One of the big topics that is happening in our economy today is minimum wage. According to the US News http://www.usnews.com/opinion/economic-intelligence/2015/07/24/why-its-past-time-to-raise-the-minimum-wage most people are in favor of some increase in minimum wage. All the current Democratic candidates are in favor of an increase. They don’t agree on how much it should be. Most of the Republican candidates are in favor of not increasing it. Candidates Walker and Bush do not want a Federal Minimum Wage and Candidates Santorum ($10.10/hour) and Carson (not sure how much) support a wage hike. The Pro side of this debate point to fewer workers needing to get government assistance and more money being put back into the economy. The Down side
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Not only did it provide me with spending money but it also gave me the incentive to continue with my education. It would not be easy for someone to just work 40 hours a week at McDonalds or any other low wage job and be able to make a living. Being able to support a family would be almost impossible. Having a minimum wage puts a baseline that prevents the market place from determining the actual cost / wage that should be paid for that kind of labor or service. This is one of those cases where the Federal Government has stepped in to balance what they consider to be an imbalance. There is no clear answer to if there is an increase, how much should it be? Will the reduction in government assistance to workers and their increase in spending off set what the employers will have to cut like benefits, number of workers or using automation or contract workers to maintain their business. Our textbook says that a government imposed wage floor has 2 distant effects - Reduces the quantity of labor demanded and increases the quantity of labor supplied. This will create a market surplus in labor. This will give us the same result that they were talking about in the US News article about McDonalds. Teenagers and inexperienced workers will have the hardest time finding
Not only did it provide me with spending money but it also gave me the incentive to continue with my education. It would not be easy for someone to just work 40 hours a week at McDonalds or any other low wage job and be able to make a living. Being able to support a family would be almost impossible. Having a minimum wage puts a baseline that prevents the market place from determining the actual cost / wage that should be paid for that kind of labor or service. This is one of those cases where the Federal Government has stepped in to balance what they consider to be an imbalance. There is no clear answer to if there is an increase, how much should it be? Will the reduction in government assistance to workers and their increase in spending off set what the employers will have to cut like benefits, number of workers or using automation or contract workers to maintain their business. Our textbook says that a government imposed wage floor has 2 distant effects - Reduces the quantity of labor demanded and increases the quantity of labor supplied. This will create a market surplus in labor. This will give us the same result that they were talking about in the US News article about McDonalds. Teenagers and inexperienced workers will have the hardest time finding