Think about workers’ productivity, will it change if they face higher wages?  How about inflation, what will the effect be from higher wages?

Think about workers’ productivity, will it change if they face higher wages?  How about inflation, what will the effect be from higher wages?

Article 4.6 “What are the Effects of a $15 Per Hour Minimum Wage?” By Arthur MacEwan

Supplemental article: Article 5.3 “Unions and Income Inequality” by Arthur MacEwan

Wages always matter in our lives, whether for the worker of for their families. It is often felt that the current minimum wage is not sufficient, and everyone would like to see higher minimum wage. This article prompts us to think deeper about minimum wage.

Think about workers’ productivity, will it change if they face higher wages?  How about inflation, what will the effect be from higher wages? Related to Unit 10 discussion, think about how higher minimum wages will affect consumption possibilities. Can households consume more? Do they need to borrow more? Consider inflationary effects that can emerge because of higher wages.

At the end, will well-being improve with higher minimum wage? Are there other  aspects that can impact this effectiveness of minimum wage on workers’ productivity and well-being? Should the minimum wage be higher than $15/hour, or lower instead? Should the minimum wage be implemented across the nation? What about differences across States? Should richer States apply higher minimum wage? If so, would that be fair? According to MacEwan, how does the effect of increasing the price of labor differ from the effect of increasing the price of cars or tomatoes?

Take a look at MacEwan’s other article listed above. In that article, unions represent workers to fight for higher wage. But at what cost? Please incorporate your thoughts about this in your responses. As you will see in your discussion threads, issues surrounding wages are complex and very challenging. We may have thought initially that higher minimum wages are desired by everyone, but is it really?

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