Minimum wage: Berkeley shoots for $19 an hour
The article reports that while workers in US are rallying around to push the minimum wage to 15 $ an hour , the Berkeley Labor Commission is proposing a $19 minimum by 2020. As a result of this some feel there will be decrease in number of available jobs , loss of working hours including closing down of small businesses that will not be able to sustain the high wages payout to the working staff. Many believe the move hampers Allocative and Cost Efficiency of markets and Minimum Wage is not enough a safety net to counter Inflation and high cost of living in big cities.
Topics include Minimum Price, Labor Markets, Price Control and consequences of Price Control. Explain the unintended effects of Minimum Wage hike on increasing levels of Unemployment with Labor Market Surplus using the Price Control diagrams.
Evaluation will cover perspectives of workers, employers (producers), and government in short term and long term. The governments are responsible for addressing Income inequalities in the society balancing it with the Economic growth. Discuss how Market Intervention is a necessary step with its undesired side effects.