What would be the impact of raising the federal minimum wage on a firm?© BrainMass Inc. brainmass.com October 25, 2018, 5:54 am ad1c9bdddf
What would be the impact of raising the federal minimum wage on a firm?
Raising the federal minimum wage has both positive and negative impact to firms and the economy as a whole. On one hand, raising the minimum wage could be a positive impact to the economy because the purchasing power of individuals is likely to increase. As the purchasing power increases, firms would have to up their productivity so as to meet the rising demand. On the other hand, some people think that raising the minimum wage would cause unemployment in the economy because firms may not afford to pay their employees ...
This solution highlights some of the impacts of raising the federal minimum wage on a firm.
9. Suppose the U.S. government is considering changes in economic and social policy to reduce wage inequality.
Evaluate whether the following will help:
(a) Decrease the benefit level to welfare recipients.
(b) Increase the benefit level paid to welfare recipients.
(c) Provide wage subsidies to firms that hire the less-advantaged.
(d) Initiate a federal training program the raises the skills of poor individuals.
(e) Pass a law mandating that all workers must be paid a "living wage," which means that all wages must be sufficient to support a family of four financially.