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A letter to the editor in the Wall Street Journal - Essay Example

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The recent article entitled “Weak Wages Pose Threat to Liftoff for Economy”; dated 31st May (page 1) had tackled a very critical aspect of the economy that has usually been ignored by the key industrial players. The factor of discussion is the minimum wage bill. It is quiet…
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A letter to the editor in the Wall Street Journal
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A letter to the editor in the Wall Street Journal

Download file to see previous pages... Critics have it that the increment can lead to the companies laying off some workers or even resort to the use of machines ,so as to counteract the increased labor cost. Production and manufacturing companies may also increase the prices of their commodities; a step that might lead to a gradual decrease in demand of the goods. These facts sound detrimental to the ears that choose to listen.
However, the profits of raising wages supersede the conceptual losses to the economy of any nation in the world. According to a latest report tabled by the Congressional Budget Office, pay raise from $ 10.10 per hour will definitely give the working population much money to spend on the purchases and thus elevating the economy. Higher wages also attract more skilled personnel for a company hence increasing the productivity. Besides, higher earnings give the workers the power and confidence to buy the products from the very company in which they work. This is another hidden way of increasing the ...Download file to see next pagesRead More
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