AnthonyBonanniminimumwage

AnthonyBonanniminimumwage - Anthony Bonanni Professor...

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Anthony Bonanni Bonanni - 1 Professor George Diemer The American Economy 0858, Section 002 16 February 2011 Minimum Wage Should Be Abolished The best way to define minimum wage is the lowest allowed wage of income for anyone working, put in place by laws. Most states have different laws in place for minimum wage. Minimum wage is normally regulated by setting a certain hourly rate to be the lowest allowed by employers. The debate over minimum is still going on to this day, with one side saying that the laws should be abolished, and the other side saying that the hourly minimum rates should be raised. The original purpose of minimum wage laws was to guarantee a living wage for all people working. A living wage is basically an hourly rate of income that is sufficient enough to prevent poverty. The side of the argument saying that minimum wage laws need to be abolished usually refers to the simple supply and demand model for the labor market. On the x axis, labor is represented, and on the y axis, wage is represented. Without minimum wage laws, employers would use the point of equilibrium wage and equilibrium quantity of labor as their own minimum. This point occurs when the lines for the supply and the demand for labor intersect. When the minimum wage is above the equilibrium wage and labor quantity, workers want to provide a higher quantity of labor to the market, but employers only want to employ fewer workers. This creates a higher supply of labor with a lower demand for labor, or a surplus of labor. This surplus in labor is also known as unemployment.
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Bonanni - 2 The main benefit of an increase in the minimum wage is that it increases the standard of living for low wage, unskilled workers. Other benefits include a higher work ethic from minimum wage workers and a better influence for people to enter the labor force. Opponents of the minimum wage laws say that there is usually a ripple effect that goes along with a raise in the minimum wage.
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AnthonyBonanniminimumwage - Anthony Bonanni Professor...

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