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the snows of Minimum Wage: The Questionable Policy

As early as 6.00 am in a dark and cold morning of Midwest winter, a few people walking on an icy sidewalk. Under chilling wind, those people walk to a large, old building. Inside the building, the people work for repetitive, backbreaking low waged jobs. In the same day, late at night, you can see similar scene: some people walking out of the building under heavy snowstorm.
Being one of those people, I know the feeling of a minimum waged worker. Like all of those workers, I feel exhausted after finishing my job. Everyday, I wait with impatience to hear my supervisor say “That is it, turn off the belt.” After put off my safety gloves and sweep my sweat, I can only think to return to my room and sleep. I lost most of my time and energy just for a few dollars.
There are a lot of people that work harder and earn less than me. The poor, especially less-skilled workers, has access only to “bad jobs at bad wages” (Blank 64). Those workers always face bad situation. They are poor. They are struggling to sustain the life of their families.
On the contrary, the owners of the company where they work have a high standard of living. Bad wage is advantageous for the group of people known as traditional elites who own labor-intensive firms because it lowers production cost, thus increase the competitiveness of the product. For that reason, it is natural for the traditional elites to keep wage as low as possible. This action creates what Karl Marx wrote in The Communist Manifesto as ”naked, shameless, direct, brutal exploitation” (82).
The minimum wage seems to be an appealing solution against these abusive exploitations. Applying a minimum wage law, government can force a wealth distribution among the owners and their lowest level workers. On Saturday, June 25, 1938, The U.S. Congress first instituted a minimum wage with the Fair Labor Standard Act. The minimum wage was set at 25 cents per working hour (US Department of Labor). The federal minimum wage is increase overtime, adjusted for higher living cost due to accumulated inflation. The minimum wage level is currently set at $5.15 per working hour (2001).
An increase in minimum wage can help the poor by substantial amount. A 75-cent per hour increase in the minimum wage means an additional $1,500 for a minimum wage earner who works full-time, year round – “as much as the average family spends on groceries in 6 months” (Bureau of Labor Statistics). For a minimum wage worker, this fund injection is greatly helpful.
Minimum wage increase is undoubtedly favorable for low waged earners, even if their current wage is well above the minimum wage. A theory known as the “ripple effects” (Welch 26) said that an imposed minimum wage increase all wages, and lowest wages are affected most.
There is at least another advantage of imposing higher minimum wage. According to Gregory Mankiw, one of the “ten principles of microeconomics” is “people respond to incentives” (7). Higher wages give stronger incentive to the labors, and as a result, a stronger effort to work. In other words, higher wages can generate higher profit. This opinion sounds too good to be true, but when Henry Ford open his famous car factory, the theory is proofed. With a very generous wage in his time, Ford recorded one of the greatest successes in the history.
As popularly believed, minimum wage provides a win-win situation to deprive poverty. If it is so advantageous then we should raise the minimum wage with a substantial ammount. The vast majority of Americans will agree to raise the minimum wage to $5 per hour or more. How many will agree to increase minimum wage to $100 per hour? I am sure that most well educated person will not agree to such an extreme increase.
According to the law of supply, a high price level will raise the quantity demanded. With a very few exception, this law prevail for all kinds of market, including the market of labor. Thus, an upsurge in the minimum wage will promote the number of people interested to join the labor force.
The new labor emerge from ... more

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Marketing Notes



[Category]:

business

[Paper Title]:

Marketing Notes

[Text]:

Chapter 1 - Marketing In a Changing World

What is marketing?

- Creating customer value and stratification are at the very heart of modern
marketing thinking and practice.

Market Defined

- Markets always focus at satisfying customers needs

- Marketing: A social and managerial process by which individuals and groups
obtain what they need and want through creating exchanging products and value
with others.

- Needs: States of felt deprivation

- Wants: Are the form taken by human needs as they are shaped by culture and
individual personality. Wants are described in terms of objects that will
satisfy needs.

- Demands: Human wants that are backed by buying power

- Products: Anything that can be offered to a market for attention,
acquisition, use, or consumption that might satisfy a want or need it. It
includes physical objects, services, persons, places, organizations, and ideas.

- Marketing myopia Sellers may suffer from Marketing myopia they
are so taken with their products that they focus only on existing wants and lose
sight f underlying customer needs. They forget that a physical product is only a
tool to solve a consumer problem.

Value, Satisfaction, and quantity

- Customer Value: The difference between the values the customer gains from
owning and using a product and the cost of obtaing the product.

- Customer Satisfaction: The extent to which a products perceived
performance matches a buyers expectations.

- If the products performance falls short of the customers
expectations, the buyer is dissatisfied. If the performance matches expectation,
the buyer is satisfied. If performance excesses expeditions, the buyer is
delighted. Outstanding marketing companies go out of their way to keep their
customers satisfied.

- Total quantity management (TQM): Programs designed to constantly improve
the quantity of products, services and marketing processes.

Exchange, Transactions, and Relationship

- Exchange: The act of obtaining a desired object from someone by offering
something in return.

- Transaction: A trade between two parties that involves at least two things
of value, agreed-upon conditions, a time of agreement, and a place of agreement.

- Relationship Marketing: The process by creating, maintaining, and enhancing
strong, value, -laden relationships with customers and other stakeholders.

- A market network consists of the company and all of its surrounding
stakeholder: customers, employees, suppliers, distributions, retailers,
advertising, agencies, and others with whom it has built mutually profitable
business relationships.

Market

- Market: The set of all actual and potential buyers of a product or service.

- Figure 1-2 (13)

Marketing

- Marketing means managing markets to bring about exchanges for the purpose
of satisfying human needs and wants.

Marketing Management

- Marketing Management: The analysis, planning, implementation, and control
of programs designed to create, build, and maintain beneficial exchanges with
target buyers for the purpose of achieving organizational objectives.

- De-marketing: Marketing to reduce demand temporarily or permantely-the aim
is not to destroy demand, but only to reduce or shift it.

Building profitable customer relationship

- A company demand comes from two groups: 1. New customers and 2. Repeat
customers.

- It costs five times as much to attract new customers as it does to keep an
existing customers satisfied.

Marketing Management Philosophies

- There are five alternatives concepts under which organizations conduct
their marketing activities: the product, selling, marketing, and societal
marketing concept.

- Production Concept: The philosophy that consumers will favour products that
are available and highly affordable and that management should therefore focus
on improving production and distribution efficiency.

- Product Concept: The philosophy that consumers will favour producers that
offer the most quality, performance, and innovative features.

- Selling Concepts: The idea that consumers will not buy enough of the
organizations products unless the organization undertakes a large-scale
selling and promotion effort.

- Marketing Concept: The marketing management philosophy that holds the
achieving organizational goals depends on determining the needs and wants of
target markets and delivering the desired satisfactions more effectively and
efficiently than competitors do.

The Internet

- Internet: A vast and burgeoning global web of computer networks with no
central management or ownership.

Chapter 2- Strategic Planning the Marketing Process

Strategic Planning

- The annual plan is a short-run marketing plan that describes the current
marketing situation, the company objectives, and the marketing strategy for the
year, the action program, budgets, and controls.

- The long-run plan describes the major factors and forces affecting the
organization during the next several years, it includes the long-term
objectives, the major marketing strategies that will be used to attain them, and
the resources required.

- Strategic Planning: The process of developing and maintaining a strategic
fit between the organizations goals and capabilities and its changing
marketing opportunities.

- At the corporate level, the company first defines its overall purpose and
mission. This mission then is ... more

the snows of

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