http://smallbusiness.foxbusiness.com/starting-a-business/2014/03/24/obama-overtime-law-could-mean-no-more-employees-for-startups/
The big issue in this instance is government regulation going to hurt small business? I would argue the answer is more often yes than no. In this example, new labor laws make it more difficult to hire employees without paying them overtime, or one may have to hire more employees all together. Is this fair? The people who are taking all the risk in the economy are told how to do what they are doing, and no this is not fair at all.
Entrepreneurs should not only get every advantage possible because they are single handledly investing in the US economy, but they usually have a problem being told how to run their own business. Main point, do not regulate labor too much, it hurts the people who support the american dream.
I would say that I would have to agree. I believe that government regulation on business should be limited. The most regulation should be placed on big businesses, who can still find success with some regulations placed on them. Small businesses need freedom so they have to opportunity to become big. Once businesses reach a certain size they should be minimally regulated.
ReplyDeleteI think this is an interesting article, and it provides interesting solutions to the problem it outlines. However, I am worried about the idea of 'employee-free' businesses, as this would only contribute to unemployment in America. I also agree with Dylan about the idea of regulating small business after a certain point, rather than in their start-up days.
ReplyDeleteWith government regulation into small businesses, less people will be hired. This, in turn raises unemployment. The fact is, these entrepreneurs of businesses create jobs for the American people, and boost the economy.
ReplyDeleteAlong with this, I think the government's proposal of raising the minimum wage to above $10 is absolutely preposterous. Younger people such as myself might think tis will give them more money to dispose, but in fact companies would have to make one of two choices. They will either 1) have to raise prices in order to satisfy their employee's increasing salaries, which increases inflation, or 2) have to let go of employees they cannot afford, which raises unemployment. More jobs are created with a lower minimum wage, but to a certain extent it cannot be too low. I personally like where it is right now, and I certainly do not hope that Congress allows it to be risen above $10.
I disagree with Joey that it would be bad to increase the minimum wage. The decrease in employment from increasing the minimum wage slightly would be minimal. On the other hand, increasing the minimum wage would also help reduce poverty. There has been a lot of studies on this, and the last study I read emphasized that increasing the minimum wage would take 4.6 million people out of poverty.
ReplyDeleteI would agree in that we shouldn't regulate the labor markets to much because it will hurt the smaller companies and the entrepreneurs. If we regulate it to much these companies will eventually have no choice but to not higher as many workers or possibly even close down and these are the driving force in the economies
ReplyDeleteIf you increase the minimum wage, prices will eventually go up everywhere leading to no real benefit from increasing the minimum wage. I do think the regulations though on businesses are not needed and keeping some companies from growing as well as they could be.
ReplyDeleteBased off of the article assigned in class "Big Bills Left on the sidewalk" it is clear that government regulation and some intervention in economic policies is the main contributing factor to the economic well-being of a nation and is most accurate in explaining the major income differences between countries- why some economies are more successful than others.
ReplyDelete