There has been arguments over what minimum wage should be and it is most prevalent in the fast food industry. McDonald’s employees were on strike in order for their wages to be increased to 15 dollars an hour. Therefore, we are going to discuss if the wages should be increased, possible affects if the wages are increased and how the recession has been a part of the payment problems.
The youtube video gets you up to date on what is going on.
If the wages were increased, that would be beneficial for MOST employees, but I would rather have many people working for an okay salary than having some people work for really good wages. I would like to say that raising the minimum wage would help all of the workers, but I just can’t do that because of economic principles. If the price of production, aka the employees, increases, the aggregate supply will decrease and that results in an increase in prices and less quantity of product being produced. (Look at the graph below for a reference.) So, if McDonald’s increases their wages they will either have to significantly decrease their profit margin and that would discourage them to open up more stores because of the cost and then less people will get jobs or they will increase the prices and people will not buy as many hamburgers and they might have to lay-off more employees. I would much rather prefer that everyone can buy a couple hamburgers for 2 dollars and many people having a job instead people buying one burger for 2 dollars and a few people with a job. Then I like what the guy at the end of the youtube video said, and that was that the people arguing for higher wages should be happy that they have a job in this volatile economy with a 14% real unemployment rate. So the lesson is, be happy with what you have and work hard to make more of it.
http://econjournals.wordpress.com/2013/03/page/2/ Thank you for the graph!
Another youtube video that gets you thinking:
That youtube clip makes a good point that employers hirer people and pay them high wages because of the experience and knowledge that they have. Then there are not a lot of younger people getting jobs because many of us don’t have a lot of experience and I hate to say it but we may not be worth the cost to the employer. The recession has decreased the number of jobs available so employers are really narrowing down their search for employees and that means that they are going to hire the older and more experienced workers. That explains why the average age of workers at McDonald’s is 29.5 years old.
Now that all of that is covered, let’s see if we can come up with some answers to these questions.
- Why are people rarely satisfied with what they have?
- What can be done in order to have college students and other young people be more likely to get a job?