In order to receive a good grade on this assignment, students need to be sensitive to –and be able to explain—long run changes in the “nominal” and “real” value of the minimum wage. It is imperative that the student is able to describe/explain what is “going on” with changes in the minimum wage.
As a simple exercise in quantitative writing, the emphasis is tightly focused on tracking and explaining changes in data or a specific variable.
Practicing and mastering the skill of quantitative writing
Emphasizing and describing long run changes in an economic variable
Interpreting graphical and/or tabular data
Practice in data gathering related to a specific economic issue
TASK:
You are tasked with the responsibility of writing a brief “note” on trends in the minimum wages. Overall, you are expected to describe what’s going on with the minimum wage in the United States: Has it increased? Has it increased during some time periods but decreased in others? What’s the demographic profile of persons earning the minimum wage in the United States? What explains the difference between trends in the nominal and real value of the minimum wage? Your “note” must include a graph that displays and compares trends in the nominal and real value of the minimum wage. Your “note” need not be longer than 2 pages but should certainly be no shorter than one page.
Sample Solution
Sample Solution
Friedman has said that Hong Kong has a Laissez-faire economy because government economic spending in Hong Kong is at most 15 percent of the national income (1998). Laissez-faire is French for “let it do”. In relation to economics, Laissez-faire refers to minimal interference in economics by governments. Hong Kong is very close to having a laissez-faire economy, which has its benefits. Hong Kong is very small in size, and therefore has very few natural resources; despite this, Hong Kong’s economy is booming. Its gross domestic product, GDP, per capita is the 17th highest in the world, at $61, 400 (The World Factbook, 2017). A high GDP per capita indicates a high standard of living because there is a large amount of economic output per person. The higher the GDP per capita is, the more likely it is that the public is satisfied with their country, which subsequently leads to a lower likelihood of political uprisings.
Unlike Marx’s theory that capitalism is only a stage that is overthrown by people who seek out communism after their dissatisfaction with capitalism, the Soviet Union was dissolved because people were unhappy with the communist system. The non-competitive nature of communism has negative implications on all tiers. The working class knows they are guaranteed the same benefits regardless of how much work they’re doing, and how well they’re doing it. The room for economic growth is minimal. At a higher level, there is no competition between firms, which causes a stagnation. No economic growth leads to unhappiness, which leads to political backlash, and revolutions.
