Some states and cities have or have plans to raise the minimum wages to $15/hour. In...

Some states and cities have or have plans to raise the minimum wages to $15/hour. In July, the House of Representatives passed legislation to raise the federal minimum wage to $15/hour. There also have been many protests (especially in the fast food industry) over the past 2 years about setting a $15 minimum wage. Amazon has raised its minimum wage to $15, Target plans to have a $15 starting wage by 2020, WalMart is working toward $15, and Senator Sanders (Vermont) has been pressuring companies to raise their minimum wages to $15/hour. Discuss and analyze the economic implications about this topic. How does the political aspect of the debate affect the economic analysis?

Expert Solution

The increase in the minimum wages has diverse economic implications. They are listed as below.

Negative Implications

1. There will be a fewer job creation in the economy than before. This is because the wages paid to the employees are higher than before, which increases the production costs.

2. When the cost of production increases, the prices of the goods rises leading to inflation.

3. Small business firms stands to loose

Positive implications

1. Insrease the standard of living of the people.

2. Reduce the inequalities among the rich and poor .

3. Encourages the people to join the workforce.

The politicians favour as well as oppose this move based on the above mentioned grounds.

Many companies are forced to increase the wages since their counterparts has increased it. But, the increase in the minimum wage will be beneficial to the economy only if it is increased up to the desired level , taking in to consideration the demand and supply of labour.

Rahul Sunny answered 1 hour ago

Economists commonly teach that minimum wages cause some unemployment.The federal minimum wage is $7.25/hour, but roughly...

Economists commonly teach that minimum wages cause some unemployment.The federal minimum wage is $7.25/hour, but roughly 33% of states have higher state minimum wages. a. Why cant you test the "minimum wages cause unemployment" theory by simply comparing unemployment rates across states with different minimum wages? b. What would be a better way to test this hypothesis?

Write a position statement on Minimum Wages in the United States.

Write a position statement on Minimum Wages in the United States. The answer should include the following sections: (1) your topic introduction, (2) your position on the topic, (3) economic arguments against your position, (4) economic arguments for your position, (5) a brief concluding paragraph, and (6) at least three sources which are used in this writing.

Study 1: Unemployment Rates in Areas Where Minimum Wages Are Higher in the Cities Than in...

Study 1: Unemployment Rates in Areas Where Minimum Wages Are Higher in the Cities Than in Surrounding Suburbs City Unemployment Rates Suburb Unemployment Rates P1 P 1 = 0.069 P2 P 2 = 0.062 N1 N 1 = 52 cities N2 N 2 = 56 suburbs The Z(obtained) test statistic is 1.99. Using a significance level of .05, the Z(critical) is +1.645. Which of the following is the appropriate conclusion to your hypothesis test? The difference between the unemployment rates...

What are some cities, states, and counties that have reached carrying capacity ? - what made...

What are some cities, states, and counties that have reached carrying capacity ? - what made them reach carrying capacity?

The population of cities in the United States reports 30 crimes per hour. A researcher believes...

The population of cities in the United States reports 30 crimes per hour. A researcher believes that regions lower in socioeconomic status will have more crimes per hour. A sample of cities crimes per hour are listed below. Compare these scores to the population (? = .05). Cities low in SES Crimes per hour 1 24 2 32 3 29 4 31 5 33 6 34 7 31 8 32 9 30 10 30 Will we need a one- or...

Write a position statement on Minimum Wages in the United States. Please write in at least...

Write a position statement on Minimum Wages in the United States. Please write in at least 1000 words. The answer should include the following sections: (1) your topic introduction, (2) your position on the topic, (3) economic arguments against your position, (4) economic arguments for your position, (5) a brief concluding paragraph, and (6) at least three sources which are used in this writing. Please do NOT copy and paste from another source (Looking for answers not plagiarism).

Although some states and cities have passed laws to ban texting and using handheld phones while...

Although some states and cities have passed laws to ban texting and using handheld phones while driving, there is no current law to ban all cell phone use while driving. However, according to the National Safety Council (2009), 28 percent of all crashes—1.6 million per year—are caused by cell phone use and texting by drivers. The mission of a new national nonprofit organization called FocusDriven, patterned after Mothers Against Drunk Driving, is to make phone use while driving as illegal...

The Brookings Institution has released a half-hour podcast interviewing two economists about strategies to raise wages...

The Brookings Institution has released a half-hour podcast interviewing two economists about strategies to raise wages and strengthen the economy for American workers. In this episode, Jay Shambaugh, director of The Hamilton Project and senior fellow in Economic Studies at Brookings, and Jared Bernstein, senior fellow at the Center on Budget and Policy Priorities, discuss the decades-long trend of real wage stagnation and policy solutions for increasing productivity, strengthening wage growth, and ensuring that national economic growth is reflected in...

The travel-to-work time for residents of the 15 largest cities in the United States is reported...

The travel-to-work time for residents of the 15 largest cities in the United States is reported in the 1998 Information Please Almanac. Suppose that a preliminary simple random sample of residents of San Francisco is used to develop a planning value of 6.25 minutes for the population standard deviation. If we want to estimate the population men travel-to-work time for San Francisco residents with a margin of error of 2 minutes, what sample size should be used? Assume a 95%...

Using the diagram above, suppose the minimum wage was increased to $15 an hour. The results...

Using the diagram above, suppose the minimum wage was increased to $15 an hour. The results would be: Group of answer choices 18.3 million people would be employed 1.3 million workers would lose their jobs a shortage of 3 million workers A surplus of 1.7 million workers

Question