Please do not copy and paste from internet-thank you / The increase in the minim
ID: 1113113 • Letter: P
Question
Please do not copy and paste from internet-thank you / The increase in the minimum wage has recently been an important topic of discussion in all segments of our society. The national, states and local governments have all engaged in what to do in this policy area. Workers who receive a minimum wages and employers who pay it are the main players effected.
Find 4 articles that address these issues and answer the following in your discussion:
What would be the benefits of increase in the minimum wages?
What would be the economic, political and social drawbacks of an increase?
How would you go about finding a policy alternative that would produce outcomes satisfactory to most parties involved?
Explanation / Answer
1.
The benefits of increase in the minimum wages are as follows:
A. It reduces the poverty and increases the purchasing power of the people who are in jobs.
B. It helps in increasing the aggregate demand that in turn increases the production activities.
C. The job opportunities become attractive and more people join the labor market.
D. There were less financial burden upon the government transfer payments and funds can be used for other productive purposes.
E. It will help in reducing the economic disparity between the different classes as a result of minimum wage increase.
2. Economic drawbacks will be to increase unemployment as firms will hire less people in jobs. Firms will pay the higher minimum wages, but less number of people will be employed. Political drawbacks will be the criticism of government policies that leads to less number of job creation. The government will way the unemployment benefits to more people. The social drawback will be the chaos due to growing unemployment and a new income disparity within a class. It can create the conflict.
3.
A policy alternative should focus upon:
A. The human capital development that leads to the development of highly skilled worker who can fetch more than the minimum wage on their own. It will not require the government to raise the minimum wage.
B. Increase in aggregate demand that requires new supply and demand of input factors of production. It will raise the wages given to the workers.
C. Promotion of entrepreneurship and small business initiatives that reduce the pressure in the labor market. Less supply of labor will make firms to pay relatively higher wages to the workers.
It will help firms get skilled and more productive workers. Firms will have more business opportunities, leading to pay more to the workers without any reduced number of jobs. Besides, the small businesses will create new jobs for the people. Hence, the different objectives of the government will be fulfilled and class conflict will also come down.
References:
Should the Federal Minimum Wage Be Increased?. Retrieved from: https://minimum-wage.procon.org/
Pros and Cons of Raising the Minimum Wage. Retrieved from:https://www.thebalance.com
Designing Thoughtful Minimum Wage Policy at the State and Local Levels. Retrieved from: http://www.hamiltonproject.org
Welfare Effects of Minimum Wage and other Government Policies.Retrieved from: https://are.berkeley.edu
Full web URL cannot be given due to the answering board guidelines.