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Two Economists Can Agree That Raising the Minimum Wage Creates

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Essay

Two economists can agree that raising the minimum wage creates unemployment yet one might argue that raising the minimum wage is a good policy and the other that it is a bad policy. Why can this difference exist? Be sure to use the terms positive and normative in your answer.


Definitions:

Manufacturing Jobs

Manufacturing Jobs are positions involved in the creation of products either directly from raw materials or by assembling components.

Frictional Unemployment

Short-term joblessness experienced by individuals transitioning between jobs or entering the workforce.

Unemployment Insurance

A government-provided benefit offering temporary financial assistance to workers who have lost their jobs through no fault of their own, to help cover living expenses.

Structural Unemployment

A type of joblessness resulting from a disparity between the abilities available in the workforce and the competencies required by businesses.

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