Question

The national minimum wage is $7.25 per hour for most occupations in the private sector. Over the past several years, support for an increase in the minimum wage has come from a wide variety of sources. Many of those who support an increase in the minimum wage believe this is one way the government should exercise its social responsibility in an attempt to reduce poverty. The following items address the idea of raising the minimum wage from the current federal minimum of $7.25 per hour.

1. Explain how the change in minimum wage will affect America’s competitiveness in the Global economy. (VC3, EQS6)

Need Detail !

Answer 1

If the minimum wage per hour for most occupations in the private sector of America increases, the living standard of people in America increase simultaneously and it will also lead to an increase in the purchasing power of the nation, and further it shows some improvemnts in the domestic economy.But the actual competion that is taking place in the international market is due to the high labour cost per product. As a result America will not be able to have a healthy competiton internationaly for an international product with countries like China where labour cost per product is very low.