Tuesday, November 12, 2013
In Washington State, Home of Highest Minimum Wage, a City Aims Higher
http://www.nytimes.com/2013/10/14/us/in-washington-state-home-of-highest-minimum-wage-a-city-aims-higher.html?_r=0 Due 18 November 2013 at 6am. Cite the pros and cons of a higher minimum wage, according to basic economic theory: Where will people WANT to work? Why? Where will people FIND work? Why? What will happen to the businesses within Sea Tac? (be sure to look at the geography of Sea Tac) What will happen to prices? On the other hand, what will happen to the economics of people who DO find work in Sea Tac?
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Majority of this limited sized city will want to work in the airport if they are going to receive $15.00 an hour. The pros are the amount of potential employees that the company will attract but the cons are the salaries that they will have to pay incoming and already staffed employees that are making less than the new wage. The question is will they raise the amount of pay for the employees that have worked there prior to this new amount? The only incentive that these people will receive for wanting to work is just to say that they are making $15.00 an hour. I feel that people will actually find more jobs at the places those employees fled from rather than the airport or even outside the city. There are so many employees that the airport can pay, so once those positions are filled people will look elsewhere for employment. The article stated that they would look outside the city of Sea Tac. Businesses in Sea Tac will be forced to move out of location due to the competition that the airport will bring with this new wage. The economic situations that people will face in the city that aren’t employed by the airport are high demands of living from sales tax and pricing in general. They aren’t making as much as others so their income isn’t reliable for survival in the city. This will cause a contractionary fiscal policy without even knowing it.
ReplyDeleteThe people will want to work in the city of SeaTac in an effort to increase their salaries to 15 dollars an hour. People will flock to the town from other areas causing a surplus of workers who won’t be able to find jobs once all positions are filled. The pros of raising the minimum wage is that by increasing workers' take-home pay, families gain financial stability, thus they would spend more helping the economy in the town. The cons of raising the minimum wage will cause business owners to suffer because they would now have to pay their worker so much more money. Some business would not be able to afford the minimum wage causing them to have to lay off many employees. Increasing the minimum wage could have short-term benefits but would lead to long-term losses as businesses cutting employees, raising prices or moving out. Prices would go higher because business will transfer they burden of high minimum wage onto the consumers. If people do not find work in SeaTac the city will be in a worse condition because it would have to support a larger unemployed population.
ReplyDeleteA higher minimum wage would results ion many changes in the market. According to the referendum union leaders a higher minimum wage would pull thousands of struggling families a rowng higher on the economic ladder. On the other hand, opponents says the increasing in minimum wage would have a short term benifits but would lead to long-term looses as or many on businesses adapted by cutting employees and raising prices. Accoding to the basic theory, it state that minimum wage will influence workers to leave their current job that pays higher. A minimum wage of $15 an hourwould be requirefor many businesses in SeaTac, which is more than twice the federal minimum wage. As a result people would want to work in SeaTac, but there will be a limited number of employees that can be employ. Many businesses would've to pay more to their employees, which can be result in the lay-off of many employees. Therfore, prices will go higher, which will be an even greater struggle to thepeople who can't find jobs.
DeleteSome pros of a higher minimum wage is that employees would have more incentives of working more hours so they could support their family and take better care of themselves. Also, the worker's income would be very high. Some cons are that there wouldn't be enough jobs for everybody because businessmen or employers would not want to hire too many people because they would not want to pay that much of money to a lot people, they might risk to go bankrupt. Also, things necessary to live like food, clothes, shelter etc. would go up in price incredibly because if people are making so much per hour they would be able to afford them but it wouldn't be fair to the unemployed ones. Everybody would want to work in the airport because their incentives is to make $15 per hour. People might want to flee Sea Tac due to unemployment.
ReplyDeleteWashington already has the highest minimum wage of $9.19 an hour. Some people are soon going to say that this minimum wage is too low and they will ask for more an hour. Business and labor leaders say the economic and political implications, with local democracy going where state and federal legislators mostly fear to tread, could be equally profound. Some people have to work two jobs just to put food on the table for their family. A SeaTac city council member feared that incentives to start or expand a business in the city itself would be stunted no matter what happened at the airport. Opponents assert that if higher wages have a 30% in food prices, it will mean a lot of people will be eating outside the airport. Travelers accounted for more than two-thirds of airport commerce, and that increasing pay to $15 an hour would inject $54 million into the local economy.
ReplyDeleteAlthough the pros and cons of raising a minum wage can be sometimes balanced, it is not the case in SeaTac city. Raising the minum wage in a city were the residents live below proverty line, can be very confusing. To these people the $15.00 is their only way to ensure their survival, however, they fail to recognize that it may be the factor that will contribute to a higher unemployment rate. The only pro of this high minimum wage would be that people would make enough to provide for theiir families and have some stability. As a result, the economy of the town will flourish because people will have more money to spend.
ReplyDeleteHowever, it won't last long. There atre many cons. People, especially those struggling, from other cities or states will flock to SacTac to work iin the airport. This surplus of workers will cause a shortage of work. The airport, instead of hiring 50 peopple will hire 20 and cut the hours.Many people will not pruchase their services because they will raise the cost of books or anything else they sell at the Sac-Tac airport. Bussineses will also suffer. They too will be forced to hire less people and cut the hours of their workers, or even shutt down. “If they have to pay their workers more, they would certainly pass that on to us,” said the spokesman, Paul McElroy.This altogether can cause a shortage of production in the market. The cost of products will raise and people would be in the same situation or worse off than they were before raising the minimum wage.
As the article stated "When you combine all these elements together, we believe the initiative would be incredibly hostile to employment at Sea-Tac,” Only a few people will benefit from this minimum wage. Of course they are going to leave their low wage jobs to seek employment at the airport. When that happen, small businesses will either hire others, lay-off majority of their workeers, or shut down. So all these people who left their jobs will be left unemployed, hurting the economy as a whole.
The pros and cons of a higher minimum wage, according to basic ecoomy would be greater income for employees but less employees. People will want to work where the minimum wage is higer because they want more money. I mean who doesn't. People will find work at low income jobs, under the table pay possibly. More employees will go jobless because business will not be able to pay everyone with the high minimum wage. The businesses within Sea Tac will either go out of business or have less employees. The prices will go up because they need to earn enough oney to pay the employees and also make a profit. The economics if people that do find work will be they will be able to buy things they couldn't before adding money to our economy. They will be able to live comfortably and still spend money on things they want. Which helps our economy greatly, spending is good.
ReplyDeleteMany people would want to work in SeaTac just in order to get a higher salary of about 15 dollars an hour. Thousands of people will flock to the town from places across the country with lower wages, causing a surplus of workers who won’t be able to find jobs once all of the available positions are filled. There are many pros from raising the minimum wage, such as increasing workers' take-home pay and the families gain financial stability. Thus, they would spend more money which helps the economy of the town. But with the pros there also cons, such as causing business owners to suffer because they would now have to pay their worker so much more money. Some business would not even be able to afford the minimum wage causing them to have to lay off many employees. Although increasing the minimum wage seems very beneficial, it will only have short-term benefits but would lead to long-term losses as businesses cutting employees, raising prices or moving out. Prices would go higher because business will transfer they burden of high minimum wage onto the consumers. If people do not find work in SeaTac the city will be in a worse condition because it would have to support a larger unemployed population.
ReplyDeleteWith a higher minimum wage comes fewer jobs but more money in the pockets of those with them. People will always want to work in places with more money to offer because it means they themselves will have more money. they are more likely to find work in places with lower wages because those businesses will have more jobs to offer to a cheaper workforce. the businesses in Sea Tac will have fewer employees. Prices will increase because the businesses need more money to pay their employees and make a profit. The people who do find work will find themselves happily with more money in their pockets because of the high wages.
ReplyDeletePeople will want to work at places like the airport so they can get $15.00 an hour. They will find work in places that pay much less, since there will be fewer jobs available if each job pays $15 an hour. Also, more people will come to this town to get a higher-paying job. The supply of workers will be increased while the demand for workers will be decreased. When people realize they can’t find high-paying jobs in Sea Tac, they will look outside of Sea Tac, causing businesses in this town to fail and relocate. Prices will most likely rise since businesses will pass on taxes from raising the minimum wage to customers.
ReplyDeleteThere are pros and cons to having a higher minimum wage. Washington already has the highest rate of minimum wage, which is 9.19 an hour, and they are trying to raise it to 15$ per hour. What they don't realize is the rise of unemployment if they do end up raising their wage. When they do raise the wages, people from across the country will move to Washington just so they can have a higher paying job. The pros of having a higher wage is being paid better, and having a surplus of workers from across the nation.
ReplyDeleteHowever, there are more cons than pros. If they raise it to 15 dollars per hour, that means that there will be less workers, and the prices of food. souvenirs and misc. items in the airport will increase. “If you’re going to have a 30 percent increase in food prices, it will mean a lot of people will eat outside the airport,” said Bob Donegan, the president of Ivar’s, a seafood company based in Seattle with a restaurant at the airport. “That’s not a good thing for the airport or its workers.” Because these people will eat outside of the airport, the airport won't be benefiting much from the increase of food.
Even if they get paid higher, there will always be an increase in sales tax and other taxes/products. So, being paid more won't really benefit you much if you have to pay more for something else. Only a few people will benefit from this minimum wage. That's if you are really lucky.
If Sea Tac raises its minimum wage then people will have more money to spend and provide for their families. On the negative side, the increase in money will cause an inflation, it can cause companies to fire more people, and cause businesses to move from the area. People from all over the state will rush into the city hoping for a job at Sea Tac but only a fraction of them will get hired. Those who get hired will be better off working there because of the increase in income but those who don't will live in poverty in the city.
ReplyDeleteIf Sea Tac raises its minimum wage to $15.00 per hour, then many people will go to Sea Tac seeking work. This will create a surplus of workers and many people are going to be unable to find work. Sea-Tac(the airport) will fill up first on security and other jobs, but after that, work is scarce and many people will be unable to find any work at all and be forced to leave. Furthermore, for people who do stay, they will experience highly inflated goods and services to match the increase in pay. Many workers will be forced to do the work of multiple people as businesses lower staff in order to make up for the loss in profits.
ReplyDeletePeople will be attracted to work at SeaTac with its minimum wage of 15 dollars an hour. Workers will drop their average minimum wage jobs and head towards the area, which will lead to a surplus of workers for a limited number of jobs. The pros of the raise is that the people who are working at SeaTac will be able to have an easier time providing for their family. The economy will thrive because people will be financially stable and that means that after spending money for their necessities, they will have extra money that can be spent to help local businesses in the area. But, the cons will be more prominent for businesses rather than the workers in SeaTac. With the fact that they are shelling out 15 dollars an hour per worker, they will only hire a very limited amount of people because it will cost them more. Also, the prices on items will increase because it will take more to receive a profit because of how much money the minimum is costing them. If people don’t want to spend large amounts of money on items that were once at average price and only rose because of the minimum wage was, then the raise was meant for nothing and will hurt them in more ways than they could ever realize.
ReplyDeleteA higher minimum wage could lead to long-term losses as businesses adapt by cutting employees, moving out or raising prices, on the other hand it could inject about $54 million into the local economy. People will eventually come to this town to get a higher wage, but unfortunately you have to be more skilled than usual for the job that they are applying to. At SeaTac, the wage will be higher but that will also increase the prices for the customers on the airplanes. That will eventually drive customers away because they can find cheaper alternatives elsewhere.
ReplyDeleteThe pros are the amount of potential employees that the company will attract but the cons are the salaries that they will have to pay incoming and already staffed employees that are making less than the new wage. Sea Tac raises its minimum wage to $15.00 per hour, then many people will go to Sea Tac seeking work. that will create a surplus. For people who do stay, they will experience highly inflated goods and services to match the increase in pay. When people realize they can’t find high-paying jobs in Sea Tac, they will look outside of Sea Tac, causing businesses in this town to fail and relocate.
ReplyDeletePeople will want to work places like the Sea-Tac airport that have a minimum wage of $15.00. This will allow them to come home with a bigger check and will highly help in distressful times like these. Finding work will be the tricky part, since the minimum wage the demand for labor will decrease dramatically. Business will not take in much employees and some may even lay-off many. The employees that do stay will have to work twice as hard since employers will not want to pay for extra workers. The sad fact is that many won’t find jobs at all. The unemployment rate will increase because employers will refuse to pay such high wages. The business within Sea-Tac will increase the prices on their products. This will cause travelers to stop buying or eating in the airport and may cause a huge problem. Business will then be face with foreclosure or they will choose to move to another airport where prosperity is more attainable. The people that do find work in Sea-Tac, as previously stated before, will have to work the job of two. Hours will be longer and the work will be more stressful, which can counteract the benefits of having a higher wage. Raising the minimum wage may bring forth short-term benefits, however in the long run it can actually cause more damage than good to our economy.
ReplyDeleteRaising the minimum wage to $15 in the Sea-Tac airport would cause a surplus of workers who would want to work there. The business can either expand or fall under these conditions. Having many workers in one company can mean a better quality of products and services. But the fact that you will have to pay these workers more an hour means cuts will have to made to keep funding everyone and everything in the airport. So, are the employers going to pay their employees more money an hour? Many workers will only want to come to Sea-Tac to have a bigger paycheck. If they don't receive the minimum wage that they expected, many workers might quit. That would lead to an opposite end result of what was expected in raising the minimum wage. Instead of a surplus of workers, there would be a shortage of workers. Sea-Tac will have to decide what cuts and where the cuts will have to be made in order to support this new minimum wage of $15 an hour. If the business does thrive with this minimum wage, other businesses around Sea-Tac will be forced to compete with the airport for employees. Now they will want to raise their minimum wage in order to expand their own businesses. Nobody will want to work for less than $15 an hour because of their high expectations that this new minimum wage has placed in their heads. All these changes, as we know it, may lead to a contractionary fiscal policy.
ReplyDeleteThe raise in the minimum wage would help a lot of families in that community not struggle as much and it would really help the middle classes that is slowly disappearing, people won't have to work 2 to 3 jobs they won't have to worry about where the money will be coming from when it comes to paying the bills, but the down side the the raise of the wages is that a lot of business will have to cut down on workers because they don't want to spend all there money on their workers so, you may think you be making that 15 dollars an hour but then your boss tells you that you are getting fired because they can't afford all these workers and have to lay off some workers. You will have a higher demand and a lower supply. It is also a price floor which will cause a shortage of jobs in that area
ReplyDeleteRaising minimum wage would be beneficial to many low income families that are struggling and in need of higher paying job. Also the middle class that's slowly disappearing in our society. With the higher minimum wage, people wouldn't have to sustain 2-3 jobs to help support there families and creating a lot of stress on themselves. The down side to this minimum wage boost for jobs would be possible inflation of prices and less businesses wanting to hire new people onto there workforce. This in turn create a high demand for jobs and low supply of jobs available due to minimum wage increase. a price floor will develop due to this minimum wage raise, creating a shortage; limited supply of jobs out in this area with minimum wage raise. Even causing people to have to relocate to areas with jobs available.
ReplyDeleteWell a pro of the raising minimum wage is that the lower class and all other classes will be paid more by their businesses and wont struggle as much as now. But there is a downside to all of this, the minimum wage raising will cause a shortage and many employees will be cut off or laid off of work because they wont have enough money to pay the minimum wage, whatever it is to all of the employees.
ReplyDeleteSome positives of a higher wage is that workers would have more of a drive to work more hours so they can have more stuff and take better care of there familes. The worker's income would be very high. Some negatives are that there wont be enough jobs for everybody because employers would not want to hire a vast amount of people because they would not want to shell out alot of money. They can risk going bankrupts or even shutting down. And it will cause an inflation causing things in that are to be more expensive
ReplyDeleteRaising the minimum wage to around $15 will greatly improve the economy and help out the dying middle class. Families who struggle to pay bills, work late night shifts, or at least two to three jobs, will see this notion as a blessing. Not only that, but this would also help those with many skills find a better paying job. What they don't realize is that the dollar bill will continue to lose its worth and value. Prices will go up, along with unemployment rates. Business will see this move as a threat, refusing to pay works, and laying off many. Thus creating even more problems with business and supplies.
ReplyDeleteMost people would find jobs in places that are heavily populated with workers, for example the articles states that people would most likely want to work in the busy airports, or other places like walmart. Note, "Opponents argue that increasing the minimum wage would have short-term benefits but would lead to long-term losses as businesses adapted by cutting employees, raising prices or moving out.", the prices in sea-tac will need to go up due to the losses they will take from the minimum wage going up.
The pros for having the $15 minimum wage, is that it will have people from different part of the county wanting to get a job in the area. This will then create a surplus. However there will be more cons, like the rise of unemployment, the companies will not hire any more employees, and even layoff some other people. People moving to Washington, will then realize that the increase in minimum wage, will also increase the basic living. These job hunters will want to work at the airport. Sea Tac would have expect a surplus of workers, but if the people flock the town from different parts of the country, all of the people will not get hired. Many employers will not pay the minimum wage to their workers, and end up with a shortage instead. Since, the minimum wage rises, so will the taxes. People will then eat out and not buy food from the airport. This will not only affect the food but the other merchandise business within the airport as well. It will not have a positive outlook at all.
ReplyDeleteThe pros and cons for having higher minimum wage are pretty obvious. Having a $15 minimum wage will cause people from all over the country to move to the area with the higher wage, it'll create less job opportunities. Since people are getting paid so much these companies are going to keep their employees to a minimum, which means a lot of job cuts. Also, those who do have jobs and are getting paid the $15 an hour will be doing twice as much work since there are so many job cuts. The pros of the higher minimum wages are of course more money for those who have jobs. Those who are employed won't need to be working more than one job, but since they are getting more money, money may lose its value causing inflation. Businesses are going to eventually go bankrupt if this does happen, so as good as $15 an hour sounds, it really isn't helping anyone but those with jobs, it's going to be hurting more people than it's helping.
ReplyDeleteThe pros of higher minimum wage would help thousands of struggling families and raise pay for many workers, which is good. the cons of higher minimum wage is the cutting of employees, moving out, or raising prices. because the businesses in SeaTac would raise prices it wont be good for neither the business or the employees, because people would not want to spend that much money, and that would lead to the businesses falling. many people would want to work at SeaTac because of the minimum wage being $15.00 but because of the high minimum wage they won't be as lucky to find a job because businesses won't want to pay that much money to many employees and they might even cut down their employees.
ReplyDeleteI think it would be a great idea to raise the minimum wage to 15$. It would help struggling families pull through. it would give paid sick days to many of those workers for the first time. in other terms, it could also have short-term benefits but would lead to long-term losses as businesses adapted by cutting employees, raising prices or moving out. More people will want to work in Seatac considering they will be receiving a higher minimum wage. Personally i think it would be more difficult getting a job like that because they would most likely either be cutting people off or going out of business because they wont be able to pay all the employees. If you were to find work in Seatac then you'd be lucky. it would depend what kind of job you'd get cause you could have a job minimum wage 15$ an hour, but be getting really low hours. so it wouldnt make a difference really.
ReplyDeleteRaising the minimum wage to $15 will be would be bad for the area that it is happening in. One with higher minimum wage employers will find that less people can do the same job as more people. Secondly if people were desperate enough to move to that location there is the risk of having a surplus of workers which could also lead to a homeless population increase. We know that minimum wage only works when it is higher then market, but it can't be to high or it will lose it's effectiveness. I feel that if it were made $15 that the area would only benefit in the future when it has adjusted to it. That may not even happen though it could just not adjust at all. I have to say if one is going to change the minimum wage, it should be minimal.
ReplyDeleteMost of the people in this city would want to work in the airport to receive 15 dollars an hour. There are pros and cons in this particular case. A pro or positive impact would be the employees that the companies will drive in. The con or negative impact will be the "old" employees making less than the new wage. Even though it seems like people would find more jobs at the cities, it is more reasonable to say that they would more jobs from where they came in from. According to the article they would look outside the city of Sea Tac and business would be forced to leave because of competitive reasons. The unemployed people in the city would most likely not survive in the city because they aren't making as much as money/income as the others.
ReplyDeleteIn addition, increasing min ages have mostly only short term benefits. Soon it will start to go downhill, for instance employees will be laid off and prices will be raised (inflation can happen). If people stay unemployed in SeaTac the city will become worse because it would have to be stuck with an unemployed population. But the people who do find work will be more satisfied because they will have more money to spend.
Majority of this limited sized city will want to work in the airport if they are going to receive $15.00 an hour. The pros are the amount of potential employees that the company will attract but the cons are the salaries that they will have to pay incoming and already staffed employees that are making less than the new wage.Also, those who do have jobs and are getting paid the $15 an hour will be doing twice as much work since there are so many job cuts. The pros of the higher minimum wages are of course more money for those who have jobs. Those who are employed won't need to be working more than one job, but since they are getting more money, money may lose its value causing inflation. Businesses are going to eventually go bankrupt if this does happen, so as good as $15 an hour sounds, it really isn't helping anyone but those with jobs, it's going to be hurting more people than it's helping.
ReplyDeleteI think the pros for raisin min wage is great, it will obviously help thousands of families to get more money and live a better life. The people with these kinds of job will only have to work one job instead of two or three job just to pay bills and have nothing left over. But of course everything can't be perfect, the more money people make the higher things will get and no change will occur, it will cause inflation. Most of the people in SeaTac will want to work in an airport to get 15 dollars an hour. Which will cause many new employees to come in and the older employees will receive a lesser pay, because of it. Business will start falling down and closing down if it doesn't happen. In my opinion it's not helping anyone.
ReplyDeleteThe people will want to work in the city of SeaTac in an effort to increase their salaries to 15 dollars an hour. There are pros and cons in this particular case. The pros of higher minimum wage would help thousands of struggling families and raise pay for many workers, which is good. it would give paid sick days to many of those workers for the first time. in other terms, it could also have short-term benefits but would lead to long-term losses as businesses adapted by cutting employees, raising prices or moving out. The con or negative impact will be the "old" employees making less than the new wage. Even though it seems like people would find more jobs at the cities, it is more reasonable to say that they would more jobs from where they came in from. Businesses are going to eventually go bankrupt if this does happen, so as good as $15 an hour sounds, it really isn't helping anyone but those with jobs, it's going to be hurting more people than it's helping.
ReplyDeleteIf Sea Tac raises its minimum wage to $15.00 per hour, then many a large majority of the population in Washington state will want to work for "sea-tac". This will cause the demand for jobs to skyrocket, but not everyone will get a job. In this system, the high demand for jobs will cause people to become unruly. Everyone is going to find a way to eat. In conclusion, the individuals who do stay, they (the people) will experience highly inflated goods and services to match the increase in pay. Many workers will be forced to do work overtime, and business owners will have to lay off employees to make up for the loss of profit due to the inflation of good and services. This method is not smart.
ReplyDeleteThe pros of SeaTac possibly raising it's minimum wage is that more people will be able to provide for their families. With higher wages they'll be able to buy more food and make their payments. It also seems to attract higher-skilled workers that will help business. The cons of the higher minimum wage is that it'll take away the incentive for entrepreneurs to start a business in SeaTac. Also for the businesses that are already in the city, will raise there prices to something insane. The businesses will start to lose money and either go out of business or leave the city. Everyone will move to SeaTac to find a job but businesses rather not hire anybody else. People will have better luck finding a job outside of SeaTac.
ReplyDeleteThe majority of the people will want to work at Sea Tac because of the increased minimum wage of $15 an hour. While the increased wage does seem nice, it really isn't what it seems to be. The increased wages will cause inflation causing prices to skyrocket and the $15 an hour will still be equivalent to the 9.19 that it was before. The prices will increase proportionally and what could have been bought for 9.19 before will now be bought for 15. Now, people will still find work at Sea Tac however not all the people that desire a job there will get one. Most people will find jobs at places where people quit to find jobs at Sea Tac. The businesses within Sea Tac will not want to hire and might even lay some people off because the increased wages mean less earnings for their company.
ReplyDeleteThe pros of raising the minimum wage are the the lower income people can better support themselves. The cons are that people will move to that area to work and be out of luck due to the limited number of jobs in the area. People will want to work in that area because of the wage but people will end up moving and working in different areas probably outside the city due to job shortages. the increase in wage will cause inflation. people who are able to work in the area will be way better off.
ReplyDeleteThere are many economic pros and cons of raising the minimum wage in this specific city in Washington. The pros are that those individuals who are working those jobs will have more money to spend, there will be more people willing to work those minimum wage jobs. Cons of raising the minimum wage is that there might be a surplus of workers,increased inflation and cost of living, and perhaps even force minimum wage employers to lay employees off. In this case of increased wages I believe that it is not a wise economic choice to increase the minimum wage in this case.
ReplyDelete