Suppose a state has adopted a minimum wage requirement of $18 per hour with the goal of improving the lives of those working low-skilled jobs. After a few years of this minimum wage increase, the state is experiencing higher rates of unemployment, especially among low-skilled labor. The state evaluates its options and decides to repeal the minimum wage law and lower the minimum wage to $11.50, which they feel will help fix unemployment and give them time to seek other options. What is this law an example of?

Question

Quizplus · Accepted Answer

This law is an example of the state using the laboratory of democracy, which is a concept that refers to states experimenting with different policies and laws to see what works best before implementing them on a larger scale. In this case, the state adopted a minimum wage increase with the goal of improving the lives of low-skilled workers, but found that it had unintended consequences such as higher unemployment rates. By repealing the law and lowering the minimum wage, the state is experimenting with a different approach to address the problem.

Suppose a State Has Adopted a Minimum Wage Requirement of $18