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Strayer University Professor Dr. Angela Parham PAD 500 December 11, 2016 Raising minimum wage for federal contractors to $10.10 per hour. * Introduction Employment laws and regulationsHonest livingDepartments within the agencyEthical concerns Organizational ethics Federal contractors, one who works with the federal government to provide services, supplies, or other work. They are subjected to special employment laws and regulations. Right now minimum wage is only $7.25 per hour; families cannot make an honest lively with no $7.25 per hour. This is the reason why we have so many families living in poverty and on government assistance. So, why only raise minimum wage on federal contractors and not everyone who’s out to make an honestly living in today’s society. There are varieties of departments within this organization; but only the federal contractors are considered for this pay increase. Uniformed and civil service employers are to keep arm’s length relationship with contractor employees. There are many ethical concerns with raising minimum wage to $10.10 per hour for federal contractors only, but I will only explain a two and they are support and criticism. Analyzing the overall manner in which the Department of Defense and how raising minimum wage will impact their organizational ethics. * Raising Minimum Wage Minimum wage for federal contractors only Minimum wage will go from $7.25 per hour to $10.10 per hourMinimum wage should be $14.50 per hourRelief on government fundsPeople in poverty Minimum wage will only be for federal contracted workers. The wage will go form $7.25 per hour $15, 080 per year to $10.10 per hour $21,008 per year. The wage should go up to $14.50 per hour which is $30,160 per year this way people can live out of poverty. It will take $28,000 per year for someone not to live in poverty, so $14.50 per hour would put a lot of people above the poverty. Lesser people would need government assistance and if everyone was making this it could wipe government assistance out for the working and be able to help the people that really need it like the elders and veterans. * Policies SupportDomestic policy support minimum wage Establish funds for the governmentModifying policy for federal contractors Modifying policy for all workersComing out of poverty Policy generally confine the problems and issues within the country, this plays a part with the welfare of citizens of the country will be a big part of the domestic area. More taxes will be gain from workers once wages are increased their income will be to $21,008 per year instead of $15,080 per year. Raising minimum wage to $14.50 per hour would be a great accomplishment for the government. This would cut down on government assistance. A lot of government funding will be cut and then these funding would be good for education and nursing homes. Raising minimum wage to $14.50 per hour $30, 160 per year would benefit people by removing them out.
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ECON 0858 Issue Paper #1 2/27/18 Student Name (1) Position Statement Topic: Minimum Wage Laws (2) Minimum wage laws have been debated as a chief topic among legislators and economists alike, especially recently with Bernie Sander’s proclamation that it should be set to $15/hour. A higher minimum wage can stifle the growth of small businesses, and affect millions by increasing unemployment for unskilled workers, while a lower minimum wage may contribute to increased poverty or a poor standard of living for some. Under President Trump’s new tax plan, decreased income tax rates for consumers allows them to spend more money, which in turn will help small businesses, who also reap the benefits of a reduced corporate tax and capital gains tax. Because these changes may spur a growth in economic activity going forward, the current federal minimum wage of $7.25/hour should not be increased nor decreased in order to properly assess the effects of Trump’s plan. Moreover, all 50 states should adhere to the minimum wage in order to properly assess its economic impact on the U.S. as a whole. (3) Economic Arguments Against My Position: a. An increased minimum wage allows unskilled workers to contribute more to the economy. i. If workers earning the current minimum wage can take home more money, they are inclined to spend that money and contribute to small businesses and help boost economic activity. ii. Since 2012, the Fight for $15 movement helped low-wage workers gain $61.5 billion in annual raises through state and local minimum wage increases (National Employment, 2016). b. An elimination of the minimum wage will spur economic growth and create new jobs. i. A minimum wage must be set above the equilibrium price of labor in order to take effect, and its effects are seen through the U.S.’s unemployment rates. ii. In 2015, unemployment averaged 5.26%, implying that those who were unemployed could have been employed in unskilled jobs if firms could afford to hire them (Bureau, 2016). 1. Lost gains from labor trade create a need for the unemployed to enroll in government welfare programs, with 6.2 million Americans receiving $32 billion in unemployment compensation in 2016 (United States, 2018). 2. Low-wage workers receive retarded wage growth when there is a small increase in the minimum wage, compared to if there was no increase (Lopresti, 2015). iii. Companies that outsource production will bring manufacturing back to the U.S., creating jobs and utilizing land more efficiently. 1. Foreign-owned firms in Mexico and Venezuela pay workers more than their domestically-owned counterparts, which suggests that those firms (including those owned by U.S. entrepreneurs) that outsource pay foreign workers below the U.S. minimum wage but above the domestic minimum wage, if there is one (Aitken, 1995). 2. If there was no minimum wage, American companies would be incentivized.
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The maximum minimum National Review, July 6, 2015 Every political season, Democrats argue for higher minimum wages. Republicans respond by citing all of the evidence that higher minimum wages are harmful. Democratic voters get charged up and swing voters conclude that Republicans are heartless. It is the gift that keeps on giving for Democrats, but the curse that keeps on afflicting those below the poverty line who lose their jobs because of it. Though Hillary Clinton has made it clear that she is going to play this game, much of the action is coming from around the country, where America's progressive mayors have taken this form of government price-setting to new heights. In Los Angeles, Mayor Eric Garcetti recently signed legislation that would raise the minimum wage in the city to $15 by 2020. And this move in Los Angeles comes on the heels of Seattle's and San Francisco's adoption of the same policy. The evidence is clear about whether raising the minimum wage is an effective way to help poor people: It is not. As Richard V Burkhauser and T. Aldrich Finegan note in the Journal of Policy Analysis and Management, those living in poverty get such a vanishingly low fraction of the benefits of a minimum-wage increase that "it is not clear that increases in the minimum wage make good policy even if no jobs are lost as a result." As we prepare for the umpteenth political season pitting Democratic populism against a preponderance of economic evidence, let us pause and pursue the deep and enduring wisdom obtainable only through abstraction. The nearby chart takes the argument of minimum-wage proponents to its logical extreme. Suppose we grant that corporations are evil. Suppose we also grant that the only way we can improve the welfare of the poor is to redistribute by taking all of the money from the evil corporations and giving it to the working masses. This chart transports us to this redistributive nirvana, where the government has decided to seize all of the corporate profits in the land and give them to workers. Assume, contrary to sound economic thinking and common sense, that companies continue to operate exactly as they do today, suffering no negative effects from these confiscatory taxes. How large an increase in wages can this progressive utopia finance? To answer this question, we gathered data on after-tax corporate profits from the Bureau of Economic Analysis. We then gathered data on average hours worked per week per nonfarm employee from the Bureau of Labor Statistics and transformed these weekly data into data on the aggregate number of yearly hours worked by all nonfarm employees. Finally, we divided quarterly corporate profits by the aggregate number of hours worked by nonfarm employees over the same period, labeling this value the "expropriation subsidy" on the chart. To get an idea of how much of a perhour wage increase this policy could create, simply add the values of the two lines at a point in time. As the c ...
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Robert Pollin is a distinguished professor of economics and co-director of the Political Economy Research Institute at the University of Massachusetts, Amherst. Jeannette Wicks-Lim is an assistant research professor in the Political Economy Research Institute at the University of Massachusetts, Amherst. 716 ©2016, Journal of Economic Issues / Association for Evolutionary Economics JOURNAL OF ECONOMIC ISSUES Vol. L No. 3 September 2016 DOI 10.1080/00213624.2016.1210382 A $15 U.S. Minimum Wage: How the Fast-Food Industry Could Adjust Without Shedding Jobs Robert Pollin and Jeannette Wicks-Lim Abstract: We consider the extent to which U.S. fast-food businesses could adjust to an increase in the federal minimum wage from its current level of $7.25 an hour to $15 an hour without having to resort to reducing their workforce. We consider this issue through a set of simple illustrative exercises, whereby the US raises the federal minimum wage in two steps over four years, first to $10.50 within one year, then to $15 after three more years. We conclude that the fast-food industry could absorb the increase in its overall wage bill without resorting to cuts in their employment levels at any point over this four-year adjustment period. We find that the fast-food industry could fully absorb these wage bill increases through a combination of turnover reductions, trend increases in sales growth, and modest annual price increases over the four-year period. Working from the relevant existing literature, our results are based on a set of reasonable assumptions on fast- food turnover rates, the price elasticity of demand within the fast-food industry, and the industry’s underlying trend for sales growth. We also show that fast-food firms would not need to lower their average profit rate during this adjustment period. Keywords: fast food restaurants, low-wage workers, minimum wage JEL Classification Codes: J38, L81 Over the past few years, there has been a growing movement in the United States to substantially raise the federal minimum wage, which has been fixed at $7.25 an hour since 2009. One widely embraced goal within this movement is to raise the federal minimum to $15 an hour. This would constitute a 107-percent increase over the current $7.25 minimum. The question we address in this article is whether it is feasible to expect that the federal minimum wage could be raised to $15 an hour without causing major negative unintended consequences, specifically as it would affect the U.S. fast-food industry. The fast-food industry is an appropriate industry on which to focus this discussion. This is because, along with other sectors within the 717 A $15 U.S. Minimum Wage restaurant and food preparation sector, it employs fully 47 percent of all workers who earn at or below the federal minimum.1 The most straightforward possible negative consequence of a min ...
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Response one PADM-05 Mortgage interest rates are expected to rise considerably in 2018. If the economy grows too fast, The Federal Reserve will have to raise interest rates faster than expected. That could make borrowing money more expensive. If that happens, the likelihood of a recession increases. Not only would this drive up interest rates, but reduce private sector investments and diminish the country's creditworthiness. When inflation is too low, it can hurt the economy. Businesses get queasy about investing in people and equipment. If prices don't rise, wages don't either. But out-of-control inflation can also be harmful. As I see it, the current fiscal path is unsustainable. The Republican tax cuts could not come at a worse time, and I think it will hasten inflation and prematurely bring a recession. The effectiveness of mortgage interest rates rising is in my opinion, is nonexistent. It is like a dog chasing its own tail. With the passage of the tax reform bill, which essentially lowered the income tax rate, the Federal Reserve raised or is raising mortgage interest rates. So, this essentially takes the money that was saved by paying lower income tax and essentially puts it toward paying the cost associated with a higher mortgage. True, not everyone owns a home. But if you plan to buy one, this will make it considerably more expensive. The efficiency of raising mortgage interest rates is has both equal value and detriment. Keeping mortgage rates low allows more people to afford housing, stimulating the economy. By raising interest rates, the cost of owning a home is more and less people purchase homes, which is a key sign of inflation. Either way, I believe the policy on raising or lowering mortgage interest rates is ethical - the entire point is to maintain a healthy, balanced economy. The equity, or measure of fairness, depends largely on who stands to gain the most. In the case of our current economy, it's without question that that the restructuring of our tax code largely benefits the ultra wealthy. Had the entire country benefited equally from the tax reforms, then it would have been more equitable. The 2018 tax reform brought little political feasibility, as both political parties were at opposite ends of the restructure. Nonetheless, a compromise was reached. There was little social acceptability or public acceptance from this policy change, and many will end up paying considerably more tax because of it. I believe the administrative feasibility caught citizens off guard. I knew little to nothing of the tax reform until it actually happened. Whatever the case, the government reluctantly came together and enacted the policy. I do not know how technical feasibility plays into all of this, but I could only assume that the Federal Reserve had considerable reservations about the policy due to the fact that inflation will likely rise and mortgage interest rates will go up just because of it. Links: https://www.express.co.uk/ ...
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"Financial Impacts and Policy Considerations of a Minimum Wage Increase"
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Unveiling Falcon Invoice Discounting: Leading the Way as India's Premier Bill...
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