Question

During the 66ᵗ Independence celebration speech, the regional minister of your region announced: "One of the biggest causes of juvenile delinquency in this region is the high rate of unemployment among 16- to 19-year-olds. The low wages offered by employers in the region have given fewer teenagers the incentive to find vacation employment. Instead of working all vacation, the way we used to, today's teenagers slack off and cause trouble. To address this problem, I propose to raise the region's minimum wage by $1.50 per hour from the current equilibrium price of $3.00. This will give teens the proper incentive to go out and find meaningful employment when they are not in school." Evaluate the regional minister's plan to reduce juvenile delinquency.

Answer 1

The regional minister's plan to raise the minimum wage to reduce juvenile delinquency has potential benefits and drawbacks.

Step-by-step explanation:

The regional minister's plan to raise the region's minimum wage by $1.50 per hour from the current equilibrium price of $3.00 in order to reduce juvenile delinquency has both potential benefits and drawbacks. On the positive side, increasing the minimum wage may provide teenagers with a stronger incentive to seek employment during their vacation time. This could lead to a decrease in idle time and potentially reduce the likelihood of engaging in delinquent behavior. However, it is important to consider that raising the minimum wage could also have negative consequences, such as creating an excess supply of labor and potentially leading to job losses for low-skilled workers.