Economics Assessment: Collective Responsibility
On July 24, 2009, the federal reserve wage rose to $7.25 per hour for most occupations in the individual sector. While frequent states and cities entertain set their own reserve wage aloft this federal smooth, and 18 states influential their reserve wage on January 1, 2018, the federal reserve wage has stoped at $7.25 per hour. Over the gone-by sundry years, help for an growth in the federal reserve wage has after from a distant multiplicity of sources. Frequent of those who help an growth in the reserve wage appreciate this is one way the empire should application its collective function in an force to weaken destitution. The subjoined items oration the fancy of eminence the reserve wage from the present federal reserve of $7.25 per hour.
1) Reserve wage is a appraisement sole, so sift-canvass an growth in the reserve wage from a provide and claim convergence, making certain to oration the concept of residue after a while honor to the share of strive supplied and the share of strive claimed that is generated by this appraisement sole.
2) What earn be the contact on the appraisements of the products manufactured by workers established at or adjacent the reserve wage smooth, and how earn this favor overall consumer purchasing?
3) Sift-canvass any virtual changes in the incentives for low-skilled workers to growth their ethnical important, and for employers to represent important inputs (technology and automation) for strive.
4) What authority be the contact on empire spending on entitlements such as welfare, living stamps, and unemployment indemnification in unthoughtful of the occurrence that changes in the reserve wage can educe changes in unemployment and underemployment?
Based on your responses, do you appreciate that the reserve wage should be influential, lowered, stop as it presently is, or be in-one eliminated? Explain your exculpation, and form certain to oration any collective function the empire should entertain touching the welfare of its citizens after a while honor to the enhancement of salary in the individual sector.