Question 1

            The minimum pay that employers can give workers on lowest hourly remuneration on a month or daily basis is the minimum wage. The intended purpose of the minimum wage is directed at the potential benefits of the employees across all levels. It is intended to ensure that all workers have a decent remuneration despite the category of their work. This is a form of restricting any kind of exploitation by the employees. It is also intended on improving the class divisions. It minimizes the difference in wage gap of similar category of the workers despite the positioning at the spectrum. Minimum wage is also intended on improving on local hiring. Once the satisfaction within the payment structure is ensured, the employees will benefit from local hiring, as more quality will be injected.

            Minimum wage implementation is intended on improving productivity. Rather than employing several workers at lower pays, employees will be compelled to acquire fewer and more productive workers, thus improving on the general. An added intention of the implementation is improvement of the well-being. Despite the working hard of an employee, justification cannot be received by little pay. Equaled compensation caters for his or her well-being according to the input. Another intention of minimum wage is the filtration of low-end labor-intensive industries. The advents of foreign companies in the market, which are categorized as low-end, have to be minimized. This is because locals lack employment. Minimum wage will therefore limit their operations. An added intention of minimum wage is the improvement of social harmony. Despite the differences in social classes, minimum wage can enable a harmonious living between citizens as each represents an equal footing in compensation of the work done.

Question 2

            The state with the highest minimum wage is Washington D.C. Currently it has a rate of $9.47 basic minimum per hour. The feature that makes it likely to increase over time is the availability of adjustments according to inflation especially to the urban wage earners and clerical workers.

Question 3

            The states that have a minimum wage that is higher than the federal minimum except Washington D. C include Arkansas, Arizona, Alaska, California, Colorado, Connecticut, Denver, Florida, Hawaii, Illinois, Massachusetts, Maryland, Maine, Minnesota, Michigan, Missouri, Montana, Nebraska, New Jersey, New Mexico, New York, Nevada, Ohio, Oregon, Rhode Island, South Dakota, Vermont, Washington, West Virginia.   

Question 4

State Rate
Arkansas 5.7
Arizona 6.7
Alaska 6.3
California 4.2
Colorado 4
Connecticut 6.4
Delaware 5.2
Florida 5.6
Hawaii 4
Illinois 6.2
Massachusetts 5.5
Maryland 5.5
Maine 5.5
Minnesota 3.6
Michigan 6.3
Missouri 5.4
Montana 4.2
Nebraska 2.9
New Jersey 6.2
New Mexico 6.1
New York 5.8
Nevada 6.8
Ohio 4.8
Oregon 6.7
Rhode Island 6.8
South Dakota 3.3
Vermont 4.2
Washington 6.3
West Virginia 6
Average 5.386207

The rate is slightly lower than the national average of the federal minimum wage. The federal minimum wage point difference to the achieved of the selected group of states is almost three, on the national average.

Question 5

State Rate per capita
Arkansas 5.7 34,723
Arizona 6.7 35,979
Alaska 6.3 46,778
California 4.2 44,980
Colorado 4 45,135
Connecticut 6.4 58,908
Denver 5.2 41,940
Florida 5.6 40,344
Hawaii 4 44,024
Illinois 6.2 44,815
Massachusetts 5.5 39,481
Maryland 5.5 51,971
Maine 5.5 54,687
Minnesota 3.6 37,497
Michigan 6.3 46,227
Missouri 5.4 39,049
Montana 4.2 37,370
Nebraska 2.9 43,143
New Jersey 6.2 37,361
New Mexico 6.1 53,628
New York 5.8 35,079
Nevada 6.8 52,095
Ohio 4.8 39,289
Oregon 6.7 38,786
Rhode Island 6.8 44,990
South Dakota 3.3 43,659
Vermont 4.2 42,994
Washington 6.3 45,413
West Virginia 6 34,477
Average 5.386207 43269.72414

According to the per capita income for the national statistics, the United States had an average of $53,001. The comparison according to the selected states highlights a significant point difference of almost $10,000.

Question 6

            A higher minimum wage explains the difference in per capita earnings between the 29 selected states and compared to the national average. The increase of higher minimum wages ensures that the number of workers employed is decreased in order for the employees to meet the standard. Therefore, if more workers are employed the per capita income gained is significantly reduced from the national average. In the above selected states, their minimum wages were lower as compared to the federal average, thereby there were more workers receiving wages. If the number would be decreased, more workers would meet the national per capita average.

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