When addressing minimum wage

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When addressing minimum wage, the argument has always been that the minimum amount that can be paid in order for a person to be able to sustain themselves. Sometimes, it can seem oversimplified because most Americans do not have a broader understanding of how wages affect several components of the economy. For example, an article by the Journal of Agricultural and Applied Economics discusses the effect of having a fifteen-dollar minimum wage on the production of eggs in the state of Iowa. A large portion of the country depends on exports of whole goods from Iowa and other rural parts of the Midwest for corn, wheat, eggs and other produce. Though workers in the egg industry, on average, make above minimum wage, even increasing their wages by a small amount also increases the cost of labor to the businesses. This increase could lead to having the price of eggs reach above the EQUILIBRIUM PRICE, which would then cause for there to be a SHORTAGE in goods from the DECREASED DEMAND response to a hike in the price of goods. Some states have had an approach in increasing the minimum wage throughout the course of a few.

Reference no: EM133629741

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