Question

The idea of raising the national minimum wage has picked up steam in recent years. Some cities with more expensive costs of living have already enacted legislation to raise the minimum wage to $15.00 over time. If you adjust for inflation the minimum wage was over $15.00 an hour during the history of the United States.Proponents of raising the minimum wage argue that it will help people live better lives and boost the economy while opponents say it will kill jobs and hurt the exact people it is supposed to help.​​

Define what the most important objectives should be in your opinion (please cite the source used)

Answer 1

In my opinion reduction of unemployment and also better standard of living both are important . If the market equilibrium wage is too low , it will lead to loss of human capital since workers will remain impoverished due to very low wages . Minimum wage laws ensure a wage rate required for basic minimum sustainance and a decent living standard . But if after setting of minimum wage , unemployment rises due to fall in demand for labour then that would be detrimental for the same group of workers , since some of them will lose jobs . So minimum wage laws must be accompanied by creation of jobs . The minimum wage must not be set very high . A balanced economy is the most important objective in my opinion .