the effects of employment as a result of minimum wages
Abstract
Minimum wage is an essential microeconomic concept both in the national and regional levels. It helps determine the legal fees per hour workers are entitled to in the labor market. It may have adverse effects since there are higher rates of unemployment. As a result, the labor supply increases since more people are willing to work at the minimum price. Despite this, businesses are less likely to higher workers since the demand for labor reduces. Fortunately, there are fewer chances of this happening since businesses usually improve their practices by training their employees to stabilize the market. “The medium is the message” is a quote by McLuhan stating that all plans have courses to follow before implementation (Mcluhan, 1964). In this case, it means that with the introduction of the minimum wage, all facets of life have negative and positive consequences. A minimum wage is a medium with a message since it is the manifestation of a thought process. It also amplifies and accelerates processes that already existed.
Keywords: Minimum wage, McLuhan, medium, message, workers.
Introduction
In the past few decades, the effects of employment as a result of minimum wages have significantly developed. Employers are required to pay the highest minimum fee suggested by local, state, and federal law. As of July 2009, these wages are at $7.25 an hour, though most workers earn more. As of May 2019, the number rose to $11.80, the highest since 1994 (Dube, 2016). In neoclassical economics, it is stated that raising the price of service reduces its demand. Neoclassical economists, therefore, believe that building these wages will negatively affect employment. Other economists, however, believe that a limited increase in minimum wage will not affect the availability of jobs. It has been discovered that in most literature concerning minimum wage and the effect of increasing it, there is publication bias. Studies about this are conflicting though most of them support the theory that an increase in these wages will result in unemployment or reduced working hours.
Background
History
Legislation for minimum wage begun at the end of the nineteenth century during industrialization. Women and young workers were employed in sweatshops where their payments could afford them the necessities of life. It was despite them working long hours in unsanitary and unsafe conditions. In the progressive era between the 1890s and 1920s, reformers, religious figures, politicians, women’s organizations, and academics were crucial in the passing minimum-wage laws. Consumer groups also tried to improve working conditions by boycotting made in situations that did not conform to the expected guidelines for working houses. Unfortunately, advocacy by the consumers was slow in changing the conditions in these industries. Massachusetts was the first to pass the minimum wage law in 1912 in the United States. Something significant in the passing of this law was the Lawrence textile strike, which had happened for ten weeks at the beginning of the year. It ensured the attention of the nation was focused on the difficulties textile workers faced due to their low wages (Neumark, 2017). The state legislatures who were afraid of the strike’s magnitude had no other choice than to pass progressive labor legislation. By 1923, fifteen states had passed these laws. However, the Supreme Court, in the Lochner era, invalidated labor regulation laws regularly. Before, women were given special treatment since they required more protection than men, and advocates hoped this would be the case with minimum wage laws. However, the Nineteenth Amendment had been passed, giving women legal rights resulting in the Supreme Court ruling they did not deserve special treatment.
Organizations
Specific organizations ensure workers’ wages meet the minimum living and working age. National Employment Law Project (NELP). The organization endorses programs and policies that form good jobs, guarantees workers’ rights, and helps unemployed individuals regain their economic footing. The Economic Policy Institute (EPI) is a think tank aiming to widen public debate concerning ways to attain a fair and prosperous economy. They usually focus on central themes like jobs and unemployment, raising America’s pay, and minimum wage. EPI aims to make wage growth a critical and urgent national matter. The Political Economy Research Institute (PERI) is based in the University of Massachusetts Amherst. The programs it focuses on are those of Wages and Poverty and Labor Markets. These organizations are instrumental in ensuring that employees earn fair wages regardless of their race and gender (Totty, 2017). The Brennan Center for Justice can be found at the NYU School of Law. It helps the living wage movement in legal and technical means. Good Jobs First is a resource center helping people trying to make economic development subsidies effective and accountable. These people are also helped to create and access well-paying jobs. Los Angeles Alliance for the New Economy (LAANE) is working towards building an economy founded on good jobs, a healthy society, and a thriving community. In LA, the organization is aiming to achieve living wages for the hospitality industry.
Literature Review
Will increasing the minimum wage have a detrimental effect on the economy? I looked at a few articles to find out more information, and these are the results I found. A Forbes magazine article focuses on the adverse effects that may be a result of raising the minimum wage. In summary, the article states that the cases of employment would rise, which would drastically affect minorities like the black community. An article that contrasts this theory is the NPR article concerning IKEA, where the company’s president states that an increase in the minimum wage is beneficial. Employees who are well paid will be happy to work in the company, which will translate into how they communicate with clients (Yang, 2019). As a result, the company will gain more clients, thus improving the capital it generates. It is notable that IKEA only believes the minimum wage should only be increased when performance directly impacts sales and profits.
Conclusion
The medium is the message is a statement which means that all plans have steps they must follow to be implemented. The medium is represented by the society finding it difficult to pay workers a living wage. The message is the poor working conditions minimum wage workers find themselves in. They are also not able to provide for themselves and their families, resulting in crime rates skyrocketing (Neumark, 2018). When the fight for minimum wages began, it was to benefit women and young people in workhouses under deplorable conditions. Activists and politicians fought for workers’ rights, and they were able to accomplish their mission in the end. The medium of the message has changed since today; minimum wages are equal for everyone regardless of gender, race, or age. Those fighting for minimum wages today are the workers themselves through unions, the public, politicians, and activists. These wages are crucial in ensuring that working individuals are compensated for the effort they put in at work. Despite the articles stating that raising minimum payments is detrimental, I still think that they should be increased. The wages right now can barely support an individual who has to pay rent and utilities. Workers should be able to at least live off the wages that they are paid.