Most countries around the world have some sort of minimum wage law.?

Question

. Explain why the minimum wage may hurt workers as much as help them. Give some ideas as to how the government could help workers more effectively.

Answer 1

min wage acts as a classic price floor. It creates disequilibrium between Q-supplied (workers want to work more) and Q demand ( companies need less workers at the pay required)

There is no way to fix it, but there are other benefits (dynamic over time) that may outweigh the short term problems. That is what needs to be addressed