Indledning
Hard work doesn’t always pay off. When working full time, living paycheck to paycheck on the minimum wage of 7.25$ an hour.
This problem has created a controversial debate in the US, as some citizens want to increase the minimum wage, while others don’t.
The question is: Should US increase the minimum wages, or should they perceive freedom by keeping the current minimum wage.
Optimer dit sprog - Læs vores guide og scor topkarakter
Uddrag
To act upon, small businesses have to cut expenses, boost revenue, or both. According to Adam Uzialko, Business.com, this will” In the short term, minimum wage increases could lead to measures like price hikes, negotiations with suppliers or even a need for a working capital loan.
In extreme cases, small businesses might need to institute furloughs or even layoffs.
Because of this increase, the Minimum wage will in the long run raise the unemployment rate and raise the price level. Thus has the opposite effect on society and creates a bigger income gap.
However, according to Adam Uzialko, Business.com ,(line 64-68), the opposite effect could occur. Instead, will the wage hike result in more employment while reducing the income inequality.”
In one study, economists David 65 Card and Alan B. Krueger examined a 1992 minimum wage hike in New Jersey and compared how the restaurant industry (often considered to be the most impacted by minimum wage increases) fared against similar establishments in neighboring Pennsylvania.
Skriv et svar