Minimum Wage: Costs and Benefits

Minimum Wage: Costs and Benefits INTRODUCTION AND DEFINITION OF MINIMUM WAGE The concept of minimum wage has been an age long economic debate that has broadened economists’ horizon into examining both its costs and benefits. The whole concept behind minimum wage basically deals with how the welfare of workers in a country, state or geographical region can best be improved upon. Since the premiere of the industrial revolution which dates back to the early 19th century in England, minimum wage has become an increasingly open and popular debate. However, this definition has faced stiff opposition from activist who clamor for a minimum wage bracket. From a broader perspective, some critics of the minimum wage concept has proposed that instead of increasing the wages that workers receive, the employers should be more concerned about improving their welfare. This has been narrowed down to include their place of abode, their feeding, health insurance and other benefits that are not included as part of employees’ income. The proponents of employees†™ welfare have a strong belief that it would help the workers as it basically deals with economic development and in addition to this, would prevent the occurrence of wage inflation. However, there is a definition of minimum wage which is universally acceptable. According to the Wikipedia encyclopedia, it is simply defined as the least number in hours in terms of payment that an employer may legally pay to employees’. In examining this definition, it simply tells us that it is based on a set of rules guiding employees’ compensation for services rendered. COST OF MINIMUM WAGE: ALGEBRAIC AND GRAPHICAL REPRESENTATION ALGEBRAIC REPRESENTATION The cost of minimum wage can be represented algebraically via the national income model. Hence, the cost is based on a macro-economic analysis given as: GDP= C+I+G+X-M. Where they are stated as follows; GDP= Gross domestic product, C= Consumption, I= Investment, G= Government expenditure, X= Export, M= Import. In analyzing each of the following components, the following are observations based solely on the cost of minimum wage. CONSUMPTION: With regards to the consumption of goods and services, opponents to an increase in minimum wage believes that it would lead to a drastic reduction in the consumption of manufactured goods as well as services as the cost of production is transferred to the consumers. This would lead to an increase in supply and a reduction in demand owing to cost. INVESTMENT: Conservatives are of the opinion that an increase in minimum wage would lead to a slowdown in investment. Employers would be unwilling to expand their business because of the heavy cost that would be paid to labor. This is because an increase in minimum wage would drive up the cost of labor which is very essential to production. Hence businesses would be reluctant to expand thereby leading to a reduction in investment in the long-run. GOVERNMENT EXPENDITURE: Conservatives are of the belief that an increase in minimum wage would drive up government expenditure. To buttress their point, it should be noted that an increase in minimum wage would drive up the cost of production which would lead to job cuts. Job cuts would prompt the government to act quickly by providing social security programs that would discourage people from engaging in social vices and illegal activities. This increases the government expenditure. EXPORTS: An increase in the minimum wage would result in a drastic reduction in exports of the subject nation. This occurs as a result of the fact that when there is an increase in the minimum wage, it leads to an increase in the cost of production and eventually an increase in the prices of goods to be exported. This would eventually lead to a reduction in the units of exported goods. IMPORTS: Increasing the minimum wage would lead to a sharp increase in the importation of goods. The foreign nation would want to make its own good cheaper in the subject nation where the increase has occurred. This may eventually lead to illegal trading activities such as dumping of goods or manufacturing of substandard goods. Hence foreign products would flock the domestic markets killing the domestic industry which would eventually lead to unemployment and a reduction in government revenue. GRAPHICAL REPRESENTATION y axis QSo $11.00QS1 QSo $7.25x axis (Minimum wage) 13.2units 20 units Units of goods produced The graph above represents the effect of an increase in minimum wage on the cost of production. From the above graph, the y axis represents an increase in the minimum wage of workers from $7.25 to $11.00. This led to the following observations. At initial minimum wage of $7.25, the number of units produced was 20units, hence cost of production is $7.25 * 20 = $145.working by assumption At new minimum wage of $11.00, producers are trying to maximize output by reducing input. Hence new cost of production is $11.00 * 13.2 = $145.2 which is equivalent to $145. Hence the old cost of production is equal to the new cost of production (Ceteris paribus) As a result of this action initial quantity supplied by producers (QSo) is reduced from 20units to approximately 13units. This is represented by a left word movement of the arrow from QSo to QS1, which signifies a reduction. In addition to this, the x-axis is also represented by a left word movement of the arrow from initial units produced (20units) to new units produced (13.2units equivalent to 13units) BENEFITS OF MINIMUM WAGE: MATHEMATICALAND GRAPHICAL REPRESENTATION MATHEMATICAL REPRESENTATION For a better representation of the benefits of minimum wage, the most appropriate model to be employed would be the national income model. This model was also used in the cost of minimum wage. It is stated as: GDP = C + I + G + X – M C- CONSUMPTION Proponents of minimum wage increase are of strong opinion that it increases the level of consumption among the citizens. This is based on one of the factors affecting demand which states that quantity demanded increase with respect to an increase in the income of individuals. In other words when the minimum wage is increased people would be able to purchase more goods and services compared to the original amount. I – INVESTMENT Since the proponents of an increase in the minimum wage believes it would eliminate low paying jobs and lead to higher paying jobs, hence as it pertains to investment, an increase in the minimum wage would lead to greater investment in high skilled industries which would be beneficial to gross domestic product. This type of investments would in most cases be long term and is very crucial in moving a country from developing to developed. G- GOVERNMENT EXPENDITURE Increasing the minimum wage would reduce the expenditure from government. This is according to proponents who believe that workers would earn more as a result of the increase and thereby depend less on the government for welfare benefits. This would eventually reduce expenditure on the part of the government and lead to more revenue on the part of the citizens. This would be very helpful to the economy as it would create a balanced budget. X- EXPORT Exports would be of great benefit to an increase minimum wage. The reason for this is that it would be very helpful in producing goods that meet international standards and can yield maximum utility. This would make the domestic country’s goods competitive in the international market thereby leading to a trade surplus in the long run. The basic reason for this is that with an increased minimum wage, employers demand more from employees. Hence their skills and competences are put to test. M- IMPORT As regards import, an increase in the minimum wage would not be helpful to imputed goods. This is based on assumption of the proponents of minimum wage increase. It is strongly believed that because the imported goods are cheap, they would most likely be substandard compared to those goods produced in the home country. Hence consumers would boycott these products and promote their domestic product instead. This would eventually increase the gross domestic product (GDP) In summary, an increase in minimum wage (Ceteris paribus) would be favorable to the economy given the following factors are synergized. GRAPHICAL REPRESENTATION: BENEFITS OF MINIMUM WAGE Y axis QD1 $11.00 QDo QD1 $7.25QDo X axis (Minimum wage) 1kg 3kg Apples in kg The diagram above represents the effect of an increase in minimum wage on consumption. A simplified analysis of the graph is stated thus: In the above diagram, the vertical axis represents minimum wage. It also shows how the minimum wage has increased from its initial amount of $7.25to $11.00 The horizontal axis shows the amount in kg of apples that consumers can purchase given their income. Ceteris paribus, at $7.25 minimum wage, consumers are able to purchase 1kg of apples. When the minimum wage is increased to $11.00, there is a great increase by 2kg bringing the new consumption of apples to 3kg. This signifies that an increase in minimum wage has a positive effect on consumption.

Why Did Wwii Break Out in 1939?

The Second World War started for many reasons but the most important were: the treaty of Versailles and the negative impact it had upon Germany, the foreign policy of Adolf Hitler and what did the other countries do to stop Hitler’s actions. The treaty of Versailles was a very important factor for the break out of war. The treaty took away land from Germany and gave it to Poland, France and Britain. This land included the colonies that Germany had in Africa that was given to France and Britain.It made Germany pay huge reparations that left them in a crisis, and Germany was already in a crisis due to the war which made the germans felt it would stop them from recovering. There were a lot of unemployment and whole families suffered from constant hunger. They had to take blame for starting the war and they did not feel it was fair because it was Serbian terrorist groups that trigger it by killing the Archduke Franz Ferdinand. The treaty also ordered the reduction of the German ar my to only 100,000 men and it limited its navy to six battleships.The Germans didn’t feel this was fair because it meant that they were nearly helpless if someone tried to conquer them and they felt bitter as the other countries didn’t had to disarm. They also had to demilitarize the Rhineland. The Rhineland was the border between France and Germany and it was demilitarized in order to protect Alsace-Lorraine. The big three had different opinions on whether how to punish Germany. Woodrow Wilson (America) thought that Germany should be treated fairly because if it was punished too harshly they would want revenge.America did not suffer as much because of the war due to the fact that the war was not fought in America and they joined the war in 1917 so they did not had such many casualties as the other countries. Lloyd George wanted also a fair settlement but the British people, as Georges Clemenceau (France), wanted revenge because all of the soldiers killed in battle and all of the harm they had done to their country. The Germans became vengeful because overall they did not see fair the treaty of Versailles and the sate it had left the country and they had their revenge with the war.The second factor was Adolf Hitler’s foreign policy. Hitler wanted to make Germany a big and powerful country so he could have revenge of the other countries because of the treaty. He started to get back all of the things that the treaty had took from Germany, starting with the joining of Germany and Austria. Hitler sent his troops and made the Austrians hold a vote to join Germany to Austria. The Nazis rigged the vote so that 99% of the Austrians voted for unification.I think that he wanted to unite with Austria because Austrians had German blood so they were part of the Master race, he also wanted Germany to be big and powerful and with Austria he would have more territory and there would be more people working for Germany and it’s army. Then he demanded the Sudetenland region of Austria back to Germany because there were 3 million German people living there and also the Sudetenland had good farming areas and also a lot of raw materials and industries.This meant that there would be more food for German people and its army, the raw materials and the industries could be used for the air force and navy for the German army. After invading the Sudetenland, the German troops invaded the rest of Czechoslovakia. I think Hitler invaded the rest of Czechoslovakia to have a better chance against the USSR and also to make easier the invasion of Poland by having more land around it. Hitler then made a non-aggression pact with Stalin, they agreed not to fight each other and to share Poland between them.Hitler wanted the land of the Polish Corridor back to Germany because it had cut Germany in two and many German people lived there. But Poland refused to give back the lands because it would mean that they would lose the only access they had to th e sea. Hitler invaded Poland so he could have back that land and to expand its territories. More land meant more men in the army and more space to oppose the USSR. And the last of the most important factors of the breakout of the war was the fact that other countries only reacted and decided to fight back when Hitler conquered Poland.When Hitler began to rearm Germany they didn’t do nothing because they were more worried of the communist invasion and they thought that a stronger Germany could protect Europe from the USSR. Then, when Hitler rearmed the Rhineland they did not do anything because they thought that it was reasonable for Germany to have troops in their own territories, I think that the other countries weren’t as bothered with the treaty as they were in 1919. When Hitler United with Austria and the Austrian leader asked for help Britain, France and Italy didn’t do wanted was peace.In 1938, Britain and France made an agreement with Hitler saying that h e could have the Sudetenland back if he didn’t took the rest of Czechoslovakia. They were so centered on maintaining peace that they didn’t even talked to the Czechs of this. But when Hitler broke this agreement they didn’t help Czechoslovakia because they wanted to evade war by any means and they promised Poland that if they were attacked by Hitler’s army they would help them. They began to prepare for war because they knew that if Hitler continued his invasions then Poland would go next.When Hitler invaded Poland, England and France declared war on Germany but they did not send any troops to help Poland as they had promised because they thought it was too late for Poland. On my opinion, if the other countries had decided to act earlier when Hitler was beginning to expand they would have been able to evade war because he was not powerful enough. I think that if they had actually tried to stop war they would have actually done something because it was ver y obvious that Hitler wanted revenge and he would do more than reversing the treaty of Versailles.If they had done something things could have been very different to what they are now. There wouldn’t have been so many deaths from soldiers and citizens from the cities, and also whole cities would not have been devastated by the bombs. Also there would not have been as many victims from the holocaust were thousands of Jews died in the concentration camps. In conclusion, the other countries could have prevented the WWII from happening easily by acting when Hitler was weaker.

Analysis of The Scarlet Letter Ch

Nathaniel Hawthorne expresses Hester Prune's self-perception by using the concept of physiognomy, the notion that the outer appearance of a person reflects his or her Inner qualities. One of the common methods through which people display their beliefs and emotions is the manner In which they present themselves to society. Hester displays her beliefs about her own character through her choice of clothing. Hawthorne also uses clothing In order to depict Hester Implementation of self enmeshment, which is a result of her negative self-perception.She alms to express that her appearance has become so unattractive as a result of her sin. In other words, her the unbecoming state of her heart which has become Impure Is reflected In her clothing made of â€Å"the coarsest materials† with colors of â€Å"the most somber hue. † The most eye-catching article of her outfit, the scarlet letter, also greatly contributes to the physical display of her sin. Purposely reminding the peopl e and herself about that which she is guilty of is how Hester punishes herself mutinously.Her self punishment involved not only wearing â€Å"plain† clothing, but also practicing asceticism in order to prevent her from experiencing any form of enjoyment. When Hester â€Å"devoted[sees] so many hours† to sewing â€Å"coarse garments† she is limiting herself from reaching her true potential of artistic talent. The coarse garments are symbolic of the bland dull distractions she turns to in order to restrict herself from working on that which she is truly passionate about, in other words, to refrain from creating beautiful and arabesque articles of clothing.Initially one would find Hester adornment of Pearl ironic in regards to her decision to live simply without any form of enjoyment. However, after closer inspection, it can be inferred from the diction within the text that this might be another form of self punishment. Hester makes beautiful clothing for her daugh ter Pearl to wear, however this is not for the sake of her passion to create elaborately designed needle-work. The fact that Hawthorne chose to introduce Pearl's attire in this specific paragraph nits that there is a relation between Hester self punishment and the reason behind why she adorns her daughter.The implied â€Å"deeper meaning† refers to the same reason why Hester wears plain clothing. Pearl's beautiful clothing makes her stand out when seen in the community, and the color and fancy design of the cloth reminds both Hester and the people of the scarlet letter. Thus, Hester uses Pearl's attire as a way to punish herself; the clothing will never allow her nor society to forget what she did. Even today, clothing Is one of the mall WAP through which people express themselves.It Is also a way through which they reward themselves. The opposite of this case Is seen in chapter 5 of The Scarlet Letter; Hawthorne uses clothing to depict how Hester displays negative self-perce ption. She believes that she must atone for elaborate embroidery. She also uses clothing as a form of self punishment when she dresses her daughter, as it will serve as a constant reminder of her scarlet letter and of the fact that she is forever labeled as an adulteress.

Rose And I Have Been Best Friends For Almost Nine Years

Rose and I have been best friends for almost nine years. We met at Oak Grove Elementary School in the sixth grade. She is Astonishing! It’s easy to describe her because she is an incredible person who made a positive influence in my life. Rose has transformed me from being stubborn and egocentric into a free spirit individual and showed me how to be even-tempered for the potential life. As I analyze Rose’s journey, she have shown courage, positive qualities during her fight with cancer. It was a tough development to absorb in her toughest moments. Every six months, Rose visits the clinic for a checkup. Lately she’s been having chest pain and felt a lump in her throat. So she decided that it was time for an early checkup. She schedule an appointment for the following day. When she arrived to the clinic, she explained to her doctor about her symptoms. Admittedly he took an X-Ray of her chest. When the results came back, it showed that her lungs had disintegrated and the right side of her chest was filled with fluid. The doctor took a sample of the fluid and sent it to the lab for testing. Within thirty minutes, the doctor came back with a blank expression and said, Rose I’m sorry but the test result showed that you have lungs cancer stage four. The tears have subsided, and the overall confusion begins. At that moment, I had two choices: I could support her, learn collectible lessons throughout her cancer journey or be selfish and walk away. Of course, I quickly embrace myShow MoreRelatedMy Day With My Best Friend14 57 Words   |  6 Pagestest, I was going to spend the day with my best friend, Katherine, for the first time after, so long now that her mom trusted me more. â€Å"Honk!’’ was the sound I heard that signaled me that Katherine’s dad was here. She opened the door, as usual because she was so courteous to me at school. I got into the rusty gray Honda. 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