tool, which allows the workforce to be flexible during performing for certain objectives. It helps the workforce in achieving the organizational objectives as per their convenience. In other words, flexibility increases self-esteem of the employees in an effective manner. As mentioned by Bogoviz, Vukovich and Stroiteleva (2013), a flexible working culture improves responsibility of the employees and therefore, employees can perform in critical situation for avoiding negative outcome. The most relevant example of flexible working culture is Google working atmosphere (Lazaroiu 2015). Google is efficiently managing the workforce by implementing a flexible working culture and therefore, the workforce is highly satisfied and motivated as well. On the other hand, Manzoor (2012), has opposed that this kind of working environment is only facilitates the experienced employees. Therefore, new employees can face difficult ies while working in such environment. In order to motivate the workforce, it is highly important to provide a maintained flexibility along with financial benefits. According to Qayyum (2012), a flexible working environment with high observation is the most effective motivational tool, which can empower performance quality and employee engagement of an organization. However, Ude and Coker (2012) have mentioned that apart from this motivational tool, an organization needs to provide extra financial benefits such as incentives and reward bonus. Conclusion This essay is emphasizing that most of the organization are relying on financial benefits for motivating the workforce. In this essay, arguments of various authors are indicating that there are various motivational tools apart from financial benefit. When it comes to the recognition, an organization needs to appreciate the workforce for achieving an objective. Along with that, the organization should also provide fringe benefits for fulfilling basic requirements of the workforce. On the other hand, an organization should consider future development of the workforce for building an emotional relationship with the employees. In this motivational tool, an organization will be able to increase employee motivation along with employee engagement. Apart from that, instead of financial benefits, a flexible working culture can be implemented as a motivational tool. This motivational tool helps an organization to allow the workforce in enhancing their self-esteem. On the other hand, many resea rchers have argued that this particular motivational tool can affect the organizational sustainability negatively. Reference list Acha, V., Hargiss, K.M. and Howard, C., 2013. The Relationship between Emotional Intelligence of a Leader and Employee Motivation to Job Performance.International Journal of Strategic Information Technology and Applications (IJSITA),4(4), pp.80-103 Bogoviz, A.V., Vukovich, G.G.E. and Stroiteleva, T.G.E., 2013. Motivation of staff in the corporate sector industry.World applied sciences journal,25(10), pp.1423-1428 Chauhan, A., Goel, M. and Arora, R.G., 2014. A review on factors influencing employee motivation.EXCEL International Journal of Multidisciplinary Management Studies,4(2), pp.128-143 Cherian, J. and Jacob, J., 2013. Impact of self efficacy on motivation and performance of employees.International Journal of Business and Management,8(14), p.80 Lazaroiu, G., 2015. Employee Motivation and Job Performance.Linguistic and Philosophical Investigations,14, p.97 Manzoor, Q.A., 2012. Impact of employees motivation on organizational effectiveness.Business management and strategy,3(1), p.1 Mishra, T. and Sinha, S., 2014. Employee motivation as a tool to implement internal marketing.International Journal of Commerce, Business and Management,3(5) Qayyum, A., 2012. An empirical analysis of employee motivation and the role of demographics: the banking industry of Pakistan.Global Business and Management Research,4(1), p.1 Solomon, O., Hashim, N.H., Mehdi, Z.B. and Ajagbe, A.M., 2012. Employee motivation and organizational performance in multinational companies: A study of Cadbury Nigeria Plc.IRACST-International Journal of Research in Management Technology (IJRMT),2(3), pp.303-312 Ude, U. and Coker, M.A., 2012. Incentive scheme, employee motivation and productivity in organizations in Nigeria: Analytical Linkages.Journal of Business and Management,1(4), pp.32-39