Economics Work Issues
- The majority of developed nations has introduced a minimum hourly wage, which employers must pay workers. Paying below this level is a legal offense, punishable by fines and jail time. In America, the minimum wage has two levels, one that the federal government sets and another that individual states set for themselves. Most states observe the federal level, but some states also pay more and some less than this level. The idea behind the minimum wage was first introduced after the Great Depression as a way of stimulating economic growth and protecting workers' rights.
- Although the term "outsourcing" technically means contracting with another company to do a particular function, most people when they hear that word, immediately think of the practice of sending jobs overseas. For example, in America, employers have moved manufacturing jobs to India, China and Mexico. The main reason is the cheap labor that developing countries provide. As a result, antiminimum wage groups claim outsourcing encourages companies to send their work to other countries instead of hiring locally.
- Economists use the term "economies of scales" to refer to the economic principle that as the volume of production increases, the cost of producing each unit decreases. Companies look to achieve that in the long run as a way of saving money. In basic terms, this involves making the whole process of the business more efficient. This could entail merging departments or buying up other companies. The major problem here is once a company becomes more efficient, job losses usually follow, because the company needs fewer people to do the work.
- The unemployment benefits system is a safety net for the unemployed. Payments are designed to support people while they are looking for work. However, the major complaint about the system is that it costs the working taxpayer a lot of money every year. Some people feel that some of those unemployed actually can work but are not doing enough to find work, or may not want to work at all, thus abusing the system altogether.
- The idea behind flexible working arrangements is that people no longer have to work a traditional 9 to 5, or 8 to 6, but could come in earlier or leave later, so they could pick their children up from work. This flexible system also covers parental leave, which allows mothers time off during and after pregnancy to spend time with their child, without the risk of being fired.
- The trade union system has come under fire in almost every country. Many unions were set up to protect workers and to campaign for better wages and working conditions. People credit trade unions with establishing many things that workers frequently take for granted, such as job protection, health and safety and fair labor practices. However, now many are seeing the union's role as less effective due to accusations of corruption and unnecessary strikes.
Minimum Wage
Outsourcing
Economies of Scale
Unemployment Benefits
Flexible Working
Trade Unions
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