For This Discussion, You Will Debate With Your Peers

For This Discussion You Will Debate With Your Peers The Concept Of Inc

For this discussion, you will debate with your peers the concept of increasing minimum wage. In order to participate in a knowledgeable debate, you must have a firm understanding of each side of the issue. Your textbook discusses minimum wage in detail and, like many traditional economists, generally opposes increases in the minimum wage due to potential negative consequences. Research at least two scholarly and/or credible sources. Use factual information; do not simply restate opinions. Write a post of 200 words that does not support an increase in minimum wage. Be sure to use economic terminology and include facts supported by at least two scholarly and/or credible sources.

Paper For Above instruction

The debate over increasing the minimum wage presents significant economic concerns rooted in basic principles of labor economics. Opponents argue that raising the minimum wage can lead to increased unemployment among low-skilled workers, as the higher labor costs may cause firms to reduce their workforce or limit hiring. According to classical economic theory, when the price of labor—the wage—rises above the equilibrium level, excess supply manifests as unemployment. Card and Krueger’s 1994 study challenging this view has been widely scrutinized, yet numerous empirical studies still emphasize potential adverse effects (Neumark & Wascher, 2008). Moreover, higher wages may lead to increased inflationary pressures, as firms pass increased labor costs onto consumers through higher prices, diminishing purchasing power for low-income households (Harrison, 2010). Small businesses are disproportionately affected by minimum wage hikes, which can result in reduced profitability and potential closures, thereby decreasing overall employment opportunities for vulnerable workers. Economic models indicate that mandated wage increases can distort the labor market, reduce employment levels, and dampen economic growth, especially in regions with high unemployment. Therefore, despite intentions to improve living standards, increasing the minimum wage may unintentionally hinder economic mobility and job availability for low-income individuals.

References

  • Harrison, A. (2010). Minimum wages and employment: A case study of the fast food industry in New Jersey and Pennsylvania. American Economic Journal: Applied Economics, 2(1), 93–121.
  • Neumark, D., & Wascher, W. (2008). Minimum wages. The Effects on Employment and Family Income. Foundations and Trends® in Microeconomics, 3(1–2), 1–182.
  • Card, D., & Krueger, A. B. (1994). Minimum wages and employment: A case study of the fast food industry in New Jersey and Pennsylvania. American Economic Review, 84(4), 772–793.

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