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All right, we're doing problem number 22 from chapter 4.
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It's saying, suppose that a 5 % increase in the minimum wage causes a 5 % reduction in employment.
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How would this affect employers and how would it affect workers? in your opinion, would this be a good policy? so let's write it out.
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Wages go up by 5%.
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And we'll say e for employment goes down by 5%.
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So it wants us to assess this policy from 2 %.
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Standpoints from that of employers and that of workers.
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So for workers, for workers, what happens? well, for 95 % of them, whoops, 95 % it's good, right? because they're getting more money.
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They're getting 5 % more money.
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But for 5 % they're losing their jobs because employment is cut by 5%.
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And that's really bad.
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That's really, really bad...