Begin by locating a scholarly article regarding the effects of increases on minimum wages and discuss its findings. Does a minimum wage increase lead to reductions in employment, or is the overall effect on employment net positive? Do you agree or disagree with the results of the study? What do you think are other vital considerations that should be taken into account in the study? Discuss how conscious capitalism would approach a minimum wage increase. Provide examples to support your rationale.
Sample Solution
Increases on minimum wages can have both positive and negative effects. On the one hand, they can provide a much needed boost in income to low-wage workers, helping them to meet basic needs such as food and housing. Furthermore, it could lead to increased spending from these individuals which would stimulate economic growth. On the other hand, increases on minimum wage may also lead to job losses or reduced hours for those affected by the change. It could also put pressure on businesses’ bottom line as they must pay employees more without necessarily receiving an increase in revenue. Ultimately, it is important that any changes are made carefully so as not to disrupt existing markets or create additional financial burdens for employers and employees alike.