Archive forIncome distribution

Fast food protests

Fast food workers are protesting in about 100 US cities, demanding higher pay. See article for more details: http://www.npr.org/blogs/thesalt/2013/12/03/248567592/fast-food-workers-cry-poverty-wages-as-mcdonalds-buys-luxury-jet

 

Though another student posted about the same situation, this is new news as the protests are growing throughout the country. McDonalds bought a luxury jet, which was a major cause in lighting the fire for this protest. This protest is important because if the minim wage is increased, then it may effect the wages of other jobs. Others may demand more wage, which in turn will just bring all prices up, and in conclusion have no difference on those workers lives. This was an argument that, though I do not necessarily support, I have heard previously. Another reason this news is important is because if the minimum wage is increased, it will greatly benefit thousands of people and their families. A solution for not increasing minimum wage in country-wide would be if the employers would be required to pay more to their workers, which they easily can. This may cause protests in other fields that pay minimum wage, though.

As the protests continue to spread, important government decisions will be made.

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Understanding Poverty

The video mentioned below on income distribution in America is well worth watching. This course is mostly about the theory. Understanding theory is important when forming expectations regarding the impact of policies. It is important to understand the facts – though even here there can be room for discussion – before moving to policy recommendations. Here is a New York Times article on poverty that reinforces the skewed income distribution highlighted in the video. The article notes that “nearly 40 percent of Americans between the ages of 25 and 60 will experience at least one year below the official poverty line.”

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