Question

I need step by step solution to the following this question asap,answer should cover no more than half a page .I have limited time so please do it quickly with detailed explanation .thanks in advance/Ha

Q. “Minimum wages kill jobs.” Discuss.

Answer 1

Ans) Price control is a measure taken by the government to protect the interests of underprivileged group. It is of two types price ceiling and price flooring.

Price flooring is the legal minimum price set by the government. A classic example of it is minimum wage.

Minimum wage is usually in debate. Implementation of minimum wages, protects the interests of workers. It protects them from exploitation at work. It increases living standard of workers and pulls them out from the poverty.

But on the flip side, minimum wages result in increased unemployment. Employers either cut jobs or ask for more skilled workers at this wage. Leaving less skilled and less experienced workers in jeopardy. Minimum wages more adversely affect those who have less skill and those who need experience i.e students.

Minimum wages result in increased structural unemployment. It can do more harm than good as it results in job cuts and put many workers out of their jobs. It might result in increased poverty.