Discuss the reasons why President Obama met with America's largest employees. According to the article corporate profits, "are at their highest level in 60 years," and the "stock market is up 150%." Explain how it is possible that workers are experiencing wage stagnation if though corporate profits are high. Explain how each of President Obama's three solutions are examples of governmental role in the economy.
The Wall Street Journal, President Barack Obama Says Wages Feeding 'Undertow of Pessimism'5/3/2016 Read the article and answer the prompt. Be sure to include contextual evidence to support and explain your answers.
Discuss the reasons why President Obama met with America's largest employees. According to the article corporate profits, "are at their highest level in 60 years," and the "stock market is up 150%." Explain how it is possible that workers are experiencing wage stagnation if though corporate profits are high. Explain how each of President Obama's three solutions are examples of governmental role in the economy.
5 Comments
Lilly Imhof
5/6/2016 09:42:15 am
President Obama met with the some of the largest employers to question why they were not raising wages that they had the power to boost. It is known that corporate income has gone up while wages have been facing stagnation. This is partly because people are holding jobs that they may not want or jobs that do not pay enough for them to climb up the economic ladder. To combat this, Obama has come up with three solutions: raise the minimum wage, increase infrastructure, and make tax changes. The tax changes would “boost manufacturing jobs” while infrastructure spending would “aid in boosting pay”. His solutions show how the government has a rather large say in where our economy goes. Higher minimum wage means that companies would be forced to pay their workers more, and that is the first step in jump starting the economy. Tax changes are an example of how the government allocates money, and part of that allocation would be infrastructure spending.
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Chad Winkler
5/10/2016 09:06:17 am
Obama met with America's major employers because he feel that "wage stagnation had created 'an undertow of pessimism despite generally good economic news.'” He is concerned that while corporate profits are at the highest in 60 years and the stock market is up 150%, wages are stagnant or sliding. A possible reason for this is because people are working jobs that they either don´t want, or feel won´t allow them to get ahead. Obama has 3 solutions: raise the minimum wage, boost manufacturing jobs, and make new infrastructure jobs, the latter two from tax cuts. Manufacturing jobs and infrastructure jobs would give people more selection when choosing a job, and a higher minimum wage would give them more money to spend, which would help the economy grow.
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Dillon Hufnagel
5/12/2016 08:38:48 am
President Obama met with America's largest employers in order to inquire why they were not raising wages. “Although corporate profits are at the highest levels in 60 years, the stock market is up 150%, wages and incomes still haven’t gone up significantly and certainly have not picked up the way they did in earlier generations." Yet wages do not rise due to the fact that people are holding their jobs. Obama proposes that we raise the minimum wage, increase infrastructure, and make tax changes. All of these, according to President Obama, will help to raise wages.
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Caitlyn
5/12/2016 09:13:59 am
Barack Obama exchanged with America’s largest employers prodding them on their thoughts about why wages are being held back when they have to power to boost wages. Why they aren't raising wages when the stock market and profit are at it's highest. Although corporate profits are high, wages and income still haven't gone up. Due to wage stagnation holding back economic growth, he proposed raising minimum wage will boost wages, along with new infrastructure and to make tax change.
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5/12/2016 07:23:44 pm
President Obama has recently met with some of the largest employers, asking questions about why exactly they are not raising wages, when they has the opportunity to do so. What did they have to say about this? Stagnant wages is a problem, while the corporate income is increasing, which is almost a double negative. We can owe this partly to people who are holding tightly to jobs that they don't necessarily enjoy, or jobs that aren't paying enough for them to one day take a step higher on the "economic ladder". Obama has been coming up with solutions, some of these include, "Raising minimum wage, increasing infrastructure, making tax changes etc.". The tax changes he is suggesting would help boost manufacturing jobs immensely and the infrastructure spending would help in boosting pay. These solutions also show just how much of a say that the government has on the economy. Higher minimum wage only makes it so that businesses will have to pay their employees more, which is a step in the right direction for jump starting the economy.
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