Microeconomics Research Paper - 1617 Words

Nicholas Benyola Professor Mansourian Econ 201- 25 17 May 2012 Microeconomics Research Paper Minimum Wage In the United States, minimum wage has remained at a low number for several years. Minimum wage is defined as the lowest possible income that an employer can legally pay an employee. This ensures that all people are fairly paid and not defrauded by companies or businesses. Minimum wage is considered a price floor and the minimum wage laws determine the lowest price possible that any employer must pay for labor. In an economic model, the quantity of supplied is greater than the quantity demanded and the minimum wage is above equilibrium price and quantity. Minimum wage prevents labor supplied and labor demanded from moving†¦show more content†¦This is a true statement, but opposition says that this only drives up the standard of living and inflation rate in the world. Inflation is defined as the overall general upward price movement of goods and services in an economy. Although some people who earn the minimum wage are teenagers, almost two-thirds are adults. The average min imum wage worker brings home about half of his familys earnings. Increasing the minimum wage will help these workers to make up for lost ground due to inflation and it will help make work pay. Though inflation is one of the main problems in our economy and even though inflation and minimum wage are directly related, increasing minimum wage will give opportunity for a lot of lower class families to make enough to afford important things, such as insurance. If someone takes a trip to the doctor, with no insurance, they will most likely have to pay around eight- hundred dollars out of pocket. This would take anyone at least three months on minimum wage with two incomes to pay off these medical bills. Barak Obama’s plan to institute a health care plan for everyone will relieve a huge burden on people and also allow them to stay above the poverty line. Heidi Shierholz, an economist at the Economic Policy Institute says, â€Å"Jacking the federal minimum wage from $7.25 to $8.25 w ould give a raise to 10 million workers, including many currently earning their stateShow MoreRelatedEco 201 Final Project (Selected Topic Is Ford Motor Company)988 Words   |  4 PagesBuy: http://hwcampus.com/shop/eco-201-final-project/ ECO 201 Final Project Guidelines and Rubric Overview The final project for this course is the creation of a research paper. Every day, millions of economic choices are made by people—from what brand of soap to buy to how many employees to hire for a factory. 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