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Is minimum wage a price floor or price ceiling? Please explain why. Provide at least one argument FOR minimum wage and one argument AGAINST minimum wage that you learned by watching the video or reading the article. In your opinion, should the federal government set a minimum wage? Why or why not? In your opinion, should the government get involved with controlling prices in our economy? Why or why not?

User Erik Z
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Answer:

The minimum wage is an example of a price floor

Step-by-step explanation:

The reason why it is a price floor and not a price ceiling is because the employer, cannot legally pay a wage lower than the one set by either the state and/or federal government. A reason to provide the minimum wage is that it helps workers subsist with a minimal standard of living to meet their necessities.

However, one could argue that with a minimum wage, the employer would have to introduce massive layoffs and there would be fewer jobs.

The government should introduce a minimum wage at the federal level and hope the states follow suit, where it becomes a living wage and workers don't have to subsist in dire conditions.

The government should set a standard for firms to allow for collective bargaining, as well as ensure that there isn't price gouging, yet allow firms to be competitive with each other.

User Grigor Gevorgyan
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