do you think that minimum wage laws affect overall poverty? Explain.
Ans) Minimum wage ensure social security for workers. In absence of minimum wage, employers can exploit the workers and workers might get very low wage and be forced to live in poverty. A minimum wage ensure that workers get a fair wage for their labour. It helps to pull the workers out of the poverty by ensuring minimum income.
However, there is also the probability that due to minimum wage, employers now employ less workers, keeping other workers from being employed. It will lead to increase in unemployment and more people will be in poverty.
So, minimum wage affect poverty in both positive and negative way. Now which effect will be more, depends upon the level of minimum wage. If minimum wage is too high, it will lead to more poverty due to more unemployment and if minimum wage is just right, it will help poor to come out of the poverty.
do you think that minimum wage laws affect overall poverty? Explain.
Do the minimum wage laws affect overall poverty?
“Where most economists agree is that the higher minimum wage does not do much to relieve poverty.” The Economist This agreement among economists is best supported by the fact that: Unemployment rates for teenage women are lower than those for teenage men. Minimum wage increases are usually matched by increases in the EITC (Earned Income Tax Credit). Minimum wages do not affect labor markets when the economy is growing. Minimum wage laws by their design cannot distinguish between rich and...
What do you think the likely outcome will be with a higher minimum wage? Why do people work for minimum wage?
Review “The Minimum Wage” on p.117 of the text. As you may know, this is a “hot topic” now on Capitol Hill in the White House, the Congress, and on national TV with many “famous” economists. How is the topic of the minimum wage being discussed by Congress? Do you think there should be an increase in the minimum wage? How do you think it would affect unemployment? Provide specific examples to support your answers.
Explain why U.S. minimum wage laws have historically had only a small impact on employment. Include a graph to depict the minimum wage as a part of your answer.
What do you think about the debate in the media regarding minimum wages and employees seeking a rise from the $7.50 level to $15? What would happen if minimum wage was raised to $15? How would this affect the labor market? More jobs? Less jobs? Higher consumer prices? What do you think?
In a recent lecture, Prof Quax stated, raising the minimum wage reduces overall worker welfare. Do you agree?
Do you think that Johnson's war on poverty obtained the results that it was intended to have? Explain your reasoning in 250 words or more.
Explain why changes in minimum wage can affect higher-paid employees as well.
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...