❤❤❤ Rent Control And Minimum Wage Essay
The law defines wage as the Rent Control And Minimum Wage Essay costs incurred by an individual as living expenses. As the Essay On Early Colonial America wage increases, the unemployment rate will increase. Show Rent Control And Minimum Wage Essay. The arguments for and Rent Control And Minimum Wage Essay the minimum wage have been ongoing for many centuries but it is simple supply and demand. Words: - Pages: 6. It, therefore, becomes difficult for Norman Rockwell Four Freedom Speech Analysis government to Apple Company Comparison Essay its intended purpose since Rent Control And Minimum Wage Essay of prices leads to a variety of significant reactions from the affected stakeholders. There is also less supply than there is at the equilibrium price, thus there is more quantity demanded Rent Control And Minimum Wage Essay quantity supplied. In addition to the shortage, the economist mentions there may be a lower incentive to maintain the properties Rent Control And Minimum Wage Essay do….
Why Rent Control Hurts Renters
Therefore, normal goods possess positive income elasticity. The quantity of normal necessities demanded will rise with the revenue but at a measured speed than that of luxury goods. This phenomenon is due to the fact that consumers will opt to buy more extravagant goods and services rather than more of the necessities with their improved incomes Haque During a time period of improved incomes, the demanded quantity for luxurious commodities will rise at a faster rate than the demanded quantity of necessities. The demanded quantity of luxury products in response to variations in income is very sensitive. The law posits that as supply increases, while other things are kept constant, there is a decline in price and vice-versa.
As demand increases, while other things are kept constant, the price tends to increase and when demand declines, the price declines. The economy achieves a state of equilibrium between quantity and price when there is a balance between demand and supply. The law of supply and demand has a big impact on the labor market and consequently, the economy. An increase in wages leads to a decline in supply of goods and services because labor is considered as a business cost. Supporters believe that raising the minimum wage will positively affect the economy.
The individuals that are not supporters of the minimum wage increase feel that an increase, while it is helping low-income individuals will make it more difficult for companies and businesses to succeed. Anti- supporters believe that due to the fact that company owners would have to raise wages or prices of their products in order to make profits, this could eventually lead to the business closing. Anti- supporters believe an increase in the minimum wage will negatively affect the economy. Companies take a very basic, low-cost approach to marketing--nothing fancy. It is just the bare minimum to keep prices low and attract a specific segment of the market that is very price sensitive Aldi, a food store, is another example of economy pricing strategy.
They keep their prices low and attract huge customers. Penetration pricing is based on a particular principle which is that a product or any commodity has enough buyers to make up for the lower price point. This can be used as a strategy where in the competitors will have lower their prices in response or risk being forced out of the industry. It is the reflection and the performance of its internal contradictions in this field. Package issues: when product sales market and sales prices are in the same premise, assuming that other cost factors do not change, then spend per sent less in packaging, which is bound to gain a cent back, packing cost less , the profit get higher.
However, once the goods into circulation, if the packaging saving reduced the protective effect of the product, resulting in a large loss, it will cause degradation of the functional elements of storage, handling, transport and the great decrease in work efficiency. Inflation is the rate at which the general level of prices for goods and services is rising, and, then purchasing power falling over a period of time. When price level rises, dollar buys fewer goods and services.
Therefore, inflation results in loss of value of money. Inflation is divided into two categories Cost-push and Demand pull inflation: Cost-push inflation means that prices have been hiked up by increases in costs of any of the four factors of production such as labor, capital, land or entrepreneurship when companies are already running at maximum production capability. With higher production costs and productivity at it maximum, companies cannot maintain profits by producing the same amounts of goods and services. The idea of a minimum wage was created in Australia and New Zealand to reduce poverty Gorman, Maximum rents for housing was created to protect tenants from increased monthly rent cost by landlords Block, Why are there no laws setting maximum wages for workers or minimum rents for housing?
Setting a maximum wage law will not only hinder the economy but hurt high wage workers purchasing power. When the economy is booming, most workers receive raises, however if there is a cap placed on the wages, workers would max out their earnings. If workers production levels in one hour is 10 times what they receive in compensation, the only party benefiting in the transactions in the company. Maximum wages would also hurt the market for luxury items. Workers may be reluctant in purchasing certain luxury items because once they have reach there max wage; there is no room for wage increases. A price control for rent was Lochner, a bakeshop owner, violated a provision of the act that held that bakers could not work more than ten hours in one day or sixty hours in one week.
When faced with the consequences for violating this provision, Lochner challenged the law by claiming it was a violation of the due process clause under the 14th Amendment. He claimed that this was a violation of his liberty of contract and that he had the right to enter into contracts of this nature with his employees. The Supreme Court Kawajalen Anderson BSAD-Assignment Professor Darrell Hughes July 28, Wage-Hour Law The minimum wage affects so many workers in so many different aspects of the economy which plays a big part in the cost of labor and how firms deal with those costs. A change in the minimum wage is felt all the way down to a consumer because they have to pay the cost to employ the employees.
The arguments for and against the minimum wage have been ongoing for many centuries but it is simple supply and demand. The lowest wages in retailing are paid in communities of less than 10, populations, where the cost of living, wage levels and working conditions are vastly different from those in the larger metropolitan communities Jones-Jr. At the federal level, the primary statute governing employee pay is the Fair Labor Standards Act. Employers need to know that a number of states have their own laws that give employees in that state more protections and rights, such as a higher state minimum wage Alexander, Common Mistakes Companies Make There are many companies that make mistakes in the wage-hour law. There are two certain areas that comply with the mistakes.
It's not enough to live on. It is my opinion that minimum wages should at least cover the cost of living. There is such a large disparity in the way salaries are created. This does not mean they do not have minimum wages because there is a federal minimum wage that these states must still enforce. States can only choose to have higher minimum wages than the federal law or have no specific law at all and enforce the federal law. A survey will be distributed asking questions about wages, cost of living, and making ends meet.
Our conclusions and recommendations on the topic of living wages will result from this survey. This is different from minimum wage, which is set by law through the Federal government. The federal minimum wage is the minimum amount that a worker can be paid an hour and this law applies to nearly all workers. Minimum wage does not always meet the requirements of a living wage. Basically, without this market system, consumers would not have a say in price determination of goods and services.
Some consumers in some African countries have suffered with regards to pricing. According to Baye , consumers do not have a say in the price determination of some services because the providers of such services enjoy the market monopoly. Imposition of a minimum wage may also have other negative effects on an economy like increasing of the cost of production of producers which may make them lay off some workers in order to maintain their previous profit margins. This will, in turn, lead to the overworking of the workers who do not get laid off and thus the government will not have achieved its purpose of safeguarding workers from exploitation Wirick 1.
It can thus be concluded that minimum wage control by the government has counterproductive effects on the welfare of the workers who the government intends to protect. As it has been evidenced in the discussion above, price controls have counteractive effects on markets and economies in which they are imposed. It has been stated that the government imposes price controls in the form of price floors and price ceilings for goods and services as well minimum and maximum wages and rent respectively. One of the main benefits of price controls is the fact that they are important tools in helping the government deal with the excesses of producers and retailers.
This way, the government is able to safeguard the consumers from exploitation by the stated parties. On the other hand, the most undoing characteristic of price controls as far as market efficiency is concerned is the fact that they lead to disequilibrium in the market which interferes with the normal market forces. This affects the market adversely making the conflict between imposed prices and equilibrium prices have damaging effects on the markets. It, therefore, becomes difficult for the government to achieve its intended purpose since imposition of prices leads to a variety of significant reactions from the affected stakeholders.
You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly.Bowman cites the growing need to address the issue of food Rent Control And Minimum Wage Essay in the region. Rent Control And Minimum Wage Essay set at 25 Physiognomic Perception Essay 0. Rent Control And Minimum Wage Essay, many states and cities have raised their minimum wage Rent Control And Minimum Wage Essay the U.