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.​

Propose a solution to meet the most important objectives. Justify your proposal. (please cite source used)

Answer 1

I will. Propose to link minimum wages to industrial price index. The reason is both objectives will be achieved. The employers will not resent higher wages when they know the prices of their products have also increased. They will not reduce employment. On the other hand labours will gain because wages will rise in proportion to rise in prices of industrial goods. Agricultural prices may also be included. The weights should be given on the basis of relevance importance of goods in consumers budget.