THE SITUATION
In San Francisco, the fear of losing jobs to automation after an increase to the minimum wage has motivated two similar policy proposals aimed at discouraging or banning automation. As a student of economics and someone who will soon enter the job market, you find this issue interesting and relevant. [For simplicity, assume these policies are only occurring in or are only proposed for the San Francisco area. Also assume the ban is for automation in general, not just delivery robots.]
THE PROMPT
Write a letter to the San Francisco Board of Supervisors regarding the two policy proposals under consideration: a tax on automation (Ms. Kims proposal) or a ban on automation (Mr. Yees proposal). Your letter should:
Briefly explain the economic impact of a minimum wage increase (moving from nonbinding to binding) in the labor market, and its extended effect on the automation market as well as the market for a good which may be produced using labor, automation or some combination of the two;
Identify one of the two proposed policies and construct an argument, based in the economics youve learned in class, for why you oppose the policy.
You, personally, may oppose both policy proposals, but your paper should focus on only one policy, given the word count limit.
Your argument of opposition should not be based in your support for the other proposed policy.
While your letter is a normative economic assessment, majority of the letter should consist of positive economic analysis. [While you may have strong opinions on this subject based in moral or ethical reasoning, the purpose of this assignment is to see your ability to use the economic tools youve learned to analyze the situation.]
Explain the economic impact of this policy proposal on these same markets, highlighting the economic reasoning for opposing the policy;
Start your analysis assuming the minimum wage increase already occurred.
Be persuasive.
