This idea of hiring 50,000 employees is a great way to help stimulate the economy. The excess demand for jobs is so extreme in America since the economic downfall in 2008, there is a desperate need for more supply of jobs. The demand for jobs far precedes the supply of jobs in America today. By hiring workers at McDonalds it will create more opportunity for people to be hired to other jobs because the demand will decrease as more workers are hired at McDonalds. Workers hired at McDonalds will be given $8.30 per hour, which is a dollar and ten cents higher than minimum wage which is $7.20. Hopefully this will be a motive for people to gravitate towards applying to work at McDonalds. This will help the economy move the issue of demand of job opportunities vs. supply of job opportunities more towards economic equilibrium and farther away from America’s current economic issue of excess demand of jobs. Perhaps this will increase McDonald’s current marginal product of labor meaning that by increasing the number of employees hired, there will also be an increase in output of product. By increasing the output of product McDonald’s will also increase their revenue.
- Lizzie S
- Lizzie S
I think McDonald’s is making a smart, bold decision to offer up 50,000 jobs to unemployed Americans. The unemployment rate in our country is so high right now that creating any new job opportunity could benefit both the economy and the American people. This unemployment rate is a direct result of the minimum wage debacle. While minimum wage is great because it provides workers with a certain amount of money that they are required to receive, it also has its downsides. The unfortunate consequence of minimum wage is that there are more workers than available jobs. This then creates an increase in unemployment. McDonald’s is really helping our economy by hiring 50,000 new people into the workforce. Since the salary for these new workers is higher than minimum wage, hopefully the effect of excess demand will not come into play. Excess demand is a form of disequilibrium that results from the issue of minimum wage. The economy of the United States will surely benefit from McDonald’s helpful move in hiring 50,000 more workers. It will reduce excess demand of jobs but it will also increase product output at McDonald’s restaurants.
ReplyDeleteI agree with you Lizzie when you say that McDonalds' choice to hire more workers and pay them 8.30 an hour will encourage more people to apply to this job, but what happens when production and supply of the products at McDonald's sold, raises higher than the demand for its products? If output overtakes demand, the company will suffer from the lack of revenue that is being brought in. Also, I feel that the worker output that comes from 50,000 people will not be as effective as if there were less people. The overall outcome of work from 50,000 people, will however be greater than if there was less people putting in a little more effort.
ReplyDelete