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The Pros And Cons Of Raising Minimum Wage

770 Words4 Pages

“Price ceilings prevent a price from rising above a certain level. When a price ceiling is set below the equilibrium price, quantity demanded will exceed quantity supplied, and excess demand or shortages will result. Price floors prevent a price from falling below a certain level. When a price floor is set above the equilibrium price, quantity supplied will exceed quantity demanded, and excess supply or surpluses will result. Price floors and price ceilings often lead to unintended consequences.” Minimum wage raise, something many people are hoping for. But will it work? When the government imposes a higher minimum wage, employers face higher labor costs and are forced to respond by decreasing other production expenses (Sullivan, 2014). Some …show more content…

People should be able to work in a top city and be able to afford to live there too. New York is a prime example of rent control, according to US news the average home in New York is $384,202 and the average salary is $60,108. It seems very hard to get affordable housing, so the government has regulated the rent control to help keep the lower and middle income families living and working in large cities (The Economist, 2017). When the rent is capped and the price is stabilized, the tenants get a place to live within their economic means. Many people want and need this opportunity, so the need out numbers the product (The Economist,2017). Many tenants don’t have the ability to get credit to try for better housing. The free market would not let all economic classes rent in certain areas. Some basic problems can occur; since there are many people living in a capped area the owners are not making the money they want off of it, therefore they may cut costs in areas such as utilities and basic upkeep. This causes some of the current housing to deteriorate. Others may stay in a rent controlled building longer than necessary because of the economic price, even if it is too big or small for the family (Gelinas, 2012). Another downfall for rent control is that people will choose to live alone, if they can afford the rent, reducing the number of necessary apartments for others. Also people of all incomes can rent one of these apartments example Cindy Lauper, Mia Farrell, Gov David Patterson, etc... (Gelinas,

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