Question

Please answer in essay form the following questions:

1) Discuss how misconceptions in regards to (technology, wage prices, sweatshops, immigration, teacher salary schedule, women's wages and executive pay) are still rampant despite the economic research showing otherwise. Explain how you would go about changing the public's misconceptions. Do you agree with the public or the economist from the articles we have read? Why? Pick a stance but support your argument with economic reasoning.

Answer 1

As per the economic articles , the evolution of technology has made man's life easier . Though effective use of machinery has reduced the cost of production , however machine driven industries have led to higher displacement of workers creating massive unemployment.

Due to massive unemployment the workers are forced to work with very low wages and long working hours to sustain their livelihoods.

Sweat shop is a work place that has socially unacceptable conditions with dangerous conditions , long working hours and low pay . 19th century saw a rise to Anti Sweat Shop Movement and laws like Factories Act 1833 were formed . Eventually slave ownership and slave trade were made illegal .

The major issue with sweatshop movement is that where were the displaced workers placed ? To sustain themselves they had to again work at very low wages like Bangladesh which has a minimum wage of $60 .

The higher number of immigrants have increased the market supply of labour. Though some economists support such immigrants on the basis of free trade , globalisation and skill specialisation. But this excessive supply of labours have lowered the market wage rate substantially thus deteriorating their living conditions.

Teacher Salary Schedule and Executive pay have lowered the quality of services provided by them . This is because fixed salary and non monetary benefits induce a person's lethargic attitude . Instead a performance based pay scale would have improved their quality and dedication to work substantially.

Another movement that rose to heights in the 19th century was equality to women in terms of equal work, wages and working conditions .

Even after formation of strict laws , women are paid lower than men . Even if they are willing to work at low wages , they are denied work on the basis of maternity conditions low productivity or monthly health low productivity .

Maternity leaves are considered a burden by the .employer and thus he refrains to employe women .

Thus movement like minimum wages , equality to work have raised issues and concern over the prevailing inequalities, however the measures taken to improve such inequalities have proved to be vague as the ground realities are quite different.

Government should consider a review and monitoring method in order to effectively implement these policies.