Recently, the House of Representatives passed legislation to increase the minimum wage in the nation from $5.15 to $7.50. Waht are the pros and cons of this proposal? Provide an analysis based on the demand and supply of labor.
Thank you so much in advance.
Thank you for using the Jiskha Homework Help Forum. As time goes by, especially for those on a fixed income, everything goes up except the wages. Here are some interesting sites, first of all about the wage increase, and then some effects of it.
1. http://www.washingtonpost.com/wp-dyn/content/article/2007/01/10/AR2007011001666.html
2. http://www.heritage.org/Research/Labor/tst042904a.cfm
3. http://www.epionline.org/study_detail.cfm?sid=98
4. http://www.thenation.com/doc/20041220/dreier
In short, since employers have to pay more to their employees, prices will go up accordingly.
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