Unlearn Conclusion NWM

Question 1

Conclusion

Answer 1

Overall the costs of increasing the national minimum wage outweigh the benefits so the govemrnety shock not raise the NMW. This is because although for some who already employed and cannot easily be replaced a higher NMW will increase incomes with technology developing so rapidly most low paid workers are to easy to replace. So a higher NMW will cause firms to sustibe labour for capital worsening unemployment and pushing workers into long term unemployment. However this depends on the sector of the economy in sectors like cleaning workers cannot be replaced by robots so easily so a higher NMW will help workers earn higher wages