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It sounds simple raise the minimum wage, reward hard work, and strike a blow against the society's inequalities. It's an emotional argument that blurs out the truth and make's people forget one important economic lesson: There's no such thing as a free lunch. The IWC and the legislature have not agreed since that time that any additional increase is justified because of California's recession and the downward turn in the business climate.
The increase has been less than the rate of inflation during this period. The vast majority of the 22, members of the American Economic Association agree that increasing the minimum wage will increase unemployment among young, unskilled workers. And, it will hit just when the state is recovering from a long recession.
Most of these workers would be directly affected by this increase. Industries employing significant numbers of these workers include retail stores, child care facilities, restaurants, and fast food franchise. Much of the fiscal impacts of this measure would be related to its various effects on the economy, including changes in employment, prices and profits.
For example, most employees earning less than the proposed minimum wage would earn more. They would also spend more on goods and services, thereby generating certain increases in economic activities.
At the same time, however, employers would face higher wage costs, which they would either absorb in the form of lower profits or attempt to offset through a variety of means. For instance, they may attempt to shift or pass along the cost of higher wages to the consumer by rasing prices of the goods and services they sell.
Alternatively, some employers may offset the cost of the increase in wages by automating, hiring fewer employees, reducing the hours, or limiting fringe benefits. Some businesses that are not able to shift the effects of the higher minimum wage may reduce economic activity in California.
This would most likely occur in industries that have a large share of expenses for low-wage workers or that are subject to competition from other states and other countries.
In my view, an increase in the minimum wage would result in some decline in employment and business activity in California relative to what would otherwise have occurred. This increase would have varying effect on state and local revenues.
For instance, a reduction in business activity, employment, and income in California would result in lower income tax revenues. These declines could be offset, however, by increased spending on goods subject to the sales tax.
Higher sales tax would occur if business raised prices of taxed goods in response to the increase in the minimum wage, and this increase is not offset by reducing quantities of goods sold. Sales tax could also increase if those receiving the higher minimum wage spent a relatively high portion of their new earnings on goods subject to the sales tax.
How the minimum wage should be changed, in California minimum wages increases have usually occurred in one of two ways. The first is a change in the federal minimum wage, which results in an increase in California minimum wage to the new higher federal level.
The second is a state administrative process.
Under this process, the California Industrial Welfare Commission can, by a majority vote of its members, issue wage orders to raise the state minimum wage for workers in any occupation, trade, or industry.
The commission considers information from business, labor, and the public through a series of hearings. This measure would require the Industrial Welfare Commission to issue minimum wage orders consistent with the proposed minimum wage increase. This increase in wages was to steep of an increase nobody is really benefiting from this, although it makes the employees earning the higher wage feel better.
I think a slow increase over time would have been better for the employee because you would actually see your increase of money staying in your pocket. Right now with your wages rising, your cost of living is also rising so in actuality you are spending more.
The times long ago were not focused around a green piece of paper that we have labeled as money.
This piece of paper got an amount and then fMinimum Wage Essay. Bisht;Ashish; Minimum wage bill defeated in Parliament Introduction: The demand to raise New Zealand’s minimum wage has decline. We live in a society where government has to make balance between employers and employees.
Workers want better paying job and at the same time employers want to control labour . For example, in the UK the minimum wage has increased from £ in to £; however, during this period unemployment has fallen. There are various . In addition to the 50% who work on the minimum wage in the food service industry, another 30% who work on the minimum wage work for retail stores such as Macy's, JCPenny, Walmart, Target, etc who also make millions a year and could more then afford to .
The Case for Minimum Wage in Europe Essay Sample. The Case for Minimum Wage in Italy The increased competition in the international market for cheap labour is putting Italian labour force at a disadvantage, reason being that their country does not have a minimum wage to guarantee descent remuneration.
Minimum wage is a difficult number to decide on because it affects different income earning citizens in different ways. According to Principles of Microeconomics, by N.
Gregory Mankiw, minimum wage is a law that establishes the lowest price for labor that and employer may pay (Mankiw b). The Fair Minimum Wage Act, introduced by the Democrats, will increase the minimum wage -- for the first time since -- in three steps, from $ before the most recent increase, to $ an.