Impact of Raising Minimum Wage
Impact of Raising Minimum Wage
The article Wages Q&A: What Do McDonald’s, Wal-Mart and Target Pay Rise Mean for the Economy? by Eric Morath is an informative outlook on the potential impacts of raising the minimum wages in revered organizations in America towards the economy and safety of jobs in the industry. The article is a piece of journalism enabled through opinioned and studied mechanisms within the market dynamics and economical significance. The author balances the effects through analysis on potential follow up by the federal government and uses empirical denotations to depict the outcome on consumers, businesses and the workers. The article presents analytical interview by the author on key sectors in hospitality and historical patterns witnessed in spending power. Increased minimum wages as per Wages Q&A: What Do McDonald’s, Wal-Mart and Target Pay Rise Mean for the Economy? by Eric Morath shows n predicts a strengthened economy.
The approach delivered by the author does not use a single market analysis as opposed to holistic essence of the hospitality industry. From the chart delivered, the impact usurped by flat wages has been of great importance especially when uneven recovery was noted (Morath 1). Inflation accounting required consistent growth of wages, which has not been the case. In addition, flat wages have seen the number of gains in jobs be enabled in the lower-paying sectors. The impact will require more spending from the part of the consumers through increased prices, but the outlook in the economy provides for positive changes. The industry is on a growth curve and therefore, the shrinking fear cannot be realized.
Factors that might mitigate negative employment effects are detailed in the article’s listing of categorical industrial figures and charts. It shows that the hospitality industry has outclassed the others in spending and wage numbers in overall periods of recoding. Such figures determine that the average American is willing to spend more in the sector while also increasing savings to cushion for any allayed negatives in the process. Case, Fair and Oster (599) note that with increased positive outlook on the GDP for the country, the disposable income savings will continue to increase while the economy continues to strengthen after the recovery process. The dissipating inflation recorded within the last six years, the levels fell due to energy costs. However, on the volatility of food and energy aside, the stabilizing effect secures the growth of wages.
The author’s view on the markets do not point at presumptions on the competitive basis of the labor markets, but rather the possibility of distortions stabilized by the expected growth. Annual consumer prices have strengthened over time while disparity in gender wages has reduced tremendously. Accelerated forms of wage growth were recorded as compared to private sector through the economic expansion. It signifies the diminishing slack recorded at the lower end of the labor markets. Universal raises of the wages in almost all the states give cushion against fear of inflation as the economy increases while fighting off the demands in sustainability.
Increased minimum wages as per Wages Q&A: What Do McDonald’s, Wal-Mart and Target Pay Rise Mean for the Economy? by Eric Morath shows n predicts a strengthened economy. with increased wages, job security and overall economic growth provides for stability in the industry. The avenues leveled for the performance depict increased spending by consumers, while there is growth in saving and business security. Despite the disruptions that might face the stability through inflation and annual consumer prices with volatile food and energy, the author provides assurance of safety.
Case, Karl E, Ray C. Fair, and Sharon M. Oster. Principles of Economics. Upper Saddle River, NJ: Prentice Hall, 2009. Print.
Morath, Eric. “Wages Q&A: What Do McDonald’s, Wal-Mart, and Target Pay Rise Mean for the Economy?” The Wall Street Journal, 2 April 2015. Print.
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