Some Republicans Back State Wage Increases

In: Business and Management

Submitted By Pillypham
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Some Republicans Back State Wage Increases by Reid J. Epstein
(Source: Wall Street Journal)
Hien Nguyen
E200: Fundamentals of Economics
T, R 1.15-2.30
Professor Srinivasan
October 21, 2014.

Some Republicans Back State Wage Increases
Introduction
In the article “Some Republicans Back State Wage Increases” by Reid J. Epstein, government currently make the minimum wage is $7.25 per hour. At this rate, jobs are elastic in the market because small business and big business are still can manage their budget to hire more employees. President Barack Obama’s call to increase the federal minimum wage with the purpose is increase the income per person in the household. Republicans believe if the federal minimum wage continues raise above $7.25 or more, then jobs are not available much more than right now. Economists believe raise the minimum wage is not a good way to help people survive under the high cost of living. It will not encourage people spend more on their income because the cost of everything in the market will raise as much as minimum wage increase. Therefore, some states like Alaska and Arkansas have been raised the minimum wage from $7.25 to $10.10 above the federal minimum wage. The raised in the minimum wage of these state have not make any different in the change of income. Opposite, jobs are become less available or require higher qualification for employee.
Using Economic Concepts to Understand the Negative Side Of
Raising the Federal Minimum Wage Economic key terms are the most important step to understand economist discuss about the negative side of raising the federal minimum wage in United States. The two economic concepts that are relate to this article: demand and supply, and the government intervention in the form of price floor for the federal minimum wage. In the term, demand and supply use to explain for this article is…...

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