A Raise on Minimum Wage

Minimum wage… should the Government raise it? Hmm, that’s a thoughtful question.  Many things to be consider. The pros and cons need to be reviewed.

I believe that the costs of raising minimum wage by far out ways the benefits. Sure, people may gain more money to support themselves and their families. Sure, they won’t have to work as many hours as they would usually have to, to reach their needed income. Sure, it’s nice to have a higher pay grade, but there comes a price that everyone must pay with those high wages.

One cost of raising the minimum wage is unemployment. If a rise in minimum wage is enforced by the government, then businesses will have to cut back on employees to make a profit and cover costs. If employers don’t cut back on employees, then businesses will have to raise the prices on their services and goods, which is bad news for the customers; making this the second cost of raising minimum wage. Not only will a higher price on goods and services be unpleasant for the consumer, but it could also put a damper/ dent on the wellbeing of businesses.  Raising minimum wage “does nothing to make these workers more “valuable” on the job market. Instead it puts small businesses in an unacceptable bind that helps non one”, Edward Morrissey in The Fiscal times.  Jen Laurson and George Pieler stated in Forbes that “a higher minimum wage make sense to restore that balance of a booming economy, but in a struggling economy-when higher hiring costs kill jobs- that equilibrium point “is always Lower””.  Another cost due to a rise in minimum wage payment could also be fewer benefits for those employed. Business must find some way to get their profits to outweigh their costs and taking away benefits from workers is one way that they can do that. It would only seem right to take away from their benefits too, because what they may have lacked in pay the employees got back in benefits.

So those were a few of the reasons why I do not support a raise in minimum payment. With minimum payment the costs seem to outweigh the benefits. With a rise in minimum wage employers will find ways to cover the balance the costs and benefits, which could cause more unemployment, loss of benefits, of higher rise in service and good prices.

Work Citing:

1)      Hernandez, Sergio. The Week.N.p., 21 Feb. 2013. Web. 22 Feb. 2013.

http://theweek.com/article/index/240460/how-will-raising-the-minimum-wage-affect-the-economy

Economics 3.01: George W. Jenkins

 George W. Jenkins, the founder of Publix Supermarket, was a hard working American businessman and philanthropist. George was born in 1907 in Warm Springs, Georgia and was one of eight Children to his Father who owned a general store. George worked in his Fathers store till the age of 14, which was around the time when the shop closed to bankruptcy, due to a lack of crops. At the age of 17, George was working a lot of odd Jobs and eventually ended up in Tampa, Florida working at the Piggly Wiggly. Within five weeks of the Job, George was promoted to store manager, as a reward for all his hard work. Later George was rewarded again and given more responsibility by getting a promotion at the Piggly Wiggly’s biggest store in Winter Heaven. Four years after his promotion, the Florida boom collapsed and his store began to fail. Eventually, the Piggly Wiggly chain sold out and George left the company. After leaving the Piggly Wiggly, George opened his own grocery store in Winter Haven in 1930. From then on his store flourished, growing into one of America’s largest grocery chains. Not only did George just develop a incredibly successful business but he also started, with his own stock, a charitable foundation that works to enhance the communities located around his stores; His charity today known as The Publix Supermarket Charities. He was a benefactor to many charitable funds and was very dedicated to improving communities. Jenkins is a wonderful inspiration. He stayed strong and worked extra hard during tough times, making for himself a successful life and career; but also giving back to those who help support his successful life, the customers; the community.

In my economic studies, there is this system called the HUNT that shows the common characteristics that successful entrepreneurs share. The H in HUNT stands for harnessing your vision; this is the time where you must think about your idea and what it will take to accomplish it. The U in HUNT is for Underestimating the road blocks. You must prevent barriers from stalling you action. The N in HUNT stands for Network; you must find and put yourself with people who can help make your vision possible. And lastly we have the T in HUNT which stands for Taking the first step. Taking the first step maybe the most difficult, but it’s what gets you started and will give you confidence to take the step after that. George W. Jenkins to followed these HUNT steps. George put much thought into his idea, he underestimated the roadblocks, when even though he didn’t have much money he still went out to fulfill his dream; not letting cash be the barrier that stopped him. George surrounded himself with great associates that helped to make his idea grow. He took the first step to becoming a successful entrepreneur by opening his first supermarket in Winter Haven.

 

Works Cited:

George W. – Welcome to Publix Super Market Inc., Retrieved February 15, 2013:

http://www.publix.com/files/Media%20Kit%2075th%20-%20Publix%20Leaders.doc

New York Times, George W. Jenkins dies-88-$9 billion grocery chain, Retrieved February 15, 2013: http://www.nytimes.com/1996/04/10/us/george-jenkins-88-founder-of-9-billion-grocery-chain.html