The economy and its impact on society have always been a theme of study throughout the development of humanity. Due to the vast technological, intellectual and political advancements, as well as the exploitation of natural resources, especially over the last three centuries, certain regulatory measures have been established in order to maintain the balance between economic and social changes . The link between economy and society is so sensitive to change that any action in one or the other will have an implication in the other. As an example of the previously mentioned regulatory policies and their consequences on the population, price floors such as the minimum wage play a determining role in labor activities and business planning. Even though minimum wage laws theoretically aim for "a level of economic equality, rather than having large numbers of underpaid or poor citizens" (Vitez), the base wage results in a labor surplus. work and therefore unemployment. Say no to plagiarism. Get a tailor-made essay on “Why violent video games should not be banned”? Get an original essay When an increase in price floors occurs, for example an increase in the minimum wage, the unemployed population tends to start applying to employment opportunities and the employed population is inclined to seek a salary increase or a better paid job. This is a response to the distortion of the labor market caused by the shift in its balance, which implies a possible increase in people's willingness to work; therefore, excess work will appear. Given the increase in the minimum wage, small business employers “must hire fewer employees or reduce their workforce to comply with the minimum wage law, which directly impacts unemployment rates” ( Owen). In theory, if there is an increase in the workforce, then companies should have more choices for hiring in the labor market, which implies the possibility of hiring more experienced staff. On the other hand, as E. Owen argues, employment opportunities will decrease in order to counteract and balance the marginal cost to business of increasing wages, which leads to increased unemployment. “Employers prefer to hire talented young people rather than less qualified young people. adults” (Garthwaite). In these circumstances, not only are fewer people hired, but also a company's current employers may be fired if they do not meet skill requirements. The labor market opens up a replacement space in which unskilled or less-skilled workers are replaced by highly skilled people, given the need for industries to optimize their predetermined labor budget. Additionally, some workers seeking higher pay may end up leaving their jobs but remaining unemployed due to low employee demand. At the point when demand for labor contracts and labor surplus occur, the difference between employers in demand before the wage increase and current employers after the increase results in the total new people classified as “unemployed”. Some will argue, like Aaron Pacitti, associate professor of economics at Siena College, that “businesses can offset rising labor costs by raising prices.” This solution seems reasonable and could perhaps be a possible solution in specific market cases. Nevertheless, of..