In a recent speech, the governor of your state announced: “One of the biggest ca

Question

In a recent speech, the governor of your state announced: “One of the biggest causes of juvenile delinquency in this state is the high rate of unemployment among 16 to 19 year olds. The low wages offered by employers in the state have given fewer teenagers the incentive to find summer employment. Instead of working all summer, the way we used to, today’s teenagers slack off and cause trouble. To address this problem, I propose to raise the state’s minimum wage by $1.50 per hour. This will give teens the proper incentive to go out and find meaningful employment when they are not in school.” Carefully Evaluate the governor’s plan to reduce juvenile delinquency.

Explanation / Answer

Despite the good intentions of the governor, this plan might not be sucessful in reducing juvenile delinquency. This is because due to increase in the miniumum wages, the firms will demand less teenage labor. This will cause the problem of unemployment instead of giving the teens  the proper incentive to go out and find meaningful employment when they are not in school.

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