This question has to do with the minimum wage serving as an anti-poverty program. a. What percentage of a minimum wage increase goes to families below the poverty line now versus in the 1990s? Why has this changed over the years? Make sure to use exact numbers in your answer. b. Explain why families below the poverty line receive less than 100% of a minimum wage increase. c. Jason is employed, earns the federal minimum wage, works 25 hours per week, works 52 weeks per year, is single, and has no children. Given these numbers, Jason would be below the federal poverty line. Assume the federal minimum wage increases to $15 and Jason continues to work 25 hours per week for 52 weeks per year. The large increase in Jason’s earnings places him above the poverty line. Describe how it can be true that Jason’s earnings increase significantly, yet his total income (which is income from all sources combined) might be the same as it was before the minimum wage increase.
This question has to do with the minimum wage serving as an anti-poverty program.
a. What percentage of a minimum wage increase goes to families below the poverty line
now versus in the 1990s? Why has this changed over the years? Make sure to use exact
numbers in your answer.
b. Explain why families below the poverty line receive less than 100% of a minimum wage
increase.
c. Jason is employed, earns the federal minimum wage, works 25 hours per week, works 52
weeks per year, is single, and has no children. Given these numbers, Jason would be
below the federal poverty line. Assume the federal minimum wage increases to $15 and
Jason continues to work 25 hours per week for 52 weeks per year. The large increase in
Jason’s earnings places him above the poverty line. Describe how it can be true that
Jason’s earnings increase significantly, yet his total income (which is income from all
sources combined) might be the same as it was before the minimum wage increase.
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