Question

Explain your position on the minimum wage and whether it should be increased or not. Analyze the implications of the income inequality in the US and if this a problem that the US should focus on. Evaluate the growing trade deficit on the US economy.

Answer 1

Minimum wage act is mandated by the actions of government. Generally there is higher wage prevailing in the market. There is demand that minimum wage rate must be raised further. But scholars contend that it would not be favorable for unskilled labour. It would drive up demand for the skilled labor only. Thus many low skilled and unskilled would be rendered unemployed.

Thus income inequalities might rise further.

Trade deficit is more than 480 billion dollar in the US economy. It has been predominantly caused by the trade imbalances with china. Government needs to address the trade deficit with china. There must be right trade deal with china.