please see prompt and write paper

Topic : What is the impact of the increase in the minimum wage on the economy in the

United States?

At the very beginning, the minimum wage in the United States was set out in the

1938 Fair Labor Standards Act. At the time, this law was to prevent employers from

exploiting workers. And the minimum wage can help low-wage workers balance the

inequality with employers as much as possible. According to data from the labor

department, this 1938 standard method has also changed with changes in the market

economy. Beginning on January 1, 2018, 18 states and 24 municipalities in the United

States raised the minimum wage. (How does NH compare on the minimum wage? |

News. (2018, September 07). Retrieved from https://www.lfda.org/news/how-does-nh-

compare-minimum-wage?

gclid=EAIaIQobChMIj8eznZSK3gIVCYnICh0oCwAcEAAYASAAEgJ_7PD_BwE).

In order to study the impact of the minimum wage, we must consider the labor

market. The labor market has the same supply and demand relationship as all markets.

Workers decide on labor supply, and companies determine demand. In the absence of

policy intervention, wage adjustment is a way to balance labor supply and demand.

Although the government’s increase in the minimum wage will increase the wages of

some people, it will also lead to unemployment. In the labor market with the lowest

wage, if the minimum wage is higher than the equilibrium level and the labor supply is

greater than the demand, then the result of the laborer is unemployment. So the

increase in the minimum wage is not an increase in the income of all workers. The

minimum wage increases the income of workers who have a job, but reduces the

income of workers who cannot find a job.