fix HW for MBA Master

The decision that was recently made by the wall mart company to give more than a million of its employee an increase in wages was followed by an aggressive campaigns. There has a national push which had called for an increment in wages to all the workers. However the decision to raise the minimum wage still depends on the company’s decision. These move has actually been received differently by the critics. Some argue that it will lead to increase in inequality. They insist that these increase will lead to unemployment and weaken the economy of the US.

There are a lot of fallacies that are have been associated with these move on the minimum wage. Such as changes in behaviors, secondly companies will be forced to device ways that will reduce the costs of operations. Additionally these factors have distorted the economic principles. Additional these move will lead reduce employment opportunities.

Renown’s scholars such as David Autor and Alan manning argued that increasing the minimum wage will lead to inequality especially to those low income earners. To on theses fact my personal finding reveals that increase in these wages will have a negative effect on workers and employment opportunities. Companies will continue replacing human labor with machines for instance the McDonald’s company.

Contrary to this issue of iminium wages increment various economists such as John Cochrane feel that the government needs to address the short term wages as companies address the structural problems. The government should strive to provide additional skills to workers. This will in turn lead to increase in wages due to creativity that will arise among workers. Getting more people to work will lead to increment in minimum wage as long as the barriers and challenges that are often in the labor market have been removed.