How are minimum wage laws related to economic inequality?
A) A stagnant minimum wage contributes to economic inequality.
B) A low minimum wage helps the overall economy.
C) Countries with the lowest minimum wage are the most economically equal.
D) The United States lowered the minimum wage to get out of the Great Depression.

Question

Quizplus · Accepted Answer

Minimum wage laws play a significant role in economic inequality. A stagnant or low minimum wage can contribute to economic inequality as it fails to keep up with rising costs of living and can lead to a widening gap between the wages of low and high-income earners. A higher minimum wage can help reduce economic inequality by providing low-wage workers with a more livable wage and increasing their purchasing power, which can boost the overall economy.

How Are Minimum Wage Laws Related to Economic Inequality