Raising minimum wage in texas
Critics argue that low wages do not improve well-being but are profitable because they disrupt the labor market (Murphy et al. The paper could focus on quasi systemic reviews, which focused on the secondary sources of data relating to the topic of discussion. The paper initiate that raising the minimum wage is a process that has economic ramifications both to the economy and its people. Employment, standards of living, youth, and women, taxation are some of the sectors that would be affected by raising the minimum wage rates. The policymakers in Texas should critically analyze the optimal minimum way to make their citizens have accessible and affordable housing conditions. The long term effects take a little more time to manifest itself, and it might be dependent on the short term effects which showcase in the future.
These impacts, both negative and positive, should be well analyzed before the increase in the minimum wage. Economists argue that levitation the minimum wage above the federal limits has serious ramifications to the economy. The impacts of levitation the minimum wage in Texas can be summarized into the following; Influence on well-being Employers may not appropriately adhere to the requirements of the minimum rules. For example, businesses operating in countries with high economic incomes tend to offer workers under-the-table compensations, sometimes referred to as appreciation, which is not taxable. The employees work with more enthusiasm knowing it's worth the pay. The higher rate of wage gives morale to the individual to work harder. The efficiency in their job is higher and provides the best returns.
Individuals who are heads of the family who used to work stressfully for the pay could meet the family demands will now work stress-free. The workers' potentiality will be realized that they will be working with their utmost concentration. A more extensive scope of employees earns the government more taxes from deductions from payroll remitted to the government. Unemployment Texas is a well-developed economy that has business and industries which can sustain challenges such as unfavorable business conditions. Some of these unfavorable conditions include inflation, lower profit margins, among others. For such a well-established organization, the effects of wage increment to unemployment are not immense (Meer & West, 2016). On the contrary, for startups businesses and small enterprises, the increase in the minimum wage will cause a rise in unemployment.
For example, a company that is the only employer in a given market may require lower wages than its competitors. In this case, a minimum wage can increase workers' incomes without reducing employment. Higher wages may attract more workers and thus increase employment (Konigsburg, 2017). Decades of research have not resolved the debate. Some studies have shown that the minimum wage brings essential benefits to workers. The government will intern save some money which used to fund the women and youth, for they will be now self-reliant. Many people will be well off, the poverty level will decrease, and the government's expenditure on poor people will be minimal. Such funds would be channeled to serve other emergencies in the government. According to Komro et al.
(2016) argue women and youth who have been encouraged to work by the higher minimum wage rate will increase the number of employees in the market, which in turn earns the government more taxes from the payroll. Enterprises Enterprises that depend mostly on human power for the production of its products will be profoundly affected. The minimum wage, when raised the companies cost of production rises, which has a direct influence on profit. The firm's profit margins will decrease drastically. The management will opt to take measures to rescue their business by shifting from manpower to automated machines. On the other hand, as Marchbanks III et al. The poverty range will be widened in that a larger group will be unemployed. They will need to work extra harder to attain at least some pay equal to the minimum wage.
To some extent, the cost of living will also rise. The more people have the purchasing power, the more the demand is high. The demand will exceed the supply forcing the prices of commodities to hike. Minimum Wage Increases and Workers' Well-Being. Working Paper, Baylor University, Waco, TX. Johnson, O. C. Inclusion, Exclusion, and New Economic Inequality. The effect of an increased minimum wage on infant mortality and birth weight. American Journal of Public Health, 106(8), 1514-1516. Konigsburg, J. The Economic and Ethical Implications of Living Wages. Religions, 8(4), 74. The economic effects of exclusionary discipline on grade retention and high school dropout. Closing the school discipline gap: Equitable remedies for excessive exclusion, 59-74. Meer, J. , & West, J. Effects of the minimum wage on employment dynamics.
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