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Economics Lecture Two (view source)

Revision as of 23:46, August 9, 2009

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→‎Minimum Wage and Price Controls: added section
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Moreover, illegal aliens find a wage of even $2 an hour 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 several lawsuits.
 
Moreover, illegal aliens find a wage of even $2 an hour 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 several lawsuits.
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== Minimum Wage and Dropping Out of School ==
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Researchers have found that one effect of raising the minimum wage is that more students drop out of school, or do not go on to college, because they can make more money working at jobs than they could before. This can be understood as follows:
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:Suppose that "x" number of students quit school to work at jobs when the minimum wage is $6 per hour.
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: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.
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:Therefore raising the minimum wage causes more students to leave school in order to work at jobs.
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Other studies show, however, that the more education that someone has, the higher their average income is.  Students who complete four-year colleges make more money on average than students who completely only two-year colleges, for example.  Students who complete two-year colleges likewise have higher average incomes than students who end their education after high school.
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Raising the minimum wage thus entices students to take advantage of a "short-term" benefit of the higher wage, but they are worse off in the "long-run".  They would make more money by staying in school and not being enticed by the increase in the minimum wage.
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==Socialized Medicine==
 
==Socialized Medicine==
  
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