Minimum wage is a controversial public policy that involves several microeconomic and macroeconomic problems. Minimum wage serves as the lowest wage, by law, that specific groups of individuals can be paid. Minimum wage laws and legislations differ throughout the United States and the rest of the world. The minimum wage in Indiana is currently $7.25 per hour. There are several pros and cons regarding the public policy of minimum wage, as well as multiple economic viewpoints that can be analyzed. Through examination of the public policy of minimum wage, a justifiable position regarding the policy will be able to be conferred.
There are several reasons that minimum wage laws and legislations have been set in place over the course of many years. These laws, as stated, set a minimum income for specific groups of
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Because of this legislation, unskilled workers are guaranteed a minimum standard of living (Gorman). This minimum standard of living is the least an individual/family can live on, still with a sense of communal comfort. Although minimum wage serves as a foundation for workers across the United States and throughout the world, this public policy does not guarantee individuals with jobs. Many economists are also arguing that minimum wage is no longer able to stimulate the economy and that the gap between low income and high income workers is becoming a larger, more dangerous trend. Furthermore, some economists are beginning to examine the effects of raising minimum wage to expand economic stability and security to various workers and stakeholders.
Correspondingly, there are several economic perspectives that delve into the pros and cons of the public policy of minimum wage. The implementation of an increase in minimum wage is a commonly supported argument. Increases are said to put more money into the pockets of low-income workers, which, as a result, will stimulate and expand the overall economy (Mejeur). In