1.
Respond to two students.
Initial Question: There is much discussion about the minimum wage and livable wage. Discuss your view of this topic in the context of ethics and justice and fairness. Be sure to support your position with reference to principles, concepts, and theory.
Please respond to two students. Respond to the two students separately
Student 1:
For starters, I think fast-food workers should be getting higher wages. I thought it was ridiculous that In-N-Out pays a starting rate of $11 plus benefits while McDonalds workers make an average of $8.25 an hour before taxes and with hardly any benefits. I think since the food fast industry makes up a large share of Americas low-wage workers need to be making more money. Ethically speaking making $8.25 an hour isnt giving your workers a healthy lifestyle and also for Mcdonalds to make the assumption that their workers should be working two jobs. These corporations need to think about their employees and provide them with a living wage. I read that New York recently mandated a $15 minimum for fast-food workers in New York City by 2018 and for the rest of the state by 2021. Similar actions are under consideration in other states (Pollin). I think we have seen that leaving the decisions to these big corporations isnt working and they are not thinking with ethics. Hopefully states around the world and understand the principle of a living wage. In the article, I read they discussed how businesses can adapt without cutbacks. They talk raises the price of fast food by three percent per year. Using available research, we estimate that such price increases would simultaneously reduce consumer demand by about 1.5 percent overall. But fast-food stores would still gain additional revenues to help offset higher wage costs (Pollin).
Student 2:
My belief is that as a right, an employee willingly agreeing to a full time position, within a well established industry, should be able to adequately live off their paycheck. John Rawlss principle of distributive justice is each person has an equal right to the most extensive basic liberties compatible with similar liberties for all social and economic inequalities are arrange so that they are both a.) to the greatest of the least-advantaged person, and b.) attached to offices and positions open to all under conditions of fair equality of opportunity. Ive read part a numerous times. It makes me wonder if Rawls is talking about making sure everyone receives an equal outcome no matter what. Maybe he is saying that the least-advantaged person just needs to have the opportunities of basic liberties, such as livable pay for example.
I was just considering the thought that livable pay can be skewed. Each person lives different. I live in a house with my girlfriend, where there could be family of three or four people living in an apartment. Apartments cost more and taking care of the lives of four people cost more. So would the livable pay be the number needed for the family of four in the apartment or for my situation? I would either be getting a decent raise or that family would receive a pay cut, if we are both living off of minimum wage. Its interesting to look at the two different sides of the situation, even though livable pay would most likely be decided on averages.
To summarize, I do believe in fair pay. I dont believe it to be morally right for someone to work 40 hours a week and still not
be able to get by.
2.
Please respond to two students
Question: Describe how wealth is built over time. How do your personal cash flow statement and your personal balance sheet assist in this process?
Please respond to two students. respond to each student separately
Student 1:
Wealth is built over time by having a continuous stable income and with that income investing in assets or reducing debt. When you reduce debts and increase investment you build a greater net worth. Net worth = value of total assets (investments, savings etc.) Value of total liabilities (debt) If you are able to make the value of your assets greater than the value of your liabilities you have a positive net worth by continuing to increase investing and not accruing more debt you build wealth. By using a cash flow statement in your quest to build wealth you are able to look at how your income and expenses correlate and see where you can make cuts financially in order to either invest and save more money or pay off the liabilities that you have. If you see a trend in your spending that you could cut in order to save more money or use that money to pay debts it is a perfect took to use the cash flow statement to build wealth. You would use a personal balance sheet to determine if you are building wealth looking at your gains or loses quarter to quarter.
Student 2:
Wealth is built overtime when you maximize your cash inflows (money you earn) and minimize your cash outflows (money your spend).
It is also important to define what is a need vs. a want. You need to know what you can afford with your current financial situation and move away from reactionary purchases that cause immediate satisfaction vs. investing in a financial future that increases your net worth with time.
A personal cash flow statement allows you to measure the money you earn and the money you spend. This will determine if you are spending within or out of your means. The personal balance sheet is a tally of your assets and liabilities that at the end will provide you with your net worth. These tools put your spending and saving into perspective. It helps you see how and where you are allocating your money and puts you in control of allocating money differently to help build your net worth (wealth).
Wealth is built by decreasing your liabilities (debt) and increasing your net-worth. If you have an income (does not have to be a significant income) and live within your means with no debt and live a simple life you can invest your money that will in-turn increase your net worth.
These statements and balance sheets must be reevaluated periodically when assets or liabilities change.
3.
Respond to two students.
Question: Crocs, Inc. was founded in 2002 and achieved success by creating a unique type of shoe made out of foam and offered in a variety of colors. Although the shoe design was often perceived as ugly, it attracted customers because of its unique nature and comfortable qualities. However, after early success, Croc began experiencing dwindling sales because it only offered one type of shoe. Crocs began to expand into other product lines such as fashionable flats, wedges, sneakers, and other products that offered the same comfort level. Yet sales continued to dwindle. In 2015 the toddler son of Prince William and Kate Middleton was seen sporting crocs, causing a large spike in sales. New leadership at the firm will attempt to increase the hype behind crocs once more.