Economy In Flux
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by AidenAstrup
To those who have been watching the market place as close as I have in coordination with the Human Recourses, you can understand what I am talking about. To those who don't, I hope you will join me in my topic of interest.
On Wednesday December 3rd, the price of a Q1 Gift in America soared from the average price of 2.20 USD to 3.85 USD. A large increase that happened overnight. This was affected and effects one major area of the economy: wages. For the past few weeks as you can see in a few of my earlier posts, wages have been increasing almost all over the board. A skill 0 worker can expect somewhere around 2.5 USD and maybe even 3 USD for their first job in manufacturing. These high wages contrasted with prices that were about the same if not less than wages. Within a few days of making continued losses, companies were forced to shoot prices up - more than was neccesary, to pull back from the days where they actually LOST money. The companies that were doing well off, rose their prices, because...why not? Consumers will still buy the product, not if your CHEAP, but if your the cheapEST. These companies were now making more money than they were before, and could now - raise wages.
I am a firm believer that economies go through periods of turmoil, adjust, stay stable for a period of time, go into turmoil, etc. Economies, however, do not adjust by themselves. Congress and and the rest of America needs to plan its next moves very carefully. Most importantly with taxes. Lower taxes don't always fix problems. Sometimes, higher taxes on companies will force them to change prices, higher imports and lower VAT's may also help some industries.
The minimum wage, is starting to slowly come to a time of neccesary change. If prices continue to rise, congress may have to think about raising the minimum wage by 1 USD maximum (.5 USD preferred) in order to stabilize the current situation. I am getting mass amounts of emails from people who want to participate in the Wellness Exchange program, but can not afford gifts. This problem needs to be fixed, and it needs to be dealt with urgency. To wait is to aid the crash of the economy. Either your part of the cure, or your part of the disease.
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Comments
How come economies don't adjust by themselves? Are you suggesting there are no supply and demand dynamics in the market?
Minimum Wages are a true definition of DOUBLE EDGED SWORD!!!
Because when wages are raised, what is the next thing to be raised??? Anyone know the answer? PRICES!!! Companies need to compensate for their OVERHEAD!!!
I understand that companies may be gouging the customers, that is because nothing is ever thought through for the LONG TERM!!! Every one only looks at TODAY and this MOMENT, if people would sit down and do nothing the markets may finally calm down. If the government wants to do something they should try to find a way to make a PRICE MINIMUM, that makes more sense!!!
I agree that minimum wages won't solve the problem. Not only will they increase prices, they will also push out some of the low-skilled workers (who are honestly worth less than the minimum wage) into unemployment. How will a wage of zero help their standard of living?
The only just system is one where the unemployed are free to compete with the employed in the labour market.
Shouldn't employers be able to decide how much an employee is worth? And shouldn't an employee be able to decide who they work for? Minimum wage screws up market dynamics. Don't artifically inflate wages - let employers decide what someone is worth.