Take home exam essay (1 spaced)

Take home exam essay (1 spaced) - Raise lower or keep the...

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Raise, lower, or keep the current minimum wager Yuki Hirai CLC/Economics We should raise the minimum wage because the extra money earned by the working class will be “put back” into the economy without increasing any state or federal deficit. The controversies raised of whether raising the minimum wage will cause the unemployment rate to go up; businesses moving to other states to avoid the higher minimum wage, increasing the minimum wage also decrease the employee turnover rate for companies does seem “logically” plausible but with some thinking it can be understood that those reasons do not always apply to raising the minimum wage issues. It does seem logical that by raising the minimum the unemployment rate will go up, but that is not always the case. Excluding very small businesses, like family owned businesses, larger companies always compete with each other to have a higher hourly wage so they can attract more skilled and experienced labor. If the minimum wage is set at $7.25, Walmart may be paying $7.25 to obey the law but Target on the other hand may be paying $10 to their employees. This causes Walmart to either lay off workers so it can raise their minimum wage up to the price and compete with Target or they will lose employees because they switch to Target. But this does make Target unable to higher as many employees as before, so the amount of workers leaving Walmart will generally be larger than the amount of employees that Target can higher, thus this creates an increase in unemployment. If the
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