If the federal minimum wage was abolished, would economic classes become more or less polarized than with one?

Answer 1

This seems more like a psychology question to me.

If the federal minimum wage were abolished, there probably wouldn't be a difference, as many states have minimum wages higher than the federal rate anyway.

Economically, raising the minimum wage tends to cause some mixture of a price increase and/or higher unemployment, depending on how mobile labor and goods are in the region.

Psychologically, people are greedy and jealous, and you'd likely see minimum wage workers angry at people who are successful.

Answer 2

But if your question was whether there would be more or less polarization without ANY minimum wage (federal or state) I would say more polarized. Minimum wage would likely go down and minimum wage employees would likely get poorer, while minimum wage employers got richer.

Answer 3

you're maximum surprising on all counts, different than the Fed does no longer enable it because of the fact it may nonetheless would desire to loan the government the money they mandatory to function and then lose the additional money the tax payer will pay in. yet in a different way is to alter the tax code and flow to a flat tax around the board. If we had a flat tax fee at of 17 to 22% on all earnings without deductions, they could earn extra money than they do now, with the middle earnings people carrying the burden. The state did no longer have a state earnings tax when I lived there interior the '80's and throughout the time of sales and tourist tax in basic terms that they had countless the wonderful roads and faculties, fire and police and reserves than the different state, proving that a state does not % the earnings tax. in basic terms until now I moved to Texas, I lived in Kentucky and that that they had earnings tax and the comparable sales tax as Texas yet had countless the lesser stored up roads and very nearly no reserves. This proves that an earnings tax is the lesser part of a sales base.

Answer 4

Since most states vary with respect to min wage, I'd go with little or no change. It would most likely be each state and those who reside within would have to decide if what was being earned was sufficient. And since some states pay higher wages, there might be migration in the short run to that respective state. Polarization occurs in extreme circumstances economically. Indus. Rev and Great Depression.

Answer 5

Probably some people would take less per hour than the present minimum just in order to be in work.

I don't think it would make the rich richer, though... so not "polarized", no.