Consider the following statements when answering this question
I. Employers are always hurt by minimum wage laws.
II. Workers always benefit from minimum wage laws.
a. I is true, and II is false.
b. I and II are true.
c. I and II are false.
d. I is false, and II is true.
BritishMale
Favorite Answer
C, both are false due to the term "Always". There are always exceptions: I'd say Employers aren't so hurt by the minimum wage laws, as firstly it has a direct effect on productivity. Working for a buck an hour is hardly a motivator to get your staff moving. Next, with everyone earning so little, there would be shockwaves sent through the economy, and, naturally we would see deflationary pressures. Deflation results in delayed demand, which sends manufacturers especially straight down the toilet.
It isn't always good for workers either, as higher costs to a business may lead them to lay off more workers. As a company owner/director, if you are paying 10 workers, and suddenly they all need $100/hour, you simply wouldn't be able to employ 10 workers, so chances are you'd consider laying off up to 9 of those workers, meaning there is a 90% of the chance that this minimum wage doesn't make you a happy "worker".
pandora s
Its definately d. The employers are hurt because they no longer can pay a worker a dollar an hour. Workers beneft because they cannot be low balled. W/o minimum wage laws most of us will be making 3 bucks an hour. thats just myopinion.
Anonymous
C. employers are hurt from higher costs, and some workers are hurt b/c they get fired since the value they create is not worth the min. wage.