How will a living wage affect the overall demand in economy


Problem

1) Should there be a minimum wage? Should there be a "living wage"? What are the costs and benefits of a minimum wage or living wage? How does a minimum wage affect the demand for labor? How does it affect the supply of labor? (think about the supply and demand equilibrium model).

2) How will a living wage affect the overall demand in the economy? (Think about the circular flow model.)

a) Dickinson, T. (2014, February 27). The Minimum-Wage War.
b) Can you find some sources to support your position?

3) Should there be a maximum wage? Should a CEO or executive of a company have their wage tied to that of the lowest workers wage?

a) Sutter, J. D. (2013, November 21). Opinion: U.S. should copy Switzerland and consider a 'maximum wage'.

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Macroeconomics: How will a living wage affect the overall demand in economy
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