Microeconomics and Minimum Wage
Henry C. McRoberts III
Embry-Riddle Aeronautical University
Abstract
Throughout the years, there has been much deliberation about minimum wage. Most discussion speaks on businesses that employ untrained labor and see their profit borders diminish due to expense growth, or employees not capable of sustaining income in today’s economy. This presents a challenge to their economic growth and introducing a new adjustable to economic decision-making. Through research, we will discuss the cause and effect of increased and decreased minimum wage and how microeconomics plays critical roles in these essential movements.
Microeconomics and Minimum Wage
The minimum wage is a hot-button issue …show more content…
But what statistical, quantifiable data is used to determine ones’ income in an ever-inflating economy?
According to Merriam-Webster (2017), Minimum Wage is the lowest wage paid or permitted to be paid, and a wage fixed by legal specialist or by contract as the least that may be paid either to employed persons generally or to a category of employed persons. While members of society may be able to find a line of employment, it’s not going to secure that their salary will contend with the inflation of the economy.
As of 2015, the average U.S. minimum wage is $7.25 per hour. That would equivalate out to be $1,160 a month and an annual Salary of about $13,920 before taxes. How can employees live merely on this salary? Especially if said one is raising a family? Microeconomics has some critical formulas that the government has used to ensure that businesses continues to thrive and employees are able to receive fair imbursement for services …show more content…
Minimum wage has both benefit and drawbacks to the nation. Minimum wage stimulates the economic development of a country by increasing the consumption. While it may improve the quality of life of low-income workers, it still depends on the structure of the labor market. Studies show that a sensible increase in minimum wage does not affect employment; however, a high surge may cause unemployment in the nation (November 2013).
The steady increase of minimum wage will ensure the balance of the economy as the unemployment rate and taxes will also increase progressively. This will not cause a huge unemployment rate and over inflation to occur in the country. Through balancing the minimum wage levels, it may help to inspire economic growth and quality of life. As with anything else in economics, there are gains and detriments, but it’s a constant combination of the two that keeps financial value and fairness in equilibrium (November
Henry C. McRoberts III
Embry-Riddle Aeronautical University
Abstract
Throughout the years, there has been much deliberation about minimum wage. Most discussion speaks on businesses that employ untrained labor and see their profit borders diminish due to expense growth, or employees not capable of sustaining income in today’s economy. This presents a challenge to their economic growth and introducing a new adjustable to economic decision-making. Through research, we will discuss the cause and effect of increased and decreased minimum wage and how microeconomics plays critical roles in these essential movements.
Microeconomics and Minimum Wage
The minimum wage is a hot-button issue …show more content…
But what statistical, quantifiable data is used to determine ones’ income in an ever-inflating economy?
According to Merriam-Webster (2017), Minimum Wage is the lowest wage paid or permitted to be paid, and a wage fixed by legal specialist or by contract as the least that may be paid either to employed persons generally or to a category of employed persons. While members of society may be able to find a line of employment, it’s not going to secure that their salary will contend with the inflation of the economy.
As of 2015, the average U.S. minimum wage is $7.25 per hour. That would equivalate out to be $1,160 a month and an annual Salary of about $13,920 before taxes. How can employees live merely on this salary? Especially if said one is raising a family? Microeconomics has some critical formulas that the government has used to ensure that businesses continues to thrive and employees are able to receive fair imbursement for services …show more content…
Minimum wage has both benefit and drawbacks to the nation. Minimum wage stimulates the economic development of a country by increasing the consumption. While it may improve the quality of life of low-income workers, it still depends on the structure of the labor market. Studies show that a sensible increase in minimum wage does not affect employment; however, a high surge may cause unemployment in the nation (November 2013).
The steady increase of minimum wage will ensure the balance of the economy as the unemployment rate and taxes will also increase progressively. This will not cause a huge unemployment rate and over inflation to occur in the country. Through balancing the minimum wage levels, it may help to inspire economic growth and quality of life. As with anything else in economics, there are gains and detriments, but it’s a constant combination of the two that keeps financial value and fairness in equilibrium (November