On the Ballot in 4 States: Raising the Minimum Wage

The video discusses the impact of state and local elections on minimum wage laws, highlighting the differences between states with higher, equal, or lower wages than the federal minimum. It explores the ongoing debate among economists about the effects of raising the minimum wage on the economy, including job creation and potential price increases. The discussion sets the stage for future debates, particularly in the context of the 2016 presidential election, and considers the economic theories behind wage controls.

Which states were voting on proposals to raise the minimum wage?

• California, Texas, Florida, and New York

• Arkansas, Nebraska, South Dakota, and Alaska

• Ohio, Michigan, Illinois, and Indiana

• Nevada, Utah, Arizona, and Colorado

What is one argument against raising the minimum wage?

• It will have no impact on the economy.

• It will boost consumer spending.

• It will cause employers to cut benefits and hours.

• It will lead to increased job creation.

How might companies respond to an increase in the minimum wage?

• By becoming more efficient

• By hiring more employees

• By reducing prices

• By increasing employee benefits

What economic concept is related to setting a minimum wage?

• Market equilibrium

• Supply and demand

• Price floors

• Price ceilings

Why might some states choose a lower minimum wage rate initially?

• Because of a lower cost of living

• To increase tax revenue

• To attract more businesses

• Due to a higher cost of living