(The National Minimum Wage (NMW) is the minimum pay per hour most workers are entitled to by law. The rate will depend on a worker's age and if they are an apprentice. Any changes to the rate are normally introduced in October each year.The National Minimum Wage is the minimum pay per hour almost all workers are entitled to by law. It doesn't matter how small an employer is, they still have to pay the minimum wage. The minimum wage rate depends on a worker's age and if they're an apprentice.) A labor market is where employers and employees meet to exchange working hours for payment of wages. In the labor market wages are determined by the demand and supply of labor, for example if there is a decreasing population then that means that there …show more content…
It reduces poverty rates across the UK and other countries where this law is implied as people are getting payed more and it encourages more people to work. This positive impact means that governments won't have to worry that much about homeless shelters and areas for the poor to live. Also reducing slums and favellas in low to middle class countries. Finally, the nmw is good because it decreases suicide rates and a study shown on BBC shows that rates have decreased by 13.7% since the implication of the nmw in 1999. In the UK the NMW has help the whole country improve and move forward, by using the national minimum wage it reduces poverty and their for more people have money to spend and they will spend it in shops and the shops will grow their for making the whole mark grow Improving the countries economy. As their is advantages their is disadvantages, as the labor price increases many companies and shops have to reduce their labors because it would be to expensive for them and then they would have to take the extra cost of labor out of the clients pocket which leads to a less demand for the product which isn't good for the companies sales, their for many people will start going toward the black market and get employees for a cheaper price which is illegal but it a risk worth taking for some
Minimum wage is the lowest hourly wage an employer is legally permitted to pay an employee. Most employees are eligible for minimum wage, whether they are full-time, part-time, casual employees, or are paid on hourly rate, commission, piece rate, flat rate or salary. There are several different classes, which determine what minimum wage you will be entitled too. These classes are: General Minimum Wage, Liquor Servers Minimum Wage, Hunting and ...
Understanding the basic concept of minimum wage is important for every single individual. We all live in this world together and it is obvious that there is an order. In order to continue our lives and afford our basic needs, we all need to work and gain wealth. As the old adage says ‘‘There ain’t a such a thing as a free lunch.’’ We need to give up on something that we like to get something else that we like. That’s why, every single individual in the society face trade-offs. However, people have different status. Some people work as employees and some work as employers. In that case of minimum wage the trade off is between employees and employers. Employees work for employers in order to gain money and afford their minimal living expenses whereas employers give up on their money and pay for employees because employers take care of their need of labor. Employers pay for their workers who we call employees and employees gain hourly money. The calculated minimum money that they gain in an hour base called minimum wages. Besides, there is this cycle that everyone actually works
Minimum wage is a topic that has been popping up since the 1980s. From whether we should lower it, or even raise it, but now in the 2000s minimum wage has been the center of attention more than ever. There are two sides to this topic of minimum wage; whether it creates more jobs or does not create jobs. Those who argue that raising minimum wage will create more jobs will have a rebuttal which is that it does not only cause the loss of jobs but that it would make things much worse and vice versa for those arguing raising minimum wage will cause loss of jobs. There will be two authors representing opposite views, Nicholas Johnson supporting minimum wage will not cost jobs with his article “ Evidence Shows Raising Minimum Wage Hasn’t Cost Jobs”
In the article, “Let’s Make the Minimum Wage a Living Wage” by Ira Knight, he argues how the economy would benefit from a minimum wage increase and he uses a lot of studies to back up his claims. Janice Steele, however, argues that raising the minimum wage will hurt small business and job opportunity. She uses fear to influence workers into not increasing minimum wage by making large generalizations. The article “Let’s Make the Minimum Wage a Living Wage” by Ira Knight and the article by Janice Steele “Keep the Minimum Wage Where It Is” both had good points. However, Ira Knight makes a stronger argument.
What is minimum wage? Minimum wage is the lowest hourly rate (dollars per hour) that employers can pay their employees. According to minimumwage.com Minnesota’s minnimum wage is $7.25 per hour but will be getting raised to $9.00 per hour. Minnesota’s minimum wage is a common rate among many states such as Texas, South Dakota, and Iowa. Oregon and Washington are states that currently have their minimum wage rate set at or above $9.00 per hour. For both of these states, raising minimum wage has not necessarily decreased the poverty line. Both Oregon and Washington are still among the top 20 states for high poverty rates while New Hampshire has the lowest poverty rate and also has minimum wage set at $7.25 per hour.
Minimum wage is a difficult number to decide on because it affects different income earning citizens in different ways. According to Principles of Microeconomics, by N. Gregory Mankiw, minimum wage is a law that establishes the lowest price for labor that and employer may pay (Mankiw 6-1b). Currently, the minimum wage in the United States is $7.25 per hour. For many years politicians and citizens have argued on what should be the minimum wage that would benefit the economy and society in general. A minimum wage was first established in 1938 to increase the standard of living of lower class workers. To discuss what is better for the country and its citizens, people have to understand what is a minimum wage and what are its effects.
The definition of Minimum Wage is “an amount of money that is the least amount of money per hour that workers must be paid according to the law” (Minimum wage). Minimum wage, like other laws, are used to keep the economy in line. Minimum wage laws were invented in Australia and New Zealand with the purpose of guaranteeing a minimum standard of living for unskilled workers. (Linda Gorman) Minimum wage puts a price on the services one offers. Many different principles can be used to explain Minimum wage and explore the different aspects of it. Including what minimum wage does for our economy and the current status of it.
The minimum wage being too low has been a public issue in America for generations. Basically, the debate includes two different opinions. Firstly, people who want to raise the minimum wage, and second, people who would rather is stay the same. The overwhelming majority of liberals are on the side that favors a raise. Additionally, a somewhat smaller proportion of conservatives favor the change as well, but for different reasons. The liberal opinion on raising the minimum wage is based on the idea that putting more money in the people’s pockets, will stimulate the economy, and decrease poverty. The problem that conservatives and liberals alike have with this, is that a few direct consequences are proven to apply when raising wages. Some proposed consequences include unemployment, inflation, and unfairness to higher educated people. Another main point is that raising the minimum wage is thought to helps small business by increasing worker satisfaction. This issue of minimum wage has become increasingly popular and important in current times, as president Obama has proposed the idea of raising the minimum wage of contract workers to 10.10$ per hour (about a 30% increase from the current 7.25$ per hour minimum wage). A large number of people consider this wage hike unnecessary due to the fact that today’s value of minimum is higher than it has ever been since the 80’s, and because the wage hike comes at too high of a cost. All things considered, the issue of raising minimum wage is not a battle of political parties and their agendas, its really a debate between everyone.
For many people in the United States, life is no more than a regular work cycle. Members of working class usually have a High School diploma and may work in a low skilled occupation or manual labor. Most of the enjoying age of this people is spent in working, as they don’t want their new once to have a life they struggling through. Therefore, this essay will argue that minimum wage should be increased federally to $15/hour by 2017. Firstly, if taxes touches the sky, why should the minimum wage be on the ground? Increasing minimum wages would also create new opportunities for education as the students wouldn’t have to work crazy hours. Likewise, many couples won’t have to work multiple jobs in order to manage the household. Lastly, it will lift
... it. Another example imagine three competing coffee shops. All three need to make a certain profit margin to stay in business and make their effort worthwhile. Then they all three coffee shops will lower their prices as much as possible while still covering that necessary profit margin. If one of the shop tries to charge more, customers will simply go to the competitor shops. Wages are prices of labor, so the minimum wage is a price control. Like any price control, it has a ripple effect prices of other services and goods have to compensate. When an employer's labor costs go up, he has to lay off workers and/or increase the prices of what he sells.
On the 1st of April 1999, the National Minimum Wage (NMW) was introduced in the UK at a rate of £3.60 per hour for workers aged 21 and older, and at a rate of £3.00 for workers aged 18-21. Since then, it has grown steadily to reach a rate of £6.31 per hour today. The NMW is “the minimum pay per hour that almost all workers are entitled to by law” (www.gov.uk). In 1999, 1.9 million people were paid less than £3.60, sometimes even below the Living Wage due to the dismantling of unions by the Thatcher government. The idea of a minimum wage then came up, supported by the Labour Party, in order to reduce the increasing poverty and to prevent low wages workers from being exploited by their employers. The Conservative Party, supported by employers, was strongly opposed to this project, arguing that a minimum wage will damage the economy and create poverty due to higher unemployment levels. So, how does the NMW really affect poverty and employment in the UK?
While it is not uncommon for individuals with minimal income to have more health issues than those earning more income; however, an increase in wages could help minimize the cost of healthcare and medical prescriptions. (Qin & Chernew, 2014) The current minimum wage level compared to the poverty threshold, is inadequate to support minimum wage earners and their families. This is a phenomenon that has been lingering for decades, due to changes in the economy. Furthermore, due to the cost of healthier food sources, many low income workers cannot afford a healthy eating lifestyle.
A minimum wage is an hourly wage that is established by the government which represents the minimum amount an individual receives per hour. The federal minimum wage was established in 1938 under the “Presidency of Franklin Roosevelt” (Henderson). Currently, majority of the states have their minimum wage less than $10. However, the federal government wants to increase the minimum wage to $12 across the United States. The federal government believes that increasing the minimum wage will assist numerous people in the United States as most individuals are working in a minimum wage job to support their families. About “75.3 million people ages sixteen and over worked for hourly wages in 2008, according to the U.S. Department of Labor’s Bureau of Labor Statistics” (“Minimum Wage”). Meaning almost a quarter of the workforce of this nation are working a minimum wage job. Numerous people believe that these workers are not able to make their ends meet, and increasing the minimum wage will help these individuals substantially. Even though people believe that increasing the minimum wage will benefit the society, they tend to overlook the drawbacks of increasing the minimum wage, and how it will prove to be detrimental for the society.
For the past three decades minimum wage has been seen to rise several times. Only helping some but more than anything harming most. So who are the ones feeling the effects? Certainly not the wealthy, it never is them, mainly it would be the working poor, unskilled and teenagers. Raising minimum wage would cripple the public even more than what it would actually help.
Within each labour market the wage paid to workers will be determined by the forces of labour demand and supply...