Answer to Question #166346 in Microeconomics for Bubblys

Question

Twenty-nine states and the District of Columbia have a state minimum wage higher than the federal minimum wage of $7.25. A number of states and cities have increased their minimum wage to as high as $15 per hour. Suppose that North Carolina lawmakers are considering raising the North Carolina minimum wage to $15. Would that higher minimum wage be A Good Thing or A Bad Thing for you? If you could vote on this proposal, would you vote to raise the minimum wage or would you vote to keep it where it is? Justify your answer. Be sure to incorporate positive economic analysis (that is, the economic effects of the higher minimum wage) as well as normative economics (your opinion about whether this would be Good or Bad).

Answer 1

Raising minimum wage to $15 will be a good thing. I would then propose to raise the minimum wage. Minimum wage has positive effects especially in areas where the highest proportion of workers received minimum wage increases. Raising of the minimum wage reduces the poverty level. Raising minimum wage would increase the paycheck such that the single workers can afford to meet their basic needs as well as have some luxury life.