minimum wage?
In today’s class, we did a little quiz on the issue whether the state should raise the minimum wage. The result was 55 percent against the proposal, for which I feel so surprised. As we know, if the price floor is higher than the equivalence point, there will be a surplus of supply. But the question is that where is the right position of $5.15, and how about $6.85.
I think we have mentioned the following information in class before. "If the minimum wage had kept pace with inflation, it would be more like $9 right now. We've let the floor sink so low, it's historically less than we were paying back in the 1960s," said Jen Kern, director of the Association of Community Organizations for Reform Now (ACORN), an advocacy group that has led the "living-wage" movement.
Another fact is that, under present condition, the unemployment rate in
1 comment:
I disagree with increasing the minimum wage because it is a proven economic fact that if you increase the minimum wage it will not improve the social welfare in the long run. By increasing the minimum wage it creates a surplus of workers in the job market. This surplus will decrease the amount of job opportunities there are out there for those seeking employment. By increasing the minimum wage it will only make unemployment worse than what it already is. Employers will then have to resort to other ways to offset the impact of higher wages by increasing the price of their goods, reducing the quality, or reducing fringe benefits. The overall impact of increasing the minimum wage is hurting the American job market and economy.
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