MINIMUM WAGE Free Essay, Term Paper and Book Report
On the surface, an increase in the federal minimum wage may appear to be very appealing to most American citizens. It may seem like the best remedy to cure poverty and improve the living conditions of the poor. However, upon closer studies, the minimum wage law may have some perverse effects on employment. Although it is easy to suggest that everyone should earn a decent wage, this is very difficult to achieve.
The minimum wage law can be viewed as setting a price floor above the equilibrium wage, and it can bring upon numerous negative effects. This price floor will force employers to find new alternatives to compensate for the higher wages. For instance, employers can replace higher-quality workers for lower-quality ones, they can outsource, or just simply cutting back on the number of employees they hire. This ultimately leads to a decreasing number of jobs in the market, which causes a scarcity of jobs and a surplus of workers in the labor market. Increasing minimum wage in general only increases the costs for the employers and ends up hurting the people the minimum wage law i......
Word Count: 762
Page Count: 3 (250 words a page / double spaced)
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