Prime companies, unlike what most many of us believe, are responsible for underpaying workers even as they manage superb profits and healthy balance sheets. A report by the National Employment Law Project has shown that about two-thirds of all American low-wage earners are employees of companies that have more than 100 employees.
Such companies include McDonald’s and Wal-Mart. In today’s economy, some corporations have discovered that employees are willing to work not only for lesser pay but little benefits if any since the economy is not attractive. More than 90 percent of the top 50 largest employers of these workers were profitable in the last economic year, and more than half of these companies are now enjoying even greater profits than they did before the recession hit, which is a suggestion that they could stomach a raise in the employees’ minimum wages.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- The Minimum Wage
- The Effects of Low Wages
- Effects of Increasing Wages by Large Corporations
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper aims to examine the effects of low wages paid by major corporations on the economy and analyze the potential impacts of raising these wages. It explores the current minimum wage landscape, the consequences of inadequate compensation for workers, and the potential economic benefits of increased wages for low-income earners.
- The impact of low wages on the micro and macro-economic environment.
- The relationship between minimum wage and economic prosperity.
- The effects of low wages on worker morale and productivity.
- The potential economic benefits of raising wages for low-income earners.
- The impact of increased wages on corporate profits and employment.
Zusammenfassung der Kapitel (Chapter Summaries)
Introduction: The introduction sets the stage by highlighting the surprising reality that many large, profitable corporations pay low wages to a substantial portion of their workforce. It uses statistics to demonstrate the prevalence of low-wage employment within major companies and introduces the central question: what are the economic consequences of low wages paid by large corporations, and how would raising these wages impact the economy? The introduction emphasizes the persistence of the low federal minimum wage and frames the paper's objective as investigating these crucial economic relationships.
The Minimum Wage: This chapter defines minimum wage as the legally mandated lowest compensation an employer can pay a worker. It traces the historical development of minimum wage laws, highlighting variations across countries and the existence of both formal and informal minimum wage systems. The chapter also distinguishes between the formal minimum wage established by law and informal minimum wage standards sometimes observed in practice. It implicitly sets the context for the argument by demonstrating the long history and widespread acceptance of minimum wage as a concept, before proceeding into its effects.
The Effects of Low Wages: This chapter delves into the negative consequences of low wages on both micro and macroeconomic levels. It argues that low wages hinder economic prosperity by reducing purchasing power and limiting the market access of companies offering services or goods that are unaffordable to low-wage earners. The chapter illustrates the problem with Figure A, which shows the fluctuating real value of the minimum wage. It also discusses the impact of low wages on worker morale, productivity, government tax revenue, and access to healthcare. The chapter further connects low wages to increased job turnover and rising costs of social support services, emphasizing the broad and interconnected consequences.
Effects of Increasing Wages by Large Corporations: This chapter examines the potential effects of a significant wage increase for low-income workers. It challenges initial concerns about the high cost of such an increase by comparing it to the overall private sector wage bill, arguing that it represents a relatively small percentage increase. The chapter further suggests that increased wages would lead to greater consumer spending, stimulating economic growth and offsetting any potential negative impact on corporate profits. It emphasizes the positive multiplier effect of increased worker spending and concludes that the potential economic gains outweigh the apparent costs, leading to increased employment across diverse sectors.
Schlüsselwörter (Keywords)
Minimum wage, low wages, corporate profits, economic growth, worker morale, purchasing power, employment, social support, economic inequality, macroeconomic impact, microeconomic impact, wage increase, consumer spending, multiplier effect.
FAQ: Comprehensive Language Preview - Effects of Low Wages Paid by Large Corporations
What is the main topic of this paper?
This paper examines the effects of low wages paid by major corporations on the economy and analyzes the potential impacts of raising these wages. It explores the current minimum wage landscape, the consequences of inadequate compensation for workers, and the potential economic benefits of increased wages for low-income earners.
What are the key themes explored in the paper?
Key themes include the impact of low wages on micro and macro-economic environments, the relationship between minimum wage and economic prosperity, the effects of low wages on worker morale and productivity, the potential economic benefits of raising wages for low-income earners, and the impact of increased wages on corporate profits and employment.
What does the paper say about the minimum wage?
The paper defines minimum wage, traces its historical development, highlighting variations across countries and the existence of both formal and informal systems. It emphasizes the long history and widespread acceptance of minimum wage as a concept and sets the context for analyzing its effects.
What are the negative effects of low wages discussed in the paper?
The paper argues that low wages hinder economic prosperity by reducing purchasing power and limiting market access. It discusses the impact on worker morale, productivity, government tax revenue, access to healthcare, increased job turnover, and rising costs of social support services.
What are the potential positive effects of raising wages for low-income workers?
The paper suggests that increased wages would lead to greater consumer spending, stimulating economic growth and potentially offsetting any negative impact on corporate profits. It emphasizes the positive multiplier effect of increased worker spending and concludes that the potential economic gains outweigh the apparent costs, potentially leading to increased employment.
What is the structure of the paper?
The paper includes an introduction, chapters on the minimum wage, the effects of low wages, and the effects of increasing wages by large corporations. It also provides a table of contents, objectives and key themes, chapter summaries, and keywords.
What are some key words associated with this paper?
Keywords include: Minimum wage, low wages, corporate profits, economic growth, worker morale, purchasing power, employment, social support, economic inequality, macroeconomic impact, microeconomic impact, wage increase, consumer spending, and multiplier effect.
What is the overall conclusion of the paper?
The paper suggests that while concerns exist about the cost of significantly increasing wages for low-income workers, the potential economic benefits, such as increased consumer spending and a positive multiplier effect, may outweigh the costs, potentially resulting in greater economic prosperity and increased employment.
- Arbeit zitieren
- Oliver Tumbo (Autor:in), 2017, The effects of major corporations paying low wages, München, GRIN Verlag, https://www.grin.com/document/428479
