This particular article is about the minimum wage hike plan by the State of Illinois. The article simply relays the views of various Illinois constituents regarding the planned increase in minimum wage to $15 by the year 2022 (Elejalde-Ruiz, 2017). From this article, it is evident that there are two sides to this debate. The debate pitches low-income workers on one side against the business owners on the other one. The low-income such as Moses are in full support of this planned minimum wage hike. However, small business owners such as Ed Schubert are in total opposition to this planned minimum wage hike. It is important to note that while the small business owners feel that increasing the minimum wage would lead to a huge rise in the cost of labor; workers argue that it is important to offer employees a living wage considering the high inflation in the country.
The main economic idea contained in this particular article is increasing the minimum wage for the low-income workers. In the story, the Illinois legislators have a plan of gradually raising the minimum wage with a target of $15 to be achieved by the year 2022. The model for the planned minimum wage hike in Illinois is comprised of examples from California, New York and Washington that have already implemented the same economic policy. This specific economic idea plays a major role in the whole of the story by serving as the issue of contention between the businesses and workers. Throughout the whole story, this economic idea is the main subject matter with the views given by the people interviewed being based on it. There are those who support it and others who are against it. The story revolves around its impact when implemented. The Business owners fear the consequences of enforcing this economic idea on their businesses. On the other hand, workers who are lowly paid rue the benefits that such a fiscal policy will have on their lifestyles. Implementation of this particular economic idea, which is increasing the minimum wage in Illinois, will certainly enhance the disposable incomes of the lowly paid workers. Their standards of living will improve significantly. However, businesses will have to contend with higher costs of labor and lower profit margins.
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My thought about the events in this particular story is that increasing the minimum wage in Illinois to $15 is a good idea that must be pursued to its logical implementation. The main reason for supporting the plan of Illinois legislators in hiking the minimum wage is that many lowly paid citizens of this State are now forced to grapple with an overtly high cost of living. The current income they get is not sufficient to provide them with the most basic needs in homes. It is important to note that the rate of inflation has always been on the rise ( Neumark, Salas & Wascher, 2014) . This rise in inflation rate within the economy relative to a constant minimum wage has left many low income households with an ever reducing disposable earning. To remedy this situation, it is important that the minimum wage be increased proportionately to the level of inflation rate so that lives of people can be meaningful ( Neumark, Salas & Wascher, 2014) . I believe that with increased minimum wage, the demand for goods from these small businesses will increase hence lead to higher profits.
Christians would react to this issue by focusing on the welfare of people. For Christians, the option that gives optimal social welfare to the majority would be the right thing to do. Therefore, they would support minimum wage increase. However, economists focus on the issue of the overall economic benefit in terms money. The economist would consider the level of opportunity cost of taking a given option and leaving the other. Therefore, increase in minimum wage would be chosen because it creates an economic win-win situation.
References
Elejalde-Ruiz, A. (2017). “ Stakes are high for workers, businesses as Illinois considers minimum wage hike.” Chicago Tribune . Available at http://www.chicagotribune.com/business/ct-illinois-minimum-wage-hike-0416-biz-20170414-story.html.
Neumark, D., Salas, J. I., & Wascher, W. (2014). Revisiting the Minimum Wage—Employment Debate: Throwing Out the Baby with the Bathwater? ILR Review , 67 (3_suppl), 608-648.
