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Minimum Wage
Part 1
Article review
Based on the article, the proposed policy is likely to increase the number of low skills jobs. This is because when the minimum wage rises, it attracts a large population of unemployed personnel who are highly qualified. Skilled laborers often go for higher remunerations and when companies cannot afford them, joblessness in the country elevates. On the other hand, an upsurge in the minimum wage affects the companies’ power to employ many skilled workers so as to save costs. However, they create more opportunities for workers who have low-level skills and who do not demand huge pays. Eventually, this results to poorly qualified workers being employed in large numbers while a significant number of highly capable workers remain unemployed.
Based on the article, the proposed policy to increase the minimum wage is likely to increase poverty. Today, the largest percentage of job seekers are educated or rather skilled. As such, a rise in the minimum wage means that companies will have to employ a few people who are adequately trained. The rationale behind this action by the employment sector is that highly qualified workers are expensive and hence only a small number can be accommodated. The direct consequence of employing few skilled workers in a society where many people are educated will result in high unemployment rates and hence poverty.
One of the points in the article that matches the supply and demand model of minimum wage discussed in class is the argument by a 23-year-old woman working at the Congress Hall Hotel. She asserted that her employer would only be able to retain her only at the current wage of $35 per month if a minimum wage for women and children was not established. This means that when the minimum wage is increased, the hotel might not be able to afford her or anyone else at a price higher than what she is already receiving. The supply and demand model demonstrates how an upsurge in the minimum wage causes firms to need fewer workers which in turn, causes unemployment.
Part 2
Review of minimum wages in D.C and Wyoming states.
State District of Columbia (D.C) offers the highest minimum wage of $13.25. On the other hand, Wyoming State has a relatively low minimum pay of $5. 15. To start with, the state D.C has a total of 708, 220 employees in the various sectors. Based on this figure, the annual minimum wage for all occupations in D.C is $85, 720. The management sector has the largest number of workers whose average pay per year is $175, 720. Still, in the same state, financial clerks are the least employed and earn an annual salary of $59, 230. On the other hand, the state of Wyoming has a total of 267, 890 employees in all sectors whose mean wage is $47, 650 per year. As such, comparing the two states, D.C’s minimum wage for all occupations is higher than of Wyoming’s yet it has the largest number of employees. As for D.C, occupations that require the highest level of education such as chief executives, public relations, and computer-related jobs are the most binding in terms of the minimum wages.  In contrast, careers with the lowest number of employees have the least amounts of average minimum wages. This contradicts the supply and demand model of minimum wages as it asserts that the higher the minimum wage, the lower the number of employees. Nevertheless, in Wyoming State, the data was consistent with the supply and demand model of the minimum wage as the mean annual wage was low in occupations that had the most employees.