4.02 econ - Notes on chapter 4 PDF

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Juan Perez Economics Mrs. Sage 4.02 Should the Government Control the Economy?

The topic about government regulation can a tricky one, especially when it comes to the economy. Some believe that certain amount of control and management on the overall income levels and prices is necessary and often healthy a nation’s wellbeing. However, other are strictly against these ideas and can’t fathom the thought of the government imposing their own will on the people’s paychecks. Some think that these regulations don’t seem democratic and are more socialistic in nature, sort of like how China control every aspect of their economy like a hawk and won’t let its citizens think for themselves. Personally, I believe that the government should regulate the economy, more importantly the minimum wage, and here’s why.

There are several reasons why the government should raise the minimum wage on a national scale. Raising the minimum wage would be beneficial for low-income families who are living paycheck to paycheck, and it would also improve the economy overall. According to the Hill, “A full-time minimum wage worker makes $15,080, $4,000 below the federal poverty line for a family of three.” This is just outrageous. To think that a working employee who works tirelessly 40+ hours a week is still below the poverty just shows how dangerously low the minimum wage is. This is especially bad for people who work in agriculture, as they sometimes earn even less, and since the high supply leads to lower prices, they barely make any money from their goods. Another good reason to raise for doing this is because it would create many jobs all over the country. For example, “The Economic Policy Institute stated that a minimum wage increase …would inject $22.1 billion net into the economy and create about 85,000 new jobs over a three-year phase-in period.” This is the great boon it could be if the government were to rearrange their budget and fund more jobs. Moreover, it could also help, close the gap between racial and gender groups. According to the PayScale, “Black women earn $0.97 for every dollar earned by a white man with the same job and qualifications”. There is a grave misjustice here between black and white men as well as black women, and raisin the salary will help. However, not all is beneficial, as businesses would be forced to lower their job openings and the unemployment rate would rise. In conclusion, I think for the most part raising the minimum wage would be beneficial for everyone, and the government should have regulation over it.

Works Cited Cha, J. Mijin. Congress Should Prioritize Raising the Minimum Wage. 4 Feb. 2016, thehill.com/blogs/pundits-blog/finance/216595-congress-should-prioritize-raising-theminimum-wage. ProCon. “Pros & Cons - ProCon.org.” Minimum Wage, 22 June 2020, minimumwage.procon.org/. Anonymous. “2020 Racial Wage Gap - Compensation Research from PayScale.” PayScale, www.payscale.com/data/racial-wage-gap....