Each year thousands of workers complain that they are not getting paid enough. They want to be able to afford things other than the basic necessities. What they do not know is that if the minimum wage were to be raised, they would be a lot more likely to make even less money- 0$ an hour. The minimum wage has been debated for years. Some say that raising the minimum wage will lift people out of poverty and provide a higher standard of living for everyone.
In this days it is customary for countries to set a minimum wage for the labor market, this is a minimum amount that the employer can pay to the worker, this is a bottom limit to set the salary of each employee. Governments set this minimum wage determining the minimum income a worker can perceive or which is the lowest amount a company can pay their workers, this in order to try to regulate the labor market so employees do not become underpaid or companies’ abuse workers from their dominant position. But this minimum wage also has downgrades, as it can foment underemployment, informality or unemployment since the minimum wage could be higher than companies are willing to pay as such it needed to consider alternatives. Nonetheless, although
Even though the minimum wage workers will have more money on pay day, the rise of goods will cause inflation, and they will still not be able to afford anything. The Government should stay away from any kind of minimum wage policy. Raising the minimum wage might help the lower 20% of people of the nation
The main “common sense” argument is that by imposing minimum wages, one artificially raises the price of labour way from its “market-clearing” level and higher unemployment results-and the first to lose their jobs will be the least-skilled workers (city press;2014/11/25). The national minimum wage is a step towards an alternative growth path, in other words wages must be set to target productivity and efficiency. But it must be accompanied by other alternatives; such as industrial policy that sees that South Africa create jobs in sectors that can sustain moderately higher wages, and grow sectors that can benefit from, and contribute to, increased domestic demand (city press;2014/11/25). However national minimum wages promote equality, combat poverty and support economic development e.g. in Brazil during Lula’s tenure as president, the statutory minimum wage rose
Many people against raising the minimum wage argue it would raise the unemployment rate. Many argue companies wouldn’t be able to keep the same amount if workers, and half a million jobs would be lost (Minimum wage). This is not true, the extra money in customers hands would raise the economy enough to cancel out the extra costs, and actually create more jobs. Jobs might initially be lost, but in the long run, they will recover with a vengeance. In the end, when people say raising the minimum wage would lose jobs, it is a temporary loss that will recover within a year or
But yeah it is nice to have extra money by raising minimum wage but it is going to be the same thing overall, if not worse the bills are going to go up with it. Raising minimum wage could reduce the benefits you get such as insurance, vacation, and your future. Raising it as well means what about all the people that already have their worked their way to what the minimum wage wants to be set at. Do they expect them to stay at that same wage or go up as much as minimum wage raised. It is hard to raise the minimum wage therefore it shouldn 't.
That someone working forty hours a work could be so securely bound by poverty is unbelievable and unacceptable. Such scenarios, which afflict millions and millions of people, appear to violate the so-called “social contract” of the American Dream (Source 2), which posits that working hard guarantees a comfortable life with decent housing and basic necessities. Such a fancy is belied by the harsh reality of the minimum wage. Even progressive attempts to elevate the national minimum wage to $10.10 leave earners with a hourly salary with buying power “lower than what” $1.60 was worth in 1968 (Source 4). Here, the minimum wage is actually working against its goal; rather than providing a livable baseline wage to subsist upon, the minimum wage standard is being used as a lever for exploitation, with employers steadfastly refusing to pay much more than the merest amount legal.
The Cost of Living and Minimum Wage Increase Cost of living is the cost of maintaining a certain standard of living. A minimum wage is the lowest remuneration that employers may legally pay to workers. What do these two things have in common? When the cost of living is too high minimum wage won't suffice for a living. Unfortunately, the cost of living will always rise due to inflation.
For instance, from the article “The effects of minimum wage” by David Neumark states that employers will try to keep away from low-skilled workers if the wage were to increase because it would cause them to be wasting money to train them; especially for students and high school graduates who are in absence of any work experience. With minimum wage increasing for the past couple of years it makes it difficult on employers who run small businesses to hire more new workers because they too are also citizens that have to pay their taxes and extra just to keep their business up and running. Such as the author Gina Kim who wrote the article “Minimum wage: helpful or harmful for small businesses” states that 85% of small businesses pay workers a bit more than the minimum to keep their workers interested in the job and they have to make profits out of their business to keep it on track. These businesses cannot innovate if the wage increases because then the labor market will pick up the prices on materials as well creating more of a problem for small business owners to keeping their company open for as long as possible and their solution would be to not hire a lot of employees. This pretty much explains the reasoning about how it will be troublesome for new fresh workers trying to just gain experience and get hard earned
Conservative economists view the minimum wage argument as a series of points on a chart. If labour costs go by x, profits will decrease by y. The reason this point fails is that workers are not robots who react the same to inputs and outputs. They are humans with feelings and emotions are reacting to changes in their environment differently. That is the heart of the liberal perspective on increasing the minimum wage and paying employees more will not just help workers but business owners and the population at large.
The New York Times states, “Employers do not automatically cope with a higher minimum wage by laying off workers or not hiring new ones. Instead they pay up out of savings from reduced labor turnover, by slower wage increases higher up the scale, modest price increases or other adjustments” (4). It would not make sense for businesses to raise prices for consumers because the possibility of losing sales is very real. That argument, that raising the minimum wage would hurt consumers, just furthers the negative sentiment people have towards this topic. Numerous studies have shown that employment increases from the state and federal level had an overall positive effect on employment (Whitaker et al.