English 289 Blog

Wednesday, November 23, 2011

Thesis

Increases in U.S. minimum wage have both positive and negative impacts on the labor force. Although workers currently earining minimum wage experience a higher paycheck, those making slightly higher than minimum wage tend to experience the most lay-offs, reduction of hours and other negative consequences as a result.

Sunday, November 20, 2011

Professional Sources

Adam, Antonis; Moutos, Thomas. "Minimum Wages, Inequality and Unemployment." http://www.sciencedirect.com/ 2 May 2006. Web. 13 November 2011. http://journals.ohiolink.edu.proxy.libraries.uc.edu/ejc/pdf.cgi/Adam_Antonis.pdf?issn=01651765&issue=v92i0002&article=170_mwiau

Bartlett, John. "Minimum Wage Increase Helps State Working Class." McClatchy-Tribune Business News. July 23, 2006. Web. Proquest. November 20, 2011. http://search.proquest.com.proxy.libraries.uc.edu/abicomplete/docview/462509672/13329D2EB7D1FF17FFE/6?accountid=2909

Hamrick, Karen. "Minimum Wage Increase Would Have Greater Impact on Food System Than On Overall Economy." FoodReview. April 1999. Web. ProQuest. November 20, 2011. http://search.proquest.com.proxy.libraries.uc.edu/abicomplete/docview/200316842/13329D2EB7D1FF17FFE/5?accountid=2909

Mason, Charles F. "Minimum Wages and Information" Journal of Economics and Business. 31 August 2000. Web. 13 November 2011. http://journals.ohiolink.edu.proxy.libraries.uc.edu/ejc/pdf.cgi/Mason_Charles_F.pdf?issn=01486195&issue=v53i2-3&article=153_mwai

Neumark, David; Wascher, WIlliam. "Do Minimum Wages Fight Poverty?" Western Economic Association. July 2002. Web. ProQuest. 14 November 2011. http://search.proquest.com.proxy.libraries.uc.edu/docview/200898005?accountid=2909

Neumark D, Schweitzer M, Wascher W. Minimum Wage Effects throughout the Wage Distribution. Journal Of Human Resources. Spring2004. Web.November 14, 2011. http://web.ebscohost.com.proxy.libraries.uc.edu/ehost/detail?sid=f1f5b739-b54c-4025-a2af-224df15d2be8%40sessionmgr15&vid=1&hid=11&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=ehh

Monday, November 14, 2011

Professional articles

Adam, Antonis; Moutos, Thomas. "Minimum Wages, Inequality and Unemployment." http://www.sciencedirect.com/ 2 May 2006. Web. 13 November 2011. http://journals.ohiolink.edu.proxy.libraries.uc.edu/ejc/pdf.cgi/Adam_Antonis.pdf?issn=01651765&issue=v92i0002&article=170_mwiau
The ideal level of minimum wage should be obtained through voting population.

Mason, Charles F. "Minimum Wages and Information" Journal of Economics and Business. 31 August 2000. Web. 13 November 2011.
http://journals.ohiolink.edu.proxy.libraries.uc.edu/ejc/pdf.cgi/Mason_Charles_F.pdf?issn=01486195&issue=v53i2-3&article=153_mwai
This piece investigates the relationship between minimum wage and the rate of unemployment. Optimum employment can be achieved with the proper allocation of resources.

Neumark, David; Wascher, WIlliam. "Do Minimum Wages Fight Poverty?" Western Economic Association. July 2002. Web. ProQuest. 14 November 2011. http://search.proquest.com.proxy.libraries.uc.edu/docview/200898005?accountid=2909
Poor families can escape poverty through minimum wage increases and families that are not poor can fall into poverty due to the minimum wage.

Workers near minimum wage can increase pay but can also experience decrease in hours. Data reveal adverse effect on these workers.

Thursday, November 3, 2011

Popular audience

The popular audience for my issue is middle-class adult Americans (that could possibly be my customers or employees). The middle class makes up the majority of the population in the United States and since most do not have a professional background in business, they need more information on the topic of minimum wage increase. It is important because this huge population votes and determines the fate of our country, so it benefits everyone for them to be informed when they vote yes or no on issues that make appear on the ballot such as minimum wage increase. They want to hear that increase in minimum wages will fix unemployment, inflation and the economy in general, however, this may not be the case. The popular audience will be hesitant to accept such a paradigm shift like decreasing the minimum wage. In order to effectively inform my target audience, first reasons need to be explained as to why increasing the federal minimum wage can hurt the economy and examples of past occurences of such. Second, possible outcomes of not increasing the minimum wage need to be given to show people how the economy doesn't always work in the way that is expected.

Wednesday, October 26, 2011

Hot topic paper rough draft- Minimum wage increase

Brittany Habli

Eng 289 Hot Topics Paper

October 25, 2011

Currently the U.S. minimum wage is around $7.25/hr, roughly $15,000/yr for full-time hourly workers. It is estimated that 6% of the hourly work force (4.4 million people) live off of minimum wage. With inflation and unemployment on the rise, it is a topic of debate whether or not the minimum wage should be increased.

In the business world, minimum wage increase is a very hot-button issue. The public mostly supports the increase in minimum wage and has voted for the increase consistently. Many economists and professionals argue that minimum wage increase is counter-productive, while some say it can circulate more money into a struggling economy.

Minimum wage increases, like many other government attempts at correcting a negative externality, have their pros and cons. On one hand, people are spending more to obtain less goods and services, so a pay increase would help correct that gap. On the other hand, increasing wage may actually put those people out of jobs, making them worse-off than they were before. The question remains: Who is benefitting from the increase in minimum wage? And of those benefitting, is it the intended demographic?

The Public

The general public opinion of minimum wage is positive. Voters time and again support increase in the minimum wage. Many newspaper and internet opinion polls reveal that the general population feels that workers earning the lowest wages are in need of a pay raise to off-set the rise in the cost of living. Inflation is also a factor that shapes the opinion of the working class. With a general rise in prices, consumers are struggling to make “ends meet” and many believe that an increase in minimum wage could help adjust for the difference. With more money going into the paychecks of low-wage employees, it is possible that the extra money would be recycled into the economy as consumer spending, especially since employees making minimum wage rarely are able to save and are forced to spend money on their needs. Public opinion also advocates that higher wages would boost job growth and more workers would actively seek out employment. Many believe that pay raises would encourage employee retention.

The minority of public opinion that does not support the increase is that of the workers making slightly higher than the current minimum wage. To this group, it would mean a new group of people would be on the same income level as them, creating more competition for their jobs. Since the increased minimum wage does not apply to them, it only means more rivalry for their current positions.

Professional Views

Businesspersons typically disagree with the public opinion on minimum wage increase. From a more informed point of view, research suggests that a higher minimum wage will not help families living below the poverty level. According to a 2009 article by the Wall Street Journal, an estimated 34% of the minimum wage earners are from high-income families. An increase in the wages of these workers would not improve the standard of living for the poorest people for whom the increase was intended. The poorest of families are typically unemployed or low-skill adults earning slightly above the minimum wage and would be competing with new workers making the same pay as them after the increase.

An increase in the minimum wage can have a negative effect on the ability of workers to keep or obtain new jobs. Many companies respond to rising wage costs with lay-offs. When reviewing finances, the cost of labor is typically very high, so naturally it is the first target for “cutting corners”. Then, once a person is let go due to budget cuts one can imagine how difficult it may be to find a new job in a market where companies are cutting any relatively unnecessary jobs. Employers also have the propensity to retain younger workers that are perceived to have more potential and fire low-skill adult workers.

In terms of minimum wage rates and small businesses, many states have made a distinction between big businesses and lower earning businesses. Some states, like Ohio, will allow businesses earning under $283,000 to pay employees $7.25/hr whereas the new (2012) minimum wage will be $7.70/hr. This is a very important condition in the law for the small business owners who are currently struggling to pay their labor costs.

Not all in the business field disagree with the increase in minimum wage. Some argue that an increase in pay could generate up to $9 billion back into the economy in terms of consumer spending, which would in turn be like a stimulus. Also, a minority of economists suggest that such an increase in wages would reallocate money from corporations to households. Corporations have a tendency to retain much of their profits for future growth, whereas low-wage earners are forced to spend most of their earnings on necessities plus a small discretionary income to be spent and therefore pumped back into the economy.

The U.S. Chamber of Commerce is known for their stand against minimum wage increases largely because it can encourage inflation. If wages increase in response to inflation, there is no incentive for prices to come back down. Wage increases are deemed to be a long-term solution to short-term market fluctuations and adding to the fact that no conclusive evidence suggests that an increase in minimum wage improves unemployment.

For nearly ten years, up until 2006, the minimum wage barely moved, but recently with a lethargic economy, adjustments are being made in some cases on a yearly basis. The economic crisis of 2008 officially knocked the U.S. and other countries into official recession and minimum wage increases, unemployment and inflation are the hot topics at many “water coolers”.

Works Cited

Sheketoff, Chuck. “2012 Minimum Wage Hike Good for Oregonians and Good for Economy.” Blue Oregon.org Mandate Media September 15, 2011. Accessed October 19, 2011. http://blueoregon.org/2011/09/2012-minimum-wage-hike-good-oregonians-and-good-economy/

“A Minimum Wage Increase.” The New York Times. March 26, 2011. Accessed October 19, 2011. http://www.nytimes.com/2011/03/27/opinion/27sun2.html?_r=1

Johnson, Alan. “Ohio to Increase Minimum Wage in January.” The Columbus Dispatch. September 30, 2011. Accessed October 19, 2011. http://www.dispatch.com/content/stories/local/2011/09/30/ohio-to-increase-minimum-wage-in-january.html

Neumark, David. "Delay the Minimum Wage Hike." The Wall Street Journal. June 12, 2009. Proquest. Web. Accessed October 21, 2011. http://search.proquest.com.proxy.libraries.uc.edu/business/docview/399057514/1328F1A7F3833B618A/4?accountid=2909

Sullivan, Laura; Robertson, Tommy J; Brown, Diana B. "FLSA And the Minimum Wage: Employee Friend or Foe." Journal of Legal, Ethical and Regulatory Issues. 14.1 (2011): 131-146. Proquest. Web. Accessed October 21, 2011. http://search.proquest.com.proxy.libraries.uc.edu/business/docview/886547575/1328F291F4156C373E7/5?accountid=2909

Friday, October 21, 2011

Article 1) It is estimated that about 34% of the minimum wage earners are from higher-income families and the increase in minimum wage will not help families living below the poverty level. Also, the increase in minimum wage give employers incentive to fire low-skilled adult workers.
Article 2) The increase in minimum wage is making it harder for workers to keep current and obtain new jobs. Also, there are a lot of people that fall into the category of "underemployed" meaning they are over-education/qualified or have too much experience for the job in which they are employed.

Works Cited

Wednesday, October 19, 2011

Hot topic research-minimum wage increase 2012

According to the article I found in the Columbus Dispatcher, businesses earning less than $283,000 (gross) are subject to lower minimum wage rates for employees. These companies are obligated to pay employees, including 14 and 15 year olds $7.25/hr, whereas companies grossing more than that amount by the new law (effective the first of 2012 in the state of Ohio) would be obligated to pay workers $7.70/hr. It is very interesting that the government made the distinction between small business and larger businesses. It seems that the general public is in favor of the increase in minimum wage. The New York Times states in the article "A Minimum Wage Increase" that the 4.4 million people (6% of the hourly workforce) live off of miniumum wage and they need a pay raise to off-set the cost of living and the rate of inflation. Most people are clamoring for higher pay and are struggling with the current minimum wage.

Sheketoff, Chuck. “2012 Minimum Wage Hike Good for Oregonians and Goo for Economy.” Blue Oregon.org Mandate Media September 15, 2011. Accessed October 19, 2011. http://blueoregon.org/2011/09/2012-minimum-wage-hike-good-oregonians-and-good-economy/

“A Minimum Wage Increase.” The New York Times. March 26, 2011. Accessed October 19, 2011. http://www.nytimes.com/2011/03/27/opinion/27sun2.html?_r=1