Economics Income Inequality Questions
Minimum wage policies play a significant role in reducing income inequality by ensuring that workers receive a fair and decent wage for their labor. By setting a minimum wage, governments aim to establish a baseline income level that workers should earn, which helps to prevent exploitation and poverty. This policy helps to narrow the income gap between low-wage workers and higher-income individuals, thereby reducing income inequality. Additionally, minimum wage policies can stimulate consumer spending and boost economic growth, as workers have more disposable income to spend on goods and services.