Should the United States pass a minimum wage that assures all workers earn a wag
ID: 1172981 • Letter: S
Question
Should the United States pass a minimum wage that assures all workers earn a wage above the poverty level? Defend your position using economic principles. Should the United States pass a minimum wage that assures all workers earn a wage above the poverty level? Defend your position using economic principles. Should the United States pass a minimum wage that assures all workers earn a wage above the poverty level? Defend your position using economic principles. Should the United States pass a minimum wage that assures all workers earn a wage above the poverty level? Defend your position using economic principles.Explanation / Answer
No, absolutely not. Such a wage would actually be much higher than many workers earn today. That would result in massive increases in unemployment as businessess who can not afford the higher rate lay workers off, higher fewer workers or simply move operations elsewhere. The cost of goods and services would also increase dramatically negating any gains by paying those who can find jobs more money.
Minimum wage laws reduce job opportunities for unskilled and particularly for younger workers. We have already seen this at work with the current minimum wage. Before it was enacted the unemployment rate for black teenagers was 25%. A few decades after the minimum wage the unemployment rate for black teenagers has skyrocketed to 72%. So what do these kids do instead if they can't get jobs? Personally it makes more sense to me to allow a shop owner to hire the 3 people he needs at say $5.00/hr than be forced to hire only the 2 people he can afford under the arbitrarily mandated $7.25/hr and have to work them harder. It benefits the employer, the worker and those looking for work to get rid of this mandate.