Mar
24
Blog post #9-Class 16
March 24, 2015 | Leave a Comment
It is scary how much the income inequality gap is growing everyday. The New York Times article, however, shows that the unemployment is steadily decreasing over the past several months. Whereas, unemployment has remained steady. I believe that many of Obama’s disability programs and ObamaCare helped facilitate this change. These types of things take time, and also money from the government. People don’t realize this but in order for change to happen, one must be patient. Long term goals and objectives never have a shortcut way to the solution.
The Cepr article was probably my favorite article out of the three. More job creation, and thus increasing minimum wage would be an excellent way to keep the income inequality gap from increasing even more. Although, this choice comes with its own consequences.
Last session, an article mentioned the fact that with increasing minimum wage, also comes with increasing everything else. For example, if minimum wage increases in McDonald’s, the owner would have to increase costs of its products in order to have a revenue and profit. The owner would also have to cut corners and costs whenever and wherever possible.
However, with increasing prices on normally affordable goods, comes increasing prices of other goods. I feel that once the price of one good increases, so does the price of another good and another. In other words, price increases happen like a domino effect. Once minimum wage increases, so does everything else. Things will be less affordable, causing more money for goods, leaving more or less money in the consumer’s pocket for the same product.
I would like to see minimum wage increase, but I am scared for what will happen next. Hopefully, everything turns out for the better and nothing but good change will happen. I feel that $9 for minimum wage would be a step up compared to the $7.25 or so a few years ago. However, I am scared for the effect that will happen on other essential products, but still hopeful.
