ECON 104 Lecture Notes - Lecture 3: Real Wages, Living Wage
16 Feb 2016
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Lowest amount of money an employer can legally pay an employee. A minimum wage high enough to support a worker and his/her family at decent minimal standard. Hurting people you are trying to help. Making an adjustment for inflation and the cost of living. Nominal wage = wage you get paid. Real wage = tries to calibrate how much you can buy with a given amount of money. Nominal value of minimum wage is 350% higher than 1968. Real value of minimum wage is 32% lower than where it was in 1968. A dollar bought nearly 7 times more goods/services in 1968 than today. Raise the price of anything and demand will fall. ". Colander: the minimum wage hurts those who cannot find work at the minimum wage but are willing to work and would have been hired at the market-determined wage, (p. 107). All economists agree that the above analysis is logical and correct.
