Changes

== Minimum Wage ==

== Minimum Wage ==

Today, the government prohibits employers from paying wages below a certain amount per hour, called the “minimum wage.”  As of July 24, 2009, the minimum wage rate in New Jersey and nationwide is $7.25 per hour (in some states it is higher).  If you work 40 hours a week for 50 weeks, or a total of 2000 hours, then that translates to a yearly salary of $14,500.  It is difficult to support a family on that small amount in some areas of the country, and many politicians are constantly demanding an increase in the minimum wage.

Today, the government prohibits employers from paying wages below a certain amount per hour, called the “minimum wage.”  In 2013, the minimum wage rate in New Jersey and nationwide is $7.25 per hour (in some states, such as California and Nevada, state law requires a minimum wage that is higher than the federal minimum of $7.25 per hour).  If you work 40 hours a week for 50 weeks, or a total of 2000 hours, then $7.25 per hour results in a yearly (annual) salary of $14,500.  It is not easy to survive on so little income.

Unfortunately, it is even more difficult to support oneself without a job at all, which is what happens to many people (particularly teenagers) when the minimum wage is increased.  Employers who would hire someone to work at $5 per hour might not be able to hire them at $7.25 per hour.  Isn’t a job at $5 an hour better than no job at all?

But it is even more difficult to survive without a job at all, which is what happens to more people when the minimum wage is increased.  Employers who would hire someone to work at $5 per hour might not be able to hire him at $7.25 per hour.  Isn’t a job at $5 an hour better than no job at all?

Moreover, illegal aliens find that a wage as low as $2 an hour is better than what they could make in their homeland.  Companies move operations offshore to take advantage of places that do not have minimum wages as high as ours.  Alternatively, workers enter this country illegally to work at low wages and displace American workers, according to the claims made in several lawsuits.

Also, the higher the minimum wage is in the United States, the greater the incentive for companies to move their factories to another country, such as Mexico or China, where workers are paid much less than $7.25 per hour.

There is another effect to raising the minimum wage that is also hurtful.  Researchers have found that raising the minimum wage causes some students drop out of school, or not go on to college, because they can make more money working at jobs than they could before.  This can be understood as follows.  Suppose that "x" number of students quit school to work at jobs when the minimum wage is $6 per hour.  If the minimum wage is raised from $6 per hour to $7 per hour, then jobs appear more attractive to students and even more will leave school than before.  More than "x" students will quit school and work at $7 per hour than at $6 per hour.  Therefore raising the minimum wage causes more students to leave school in order to work at jobs.

There is another effect to raising the minimum wage that is also hurtful.  Research proves that raising the minimum wage causes teenagers to drop out of school, or not go on to college, because they can make more money working at jobs than they could before.  This can be understood as follows.  Suppose that "x" number of students quit school to work at jobs when the minimum wage is $6 per hour.  If the minimum wage is raised from $6 per hour to $7 per hour, then jobs appear more attractive to students and even more will leave school than before.  More than "x" students will quit school and go to work at $7 per hour than at $6 per hour.  Therefore raising the minimum wage causes more students to leave school in order to work at jobs.

The more education that people have, the higher their average income is.  Studies show that going to a four-year college increases the lifetime income of an average person by about $500,000.  Students who complete four-year colleges make more money on average than students who completely only two-year colleges.  Students who complete two-year colleges likewise have higher average incomes than students who end their education after high school.

That is not good, because typically the more education that someone has, the higher his income is.  Studies show that going to a four-year college increases the lifetime income of an average person by about $500,000.  Students who complete four-year colleges make more money on average than students who completely only two-year colleges.  Students who complete two-year colleges likewise have higher average incomes than students who end their education when they graduate from high school.

Increasing the minimum wage entices students to take advantage of a "short-term" benefit of the higher wage, but they are worse off in the "long-run" over the time period of their entire lives.

In other words, increasing the minimum wage entices students to take advantage of a "short-term" benefit of the higher wage, but they are worse off in the "long-run" over the time period of their entire lives.

==Price Discrimination==

==Price Discrimination==