Government Lags Voters on Minimum Wage: Krueger

The video discusses the surprising Republican victory in the midterm elections, the role of economic factors, and ongoing inequality issues. It covers the minimum wage debate, unemployment trends, and regional economic disparities, particularly between Philadelphia and Silicon Valley. The disconnect between equity markets and economic fundamentals is analyzed, along with the challenges of 401K investments. Finally, it addresses fiscal policy and deficit reduction strategies.

What was surprising about the Republican victory in the midterm elections?

• The election results were evenly split between parties.

• The Republican victory was stronger than anticipated.

• The economy played a major role in the outcome.

• The Democrats won more seats than expected.

What is expected to happen to wages as the economy improves?

• Wages will remain stagnant.

• Wages for production workers will rise faster.

• Wages will only increase for high-skilled workers.

• Wages will decrease due to inflation.

What is the current status of the minimum wage debate?

• It has been resolved with a national increase.

• It is no longer a topic of discussion.

• It has been settled with a decrease in minimum wage.

• It is ongoing with a disconnect between state and national policies.

What major issue arose from the financial crisis five or six years ago?

• A decrease in economic inequality.

• A rapid increase in employment rates.

• An immediate recovery of the economy.

• A significant long-term unemployment problem.

How is Philadelphia's economic situation described?

• It is unaffected by educational challenges.

• It has no economic divides.

• It is experiencing an energy renaissance.

• It has a low unemployment rate.

What is a key challenge with 401K investments during economic downturns?

• 401K investments are not affected by market changes.

• People tend to invest more during downturns.

• 401K investments guarantee high returns.

• People often withdraw funds, which is not ideal for long-term planning.

What is the relationship between Silicon Valley companies and job creation?

• They have high market caps but limited job creation.

• They create a large number of jobs.

• They are the primary source of employment in the U.S.

• They focus solely on manufacturing jobs.