Minimum wage Essay Example for Free

Minimum wage Essay While poverty continues to increase in several areas of the world, economist tries their best to find a way to offer a feasible solution. One of the most common answers that can ordinarily be found in economical debate would be the issue of the establishment of a minimum wage. Setting a minimum wage is a policy tool that ought to increase the income of the working class in a certain community or country. Seemingly this premise gives the minimum wage policy easy to understand. Ideally, an increase in the minimum wage results to an increase in income that is suppose to alleviate low income households into a higher social status. In fact, this policy tool has been commonly used to alleviate poverty levels in the third world countries. Most regions in the Latin America adopted this policy sometime in their past. Nonetheless its positive and negative effects are still subject to careful analysis and thoughtful criticism. This paper would focus on the effect of an increase in minimum wage on different countries primarily between a first world and a third world country. In doing so, the paper would attempt to review the literature presented by Gindling and Terrell (2007) along with the data’s gathered by Powers. From such literature I have gathered the importance or the role of unemployment rate on the changes in poverty level. The several discussions shall be related to the surveys, theoretical models and data’s that are gathered as of June 2007. The econometric analysis that would be use would also be based on the regression that was formerly made by Powers. Literature Review From the different articles that flooded the economic circle, there were several debates that concerned the utility that could be derived with the implementation of minimum wage. The proponents of the positive impacts of an increase of the minimum wage in reducing low income household according to the study made by Gindling and Terrell believes that it would only be effective and limited in the formal sector. Those who compose this â€Å"formal sector† are the employees who receive more than or equal to the minimum wage. Those people that argue against the minimum wage does so under the assumption that the market and economy today is highly affected by a close competition brought about by globalization. In line with this, the current governments would be required to create the most attractive business milieu for the investors. Thus, the government, most especially of the â€Å"developing country† would most likely impose lower minimum wages or might even argue to abolish it (Lee, 2002). In a brief discussion, a minimum wage implies a law that was legislated in order to ensure that worker/s will receive a minimum amount of payment for a certain amount of performance made. This law was created in able to protect the workers, most especially those who low income earners from possible exploitation and abuse from their employers. Most of the low wage earners were composed of unskilled laborers and have mostly received low level of proper education, if any. At the same time, insuring that this type of workers will receive a minimum wage would result to a lower level of poverty. This will be the case since it is standard that upon setting the minimum wage factors such as the daily living standards of a person and the purchasing power are taken into consideration. Such procedures would make a minimum wage law more effective and beneficial for the worker/s. Gindling and Terrell in their study of the situation of the economy of Honduras provided insights regarding the different factors that may affect the family income. The first thing that they believed that one should consider in instituting a minimum wage would be the person/s that the policy will apply. The person/s involved and the labor market in which they belong are important in the considerations since the more competitive a market is, the higher the unemployment rate it will produce. It is important to note because the demand for labor usually determine the number of person that shall be displaced upon the possible increase in the minimum wage. The second factor would be on the possible effect of the minimum wage changes on the workers that are not cover with the implementation of such policy. This is important to note since those people who would lose their job because of the increase in minimum change increases the available supply of labor in the sector that was not covered by minimum change. Such sector includes self-employed individuals or individuals who are underpaid. Factors Affecting Minimum Wage  Another factor that Gindling and Terrell believe to create an impact on the family income is the social status in which the family belongs. The increase in minimum wage is meant to reduce poverty. Nonetheless, the families that might have been affected by the changes in minimum wage might not be included in the families along or under the poverty line. This is an important factor since it would determine if the increase in minimum wage would have an impact on the middle class or the lower class. If the minimum wage increase would affect only or greatly on the middle class, the gap between the middle and the lower class would inevitably widen. The last thing to consider would be the view that a society takes regarding what a minimum wage shall cover. In some cases the minimum wage is based on the worker family’s basic need. In other society the worker’s personal basic needs is the one which is considered. Thus, in effect, it would be relevant to consider the number of the working member in the family or the number/s of bread winner/s. Effects of Minimum Wage The effects of a minimum wage depend upon the household and the family that responds to the requirements of the labor market. A family might be able to benefit in an increase of minimum wage if there are two or more members of that family that are would receive or affected by the increase in minimum wage. Nonetheless, if instead of gaining from the minimum wage increase, some earners in the family was removed from the job resulting from the laying off of workers that company resulted into, to be able to effectively provide other workers with a minimum wage without decreasing the company income. The family would suffer more poverty than they have experienced before. The effects of minimum wage also differ with respect to gender, age and ethnicity. More often than not women due to their high expense, having more leaves and being more prone to illness due to a â€Å"weaker body structure† are more susceptible than man when lay offs occur. Thus, for those families that are single handedly supported by a female, an increase in minimum wage is not actually good news. Also, people who are already approaching their golden age or those who are closing to retirement age are usually subjected to layoffs since they are considered to be less productive than the young ones. Lastly, there are areas were ethnic discrimination is still an issue. Problems with Minimum Wage According to the research made by Gindling and Freeman, the main objective of creating a minimum wage is not to decrease the number of employment; it is actually to equally distribute income to the low wage earners. The cost cutting procedure that usually resulted as an effect of the increase in minimum wage cost the job of the workers more prominently those who are in the bottom ladder of production. Since these people do not have enough skills, experience and education, they would find it very hard to look for a new job. In such case, instead of alleviating poverty, the increase in minimum wage results to an increase in poverty. In the view of Richard Berman, the government upon imposing the law on minimum wage increase imposes such command to the employers on how much they should give. However, the government does not have the authority to command the employers regarding who are the people that should and should not be hired. Such situation is what causes the employers to layoff the less productive workers. It also made them employ less people and employ only those who posses more than enough qualification that would fit for the job and for the wage. The drastic effect that such situation results into is a little bit complicated. First and foremost the amount of available employment would be greatly reduced. With lesser opportunity for those who does not have jobs and with an additional number of unemployed produced from the layoffs, unemployment would greatly increase. In the long run the family of those who are unemployed would suffer lower income and would fall under or stay under the poverty line. Another effect would be on how employers would choose their employees. Since employees cause more, aside from a reduction in the number of employees, as explained above, employers would also tend to increase their qualifications for possible employees. Thus, employers would tend to hire people who are better qualified, that is that they have attained higher level of education and/or skilled. Those who includes in the highly educated employees are usually compose of the younger generations. Also, one cannot expect someone below the poverty line to get the best education available since it is most like that higher education is expensive. The skilled laborers on the other hand are only a few and would more or less attain some degree of education. This leaves the adult unskilled worker/s less preferable for a usual low wage job. With this in mind, one could assume that the probability of unskilled adults to work on jobs that would be affected by the increase in minimum wage, very low. It is more likely that would seek and settle to an underpaid job to be able to somehow support themselves and their family or they might not work at all. What may follow is a further increase in poverty, rather than a reduction. Another possible scenario involves chances of higher prices in commodities. As a usual flow in economics, the expenses that were received by the company would be passing on to their consumers in able to maximize profit. Sometimes this kind of reaction may lead to a lower quality in the services and the products produced by the company. Further more, the employers might ask the employees to work for much longer hours and workers might be subjected to a low quality of working environment with additional task. Minimum Wage and Poverty in the United States According to Gindling and Terrell (2007), using the study that was conducted by Blackburn and Addison in 1999, an increase in the minimum wage had a positive effect on the level of junior high school dropouts from 1983 to 1996. This can somehow be interpreted that less junior high school and teenagers stop from schooling in able to help their parents earn family income or that there have been more students who are able to continue going to school. Neumark and Wascher in 2002 conduct a study through the use of US CPS data. Their research demonstrates that an increase in the minimum wage both have a positive effect on the probability of families to fall into poverty and to escape poverty. The impact of the Neumark and Wascher study is that there is a redistribution of income among the poor.

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Even though genetically modified organisms were created to grow more food there are negative aspects to these types of crops that are harmful to humans and animals. Therefore GMO’s should be studied more because there are positive impacts but harmful side effects. Genetically modified organisms is an organism whose genetic material has been changed using genetic engineering techniques. Organisms that have been genetically modified include microorganisms such as bacteria and yeast, insects, plants, fish, and mammals. GMO’s are the source of genetically modified foods, and are also widely used in scientific research and to produce goods other than food. Some negative impacts of GMO’s are the rise in autoimmune diseases, toxic effects, allergy risks, financial impacts, and cross pollination or contamination. The rise in autoimmune diseases, infertility, and chronic diseases may be associated with the introduction of genetically modified foods. The American academy of environmental medicine, consider the role of genetically modified foods in the nations health crisis, and advise their patients to avoid all genetically modified foods whenever possible. Genetically modified foods also share certain toxic effects on the liver, pancreas, kidneys, and reproductive system that may cause cancer in these organs. The widespread use of recombinant hormones-a genetically modified substance- in the agriculture industry is associated in IGF-1, a growth hormone that, in excess can lead to cancer. GMO foods have many allergy risks to people. Genetic modification often mixes or adds proteins that aren’t native to the original plant or animal, causing new allergic reactions in the body. Modifying plants genetically forms viruses, bacteria, and othe... ... indoors and the gardener controls the season. It is also a great way to spend wholesome, quality time with your family. In conclusion, there are many alternatives rather than using GMO. There may be many positive impacts of genetically modified foods but there are way more negative, harmful side effects and consequences when creating, eating, or using gmo foods. Gmo’s do not only affect the health of the human population but it also affects nature around us. Nature has it’s own natural cycle and genetically modified organisms diserupt the natural cycle. Killing one harmless species of insects may seem insignificant but it disrupts the food chain and animals or species that rely on them will die off and so will the rest up the food chain. Scientists should study more on the GMO’s so the negatives turn into positives so it doesn’t affect people as much or at all.

Outdoor-lifestyle retailer Essay

Executive Summary BBQfun will be the leading outdoor-lifestyle retailer, catering to the growing need for furnishing new and renovated dwellings in the greater Brisbane area. The assortment offer of BBQs, outdoor furniture and BBQ accessories will position BBQfun as best inclass for outdoor-lifestyle retailing. BBQfun will reinvent the way people shop for outdoor-lifestyle products. BBQfun will build its reputation on offering the fullest assortment of products possible in our chosen fields, incorporating both local and imported goods with products sold on easy to manage long-term payment plans. Our after sales service and 3 year guarantees will find traction with a market dominated by low-quality. Situation Analysis BBQfun is close to entering its fifth year of operation. Te initial rollout of stores has been well received, and marketing is now critical to its continued success and future profitability. The store offers wide-ranging outdoor-lifestyle items on easy to manage payment terms and supplies a three year guarantee on every item sold. The basic market need is for quality, fashionable and unique outdoor-lifestyle items that caters to the house-proud needs of our market. Market Summary BBQfun possess good information about the market and knows a great deal about the common attributes of our most prized and loyal customers. BBQfun will leverage this information to better understand who is served, their specific needs, and how BBQfun can better communicate with them. Market Demographics †¢ Accessibility. The patron can gain easy access to the store with minimal wait. †¢ Customer service. The patron will be impressed with the after sales service and Guarantees. †¢ Competitive pricing. All products/services will be competitively priced relative to comparable high-end outdoor-lifestyle lines. Above all, BBQfun believes that easy to access stores with extensive choices in our chosen fields, that are sold on an easy to manage payment plan with a three year guarantee are the keys to our customer’s needs and wants. Market Trends The market trend for outdoor-lifestyle stores is headed toward a more sophisticated and informed customer. The outdoor-lifestyles patron today relative to yesterday is more sophisticated in a number of different ways. †¢ Item quality. The preference for high-quality items is increasing as customers are learning to appreciate the qualitative differences. †¢ Unique. Our patrons appreciate the opportunity to include outdoor-lifestyles in their home that stand out from the mass produced and sold low quality items. †¢ Selection. People are demanding a larger selection of choices, they are no  longer accepting a limited offer in outdoor-lifestyles. The reason for this trend is that within the last couple of years there has been an explosion of media in the form of TV shows and magazines that have promoted exotic and different outdoor-lifestyles. Our patrons no longer need to accept a limited number of options. With more choices, patrons have become more sophisticated. This trend is intuitive as you can observe a more sophisticated patron in larger city markets such as Sydney or Melbourne where there has been more choices available. BBQfun strongly believes that customers are more interested in range of products, after sales service and easy to manage payments than any other issues. These are the reasons that they will shop with us and become loyal patrons. Technological developments with the broadband rollout across greater Brisbane and Australia is opening up significant opportunities for internet shopping and for providing information for our customers about our product range. Market Growth In 2008, the National outdoor-lifestyle market reached $300 million dollars. Outdoor lifestyle sales are estimated to grow by at least 6% for the next few years. This growth can be attributed to several different factors. The greater disposable household income from the two income families, the greater availability of affordable and interesting quality imports with the high value of the Australian dollar and the marketing by popular TV shows like ‘Homes Beautiful’ and ‘Better Outdoor-lifestyles’. Economy Based on economic forecasts, BBQfun assumes that interest rates are staying steady and so will have no affect on disposable income. The same assumption is made about employment levels, where BBQfun assumes that unemployment levels remain the same at 4.7%. Political From research carried out, BBQfun identified that the Government focus and emphasis in future legislative direction will be about ‘growing the economy’ and ‘population base which BBQfun sees as a positive for their business model. There is also a strong push for environmentally sound business practices in the legislative framework. BBQfun, as business operating in Australia, will abide by the law in all its dealings and comply with all legislation that impacts on its business activities. SWOT Analysis The following SWOT analysis captures the key strengths and weaknesses within the company, and describes the opportunities and threats facing BBQfun. Strengths †¢ Excellent staff who are highly skilled and knowledgeable about outdoor-lifestyles. †¢ Great retail space that is bright, functional and efficient for a commercial urban district. †¢ High customer loyalty among repeat customers. †¢ Assortment offerings that exceed competitors offerings in quality, range and accessibility. Weaknesses †¢ A limited marketing budget to develop brand awareness due to the lack of critical mass and store cover. †¢ The struggle to continually fund the growing long term repayment plans taken out by our customers. Opportunities †¢ A growing market in a high growth area with a significant percentage of the target market still not aware of BBQfun’s offer. †¢ Increasing sales opportunities outside of our target area – greater Brisbane. Threats †¢ Competition from local independents that can reduce prices as owner operators lower than our staff run stores. †¢ Competition from National chains moving into the Brisbane market. †¢ A slump in the economy reducing customer’s disposable income spent on outdoor-lifestyles. Competition National Competition †¢ The Yard: has a limited selection but significant depth. All Australian made. No significant marketing or promotion. The price point is high, but the quality of products are quite good. Not in Brisbane. Mostly in Sydney and Melbourne. †¢ BBQ’s R us: Broad range of outdoor-lifestyle products including trinkets and furnishings. Lots of cheap imports. Concentrating on established markets. Strong in the replacements segment. Not in Brisbane. Mostly in Melbourne and Adelaide. †¢ Outdoorz: Large operations of only a few stores per city. Mass markets outdoor lifestyles at good value prices. No imported goods. Extensive advertising. Low to medium quality. Not in Brisbane. Strong in the replacement segment rather than new and refurbished  dwellings. Strong in other capital cities. Local Competition †¢ All independents. These stores are owned by individual owner operators. Ranges vary according to owner preferences. Very little imports. Mostly retailing Australian manufactured goods. Collectively their average item sale price is $250, have a market share of 48%, and are growing at about 8% per year. BBQfun do not see the competitors changing their marketing strategy or product offer in the foreseeable future. Growth and Share Analysis New dwellings – growth in potential customers 10%. Estimated Brisbane customer numbers in 2010 is 95,000. Renovations – growth in potential customers 7%. Estimated Brisbane customer numbers in 2010 is 35,000. Replacement – growth in potential customers 5%. Estimated Brisbane customer numbers in 2010 is 120,000. Service Offering BBQfun has created a outdoor-lifestyles range of retail products that are differentiated and superior to competitors. Customers can see the quality of the product as it is displayed in the stores. The following are characteristics of the product: 1. BBQfun’s credit offer is backed by a top tier bank. 2. Imported products make up 33% of the assortment. 3. The 3 year guarantee is unique in the market place. 4. Broadest possible range in chosen fields. BBQfun’s prides itself on providing service that is on par if not better than any of the local independent stores and far in excess of the national chains. BBQfun will ensure that all aspects that are involved in the delivery of satisfaction to the customer will work using an integrated approach. At a Glance–The Prototype BBQfun Store: †¢ Location: a commercial, suburban neighbourhood, or urban retail district. †¢ Design: bright and functional. †¢ Size: 1,000 to 1,500 m2. †¢ Employees: 15 to 20 full time plus casuals †¢ Types of transactions: 60% cash, 40% on long term repayment plan. Keys to Success Location. BBQfun’s site selection criteria are critical to success. Scott Bremmer, former partner of an international chain, helped us identify the following site selection criteria: †¢ New dwelling populations. †¢ Shopping patterns requiring easy access. †¢ Customer car parking counts. Critical Issues BBQfun is still in the speculative stage as a possible franchise concept or joint venture. Its critical issues are: †¢ Committed to sales growth which allows for greater options in import assortments and in reduced price with volume buys. This will promote our uniqueness and contribute to improved profit margins. †¢ Continue to finance the easy manage long term repayment plan for customers. †¢ Locate in easy access sites close to the growing markets in new dwelling development. Marketing Strategy BBQfun’s advertising budget is set at $250,000 for the year. The advertising program will target local letter-box drops, radio and magazines. BBQfun’s will do direct mail and local advertising, with coupon inserts in the BrisNews magazine likely to be the most successful of the campaigns. BBQfun will try to get articles about BBQfun into the BrisNews magazine. Previous features in the BrisNews magazine has seen a dramatic increase of sales immediately after the article was published. Mission BBQfun’s mission is to provide customers with the most extensive assortment of quality outdoor-lifestyle products available in the market. Our after sales service is second to none supported by our easy to manage long term repayment plans which make unique, imported and high quality outdoor-lifestyle affordable to all. BBQfun exist to attract and maintain outdoor-lifestyle customers wishing to purchase products that give our customers pride in their homes. Our services will exceed the expectations of our customers. Marketing Objectives 1. Increase sales from $15million per year to $20million per year in the next  three years 2. Increase our loyalty customers list from 10,000 to 16,000. 3. Establish brand recognition in Brisbane so that at least 2 in 3 people recognise our brand in a random survey taken in 18 months time. 3.3 Financial Objectives 1. A double-digit growth rate for each future year. 2. Reduce the overhead per store through disciplined management of expenses. 3. Continue increase our gross profit margins. Target Marketing The market can be segmented into three target populations: †¢ New dwellings – generally want to purchase entire suites. Typically shopped as couples. Price sensitive to a point but co-ordination is the highest priority. †¢ Renovations – demand for high quality and different items. Unique and exotic over rides price concerns. †¢ Replacement – basic functional products that replace and broken or worn item. Single shopper. Cheap price required. The BBQfun customers are mostly aged between 20 and 50, making up 50% of the new and renovated dwelling market. Outdoor-lifestyle stores have been very successful in stand alone, extensive car park access, close to new housing estates being established. These areas have families who have household disposable incomes of over $40,000 per year. Combining several key demographic factors, BBQfun arrives at a profile of the primary customer as follows: †¢ Sophisticated people who are house proud. †¢ Shoppers who will drive to an easy to access store. †¢ A customers who requires payment plans to spread their commitment over an extended period. †¢ Renovators and new home builders †¢ 20-50 year olds Positioning BBQfun will position itself as a broad assortment, quality, unique outdoor-lifestyle retailer. Brisbane consumers who appreciate high-quality and uniqueness will recognize the value and unique offerings of BBQfun. Patrons will be single as well as families, ages 20-50. BBQfun’s positioning will leverage their competitive edge: †¢ Product. The product will be wide ranging, quality and unique. It offers the house proud customer a different  option from the cheap mass produced offer prevalent in the market †¢ Service. BBQfun offer the only 3 years guarantee in the market. Our easy play payment scheme is just what our mortgage repaying customers welcome. Our experienced staff can assist with product knowledge second to none in the industry. By offering a superior service in range and uniqueness, BBQfun will excel relative to the competition and achieve our objectives. Strategy Pyramids The single objective is to position BBQfun as the premier outdoor-lifestyles store in the greater Brisbane area, commanding a majority of the market share within five years. The marketing strategy will seek to first create customer awareness regarding their services offered, develop that customer base, and work toward building customer loyalty and referrals. The message that BBQfun will seek to communicate is that BBQfun offers the widest, most exotic, easy access outdoor-lifestyle products in Brisbane. This message will be communicated through a variety of methods. The first will be direct mail. The direct mail campaign will be a way to communicate directly with the consumer. BBQfun will also use ads and inserts in Brizzy magazine.The last method for communicating BBQfun’s message is through a grassroots PR campaign. This campaign will invite people from Brizzy for lunch to get articles written about BBQfun into the news. Because of this level of effectiveness and low/zero cost, BBQfun will work hard to get press in the Brizzy. BBQfun also believe that the local patrons far prefer to receive information from the store via flyers in the letterbox. Marketing Mix BBQfun’s marketing mix is comprised of these following approaches to pricing, distribution, advertising and promotion, and customer service. †¢ Pricing. While BBQfun will price at comparable prices for comparable quality, it will not be cheap. We push value over cheap and back this up with a 3 year guarantee. †¢ Distribution. BBQfun products will be distributed through a chain of retail stores which customers can access easily via the large car parking arrangements. †¢ Advertising and Promotion. The most successful advertising will be ads and inserts in the Brizzy as well as a PR campaign of informational articles and reviews also within the Brizzy. Promotions will take the form of in store entertainment and competitions with prizes to exotic overseas destinations. †¢ Customer Service. BBQfun’s philosophy is  that whatever needs to be done to make the customer happy must occur, this investment will pay off with a fiercely loyal customer base who is extremely vocal to their friends with referrals. Product development It is envisaged that new products will be developed on a regular basis in line with changes in customer taste which is targeted at every 12 months. The plan for product testing is to engage market research firms. By getting feedback from these firms, changes can be made or products ‘canned’ so that only tested and proven products make it onto the store assortment list. Marketing Research During the initial phases of the marketing plan development, several focus groups were held to gain insight into a variety of patrons of outdoor-lifestyle stores. These focus groups provided useful insight into the decisions, and decision making processes, of consumers. An additional source of market research that is dynamic is a feedback mechanism based on a suggestion card system in store. The last source of market research is competitive analysis/appreciation. BBQfun management will continually visit local outdoor-lifestyle stores for two reasons. The first is for competitive analysis, providing BBQfun with timely information regarding other store’s service offering. The second reason is that local business owners, are often part of an informal fraternal organization where they support each other’s business. Financials, Budgets, and Forecasts This section will offer a financial overview of BBQfun as it relates to the marketing activities. BBQfun will address Break-even Analysis, sales forecasts, expense forecasts, and how those link to the marketing strategy. Break-even Analysis The Break-even Analysis indicates that $1.1 million in sales per year will be needed to reach the break-even point. Fixed costs are estimated at $150,000. Variable costs are 40% of sales, therefore sales of $1.0 million will be sufficient to pay for the fixed and variable cost. Sales Forecast The first year of the plan will be used to get the cafe up and running. By year two things will get busier. Sales will gradually increase with profitability being reached by the beginning of year two. Gross profit is  anticipated at 50%. Ongoing sales forecasting will be to use the services of Cannon’s Consultants who will advise on all aspects of the marketing function that BBQfun will be engaged with. Cannons will also be given access to the marketing cost data so that they can periodically examine and validate marketing costs in line with industry benchmarks. They have always been the preferred consultants because they are locally based unlike the national group of consultants, Brown & Holingsworth, based in Melbourne.

The Literary Theory Known as Post-Colonialism - 1061 Words

The literary theory known as Post-Colonialism is easily defined in content but not in its beginning or end. Ashcroft, Griffins, and Tiffin state that the term â€Å"covers all the culture affected by the imperial process from the moment of colonization to the present day† (2). They focus on the territories colonized by Britain in Empire Writes Back but state that the analysis can apply to the former empires of France, Spain, and Portugal. This view falls in line with the issue brought up by Childs and Williams about after whose empire or whose colonization does it begin? The United States in the 1700s, the Latin American states in the 1800s, or the mid-1900s fall of the British and French empires (1)? What is agreed upon is that the focus is on writing about the effects or culture in post-colonial societies or examining colonial literature with an eye for the moral superiority, racial discrimination, or Eurocentric viewpoint. 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