History of Minimum Wage

1137 WordsJul 10, 20185 Pages
The definition of Minimum Wage is “an amount of money that is the least amount of money per hour that workers must be paid according to the law” (Minimum wage). Minimum wage, like other laws, are used to keep the economy in line. Minimum wage laws were invented in Australia and New Zealand with the purpose of guaranteeing a minimum standard of living for unskilled workers. (Linda Gorman) Minimum wage puts a price on the services one offers. Many different principles can be used to explain Minimum wage and explore the different aspects of it. Including what minimum wage does for our economy and the current status of it. 2. History of Minimum Wage According to Principles of Macroeconomics by Gregory Mankiw, “The U.S. Congress first…show more content…
So many Young people don’t get a chance to gain experience, which overall hurts the economy. 4. Principles of Economics When it comes to minimum wage there are multiple ways to explain it. One way is to see minimum wage as a tradeoff. Yes, people will have more money in their pocket, if they keep their jobs. Yet at the same time prices may rise because of employers being forced to pay more. Which of these two options is the less damaging to the economy? There is no perfect solution for the economy and minimum wage. There will always be something that hurts the economy while trying to save it. In a perfect world workers, employers, and the economy would all benefit equally. In America right now we use our labor to sell to employers. We give up time with our families, time for relaxation, and time for any other time. The opportunity cost of working is all this time. America faces a trade off when it comes to raising the minimum wage. If we decide that we are going to raise the minimum wage then we are giving up jobs. So the opportunity cost of more jobs is higher wages for those that have jobs. Also if there is more people unemployed the government then must step in and help those people. Why do people work? People work to get something, they work for incentives. We have a problem today of unemployment and a large group not in the work force. By raising the minimum wage
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