A issue that we see today as a microeconomic issue is that of minimum wadges. This issue actually effects small businesses, as well as single house holds. "Transaction cost theory closely resembles an amend version of the microeconomic theories," (Tejesen, 2008). Student loans are becoming a macroeconomics issue, that no one really considers to be serious but it effects us all. It is a burden that students have, as well as the government, and many times even family members of the students. Many students find them selves as graduates without a job in the field they studied, and owning lots of money. The purpose of this paper is to analyze issues that effect our country today, and what the causes of these issue are. Also, the significance of this issues, and the cost and benefits they have on our society. Lastly, any solutions or recommendations that can help to avoid these issue as a whole, or prevent there consequences. .
The issue with minimum wage, and student loans is that they both hold down individuals from improving there personal financial goals. What is causing the minimum wage issue is that most individuals being employed are those with not that much education and that will work for minimum pay. This actually effects the second issue of student loans, because students who want those better paying job positions are stuck with high loan debts, then graduate only to find that someone else is doing the job for a lower pay. Minimum wage only helps those that are employed. Also, instead of decreasing poverty it actually increases it (The New York Times, 2014). "Unemployment effects of minimum wadge legislation, in low-wadge industries," (Mincer, 1974). Rather than decreasing poverty, minimum wadges will produce more unemployment. It will increase due to the fact that FLSA and other state regulations will make it more costly for businesses to hire workers. Neither of these issues are a fluctuation.
