Question

Read and consider the Minimum Wage case study presented below. Evaluate the arguments presented for and against the minimum wage. States have the right to mandate a minimum wage that is higher than the federal minimum wage. Consider the state of Georgia, research its current demographics, cost of living, minimum wage laws, unemployment history, etc. and write an argument for your state representatives supporting or contesting an increase in the minimum wage. Please make this no less then 2-3 paragraphs if more better and I will rate it well. Cite all resources in APA format Case study: An important example of a price floor is the minimum wage. Minimum-wage laws dictate the lowest price for labor that any employer may pay. The US Congress first instituted a minimum wage with the fair labor standards act of 1938 to ensure workers a minimally adequate standard of living. In 2015, the minimum wage according to federal law was $7.25 per hour. Some states mandate minimum wages above the federal level. Many European nations have minimum-wage laws as well, sometimes significantly higher than the united states. For example, even though the average income in France is almost 30 percent lower that it is in the US, the French minimum wage is more then 30 percent hgiher. To examine the effects of minimum wage, we must consider the market labor. Figure A shows us or google any “A free labor market” graph, which like all markets is subject to the forces of supply and demand. Workers determine the supply of labor and firms determine the demand. If the government doesnt intervene, the wage normally adjusts to balance labor supply and labor demand. Panel B (A labor market with a binding minimum wage) You can good and search the image. Shows the labor market with a minimum wage. If the minimum wage is above the equilibrium level, as it is here, the quantity of labor supplied exceeds the quantity demanded. The result is unemployment. Thus, while the minimum wage raises the incomes of those workers who have jobs, it lowers the income of workers who cannot find jobs. To fully understand the minimum wage, keep in mind that the economy contains not a single labor market but many labor markets for different types of workers. The impact of the minimum wage depends on the skill and experience of the workers. Highly skilled and experienced workers are not affected because their equilibrium wages are well above the minimum. For these workers, the minimum wage is not binding.

Answer 1