January 10th, 2018
argumentative essay on the federal minimum wage
Decisions on the level at which the minimum age should be set are influenced by various factors. Two of these factors are the effect of changes in the minimum wage level on employment and the effect on the economy. With respect to the effects on employment, increases in minimum wage level are likely to lower employment as more employers move to curtail their labor costs. However, the long-term effect of the increase may be determined by other factors such as prevailing economic conditions that influence the amount of disposable incomes that the employees who remain in employment control. In favorable economic conditions (where the inflation rate is low), the increase in disposable incomes may create more demand for products thus leading to job creation in other parts of the economy. In the subsequent sections, this paper argues for the increasing of the federal minimum wage from $7.25 per hour to $10.10 per hour as proposed since, in the long-term, such an increase will improve the livelihood of low and medium wage employees thus providing them with the capability to add to the aggregate demand that will then lead to creation of more jobs in future.
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