Question

Give a brief summary of each and explain why they are the most important.

Benefit 2 Increasing the minimum wage could reduce poverty. A person working full time at the federal minimum wage of $7.25 per hour earns $15,080 in a year, which is 20% higher than the 2015 federal poverty level of $12,331 for a oneperson household under 65 years of age but 8% below the 2015 federal poverty level of $16,337 for a singleparent family with a child under 18 years of age. [7] [8] According to a 2014 Congressional Budget Office report, increasing the minimum wage to $9 would lift 300,000 people out of poverty, and an increase to $10.10 would lift 900,000 people out of

Cost 2 Raising the minimum wage could increase poverty. A study from the Federal Reserve Bank of Cleveland found that although low-income workers see wage increases when the minimum wage is raised, "their hours and employment decline, and the combined effect of these changes is a decline in earned income... minimum wages increase the proportion of families that are poor or near-poor." [47] As explained by George Reisman, PhD, Professor Emeritus of Economics at Pepperdine University, "The higher wages are, the higher costs of production are. The higher costs of production are, the poverty. [5] A 2013 study by University of Massachusetts at Amherst economist Arindrajit Dube, PhD, estimated that increasing the minimum wage to $10.10 is "projected to reduce the number of non-elderly living in poverty by around 4.6 million, or by 6.8 million when longer term effects are accounted for." [6] higher prices are. The higher prices are, the smaller the quantities of goods and services demanded and the number of workers employed in producing them." [48]Thomas Grennes, MA, Professor Emeritus at North Carolina State University, and Andris Strazds, MSc, Lecturer at the Stockholm School of Economics in Riga (Latvia), stated: "the net effect of higher minimum wages would be unfavorable for impoverished households, even if there are no job losses. To the extent that some poor households also lose jobs, their net losses would be greater.

Answer 1

Answer:

In the article the favourable and infavourable to raise minimam wages points are given .

Favourable :-The rising in Minimum wages per hour has favourable outcome

1.Reduce poverty - A person earns $ 7.25 per hour earns 20 % higher of poverty line of 2015 and in parents with child age less than 16 year case 8 % It reduces Poverty of those earning less to bring above poverty line . Congressional Budget report says it decrease 3 lac of poverty line if raises to $ 9 and if 10.10 poverty decreases 9 lac

Unfavourable :-

Hour and Employment Losses :-

The increse minimum wages may cause poverty as per faderal reserve bank the low income worker may get higher income but hour and employment may decline resulting same income as below .

Higher cost of production :-

George reismen explained higher wages will lead to higher cost of production in turn poverty

Arindetjit estimate increase it to $10.10 lead decrease poverty line by 4.6 Million but higher price will lead small demand and so small workers requirement

Andris Strazds says the result will be unfavourable even if no job loss although job will go and household will have extent lossses greater

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