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Task 4 - Prompt 5

Reading for Viewpoints

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13:00

Read the following article from a website.

Citing the precipitous rise in the cost of living index, Councilor James Wu has tabled a motion to aggressively hike the municipal minimum wage to $18 per hour. Wu contended that the current baseline is tantamount to a poverty trap, failing to provide workers with the purchasing power necessary for subsistence in an inflating housing market. "We are witnessing a dangerous stratification of our community," Wu asserted. "Unless we mandate a living wage that reflects real-world costs, we will continue to see an over-reliance on municipal social assistance programs—effectively subsidizing low-wage employers with taxpayer dollars."

However, Karen Mitchell of the Small Business Alliance warns that such a drastic recalibration would trigger a wave of commercial insolvency. While acknowledging the moral imperative of fair pay, Mitchell argued that a sudden 20% spike in payroll liabilities cannot be absorbed by independent retailers operating on razor-thin margins. She cautioned that the unintended consequence would be a contraction in the youth labor market. "If labor becomes prohibitively expensive," Mitchell explained, "employers will simply automate entry-level positions or cease hiring inexperienced staff, ironically hurting the very demographic this policy aims to uplift."

Professor Alan Chen, a labor economist, urged the council to avoid viewing the issue as a binary choice between equity and solvency. Chen championed a 'graduated implementation' model, wherein the wage floor rises incrementally over a 36-month period, indexed to inflation. "A shock-therapy approach risks triggering an inflationary spiral that negates the wage gains," Chen noted. "By tethering increases to economic indicators, we allow small businesses time to adjust their pricing structures while ensuring workers see consistent, albeit slower, improvements in purchasing power."

Community advocate Lisa Morgan, however, criticized the debate for focusing too narrowly on hourly rates. Morgan argued that without broader structural reforms, a higher wage is merely a band-aid on the wound of precarious employment. She pointed out that many workers in the gig economy are misclassified as independent contractors and thus ineligible for the minimum wage regardless of the rate. "An $18 hourly rate is meaningless if you are denied guaranteed hours or sick leave," Morgan stated. "We need a holistic 'Bill of Rights' for workers that addresses scheduling predictability and benefits, not just the number on the paycheck."

Choose the best option according to the information given on the website.

1. Councilor Wu argues that the current minimum wage effectively results in
2. Karen Mitchell warns that the primary victims of the proposed hike might be
3. Professor Chen’s 'graduated implementation' aims to prevent
4. Lisa Morgan contends that focusing solely on the hourly wage rate fails to address
5. The article suggests that while all parties agree on the problem of poverty, they disagree on

The following is a comment by a visitor to the website page. Complete the comment by choosing the best option to fill in each blank

While I applaud Councilor Wu's moral stance, I fear his economic logic is 1..... As a small business owner, I operate on margins so thin they are practically transparent. Mitchell is right: if you force a 20% hike overnight, I won't fire people out of malice, but out of 2..... However, ignoring the problem isn't an option either. Chen's proposal offers a 3..... If we could phase it in, I could adjust my prices gradually without losing all my customers. But frankly, Morgan hit the nail on the head. The real crisis isn't just the wage; it's the 4..... Until we stop companies from treating staff as disposable contractors, raising the minimum wage is just 5.....
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