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What are the advantages and disadvantages of the minimum wage for workers
What are the advantages and disadvantages of the minimum wage for workers
What are the advantages and disadvantages of the minimum wage for workers
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Minimum wage employment is still the reality for many around the world. The minimum wage law is designed to impose an enforceable standard on employers that would guarantee a minimum level of income for unionized workers. More than 90% of all countries have a form of minimum wage legislation that is helpful to workers. The benefits that come with having minimum wage laws is that it serves as an employment incentive to unemployed workers, allows working parents to support their family and helps businesses to budget. One of the positives that comes with having minimum wage laws is that it acts as an employment incentive. Minimum wage laws allow unemployed individuals incentives to take a job opportunity because they know what their minimum pay will be beforehand. Individuals seeking for a job will therefore have an advantage as they will have the opportunity to compare the money they would receive from other jobs to the minimum wage. This would allow individuals in need of a job to determine the final incentive and the perks of taking a job. Individuals knowing what their minimum pay will be beforehand also helps to prevent abuse by employers asking employees to work long hours for an unsatisfactory amount. …show more content…
Minimum wage laws are beneficial to workers because it helps support families. Nearly 25% of the minimum wage earners in Canada are working parents. Without having a minimum wage law in place these workers may be forced to work for less money, which would not help support their family and could further result towards putting the family into debt. Considering that a huge number of minimum wage earners are working parents and are raising a family, a minimum wage law is greatly beneficial to
When the question is asked "Who benefits and who loses when it comes to the minimum wage" there are really 2 ways to look at it, the short term effects and the long term effects . While the minimum wage laws usually aim to prevent poverty among lower income earners sometimes it create it rather than help prevent it.
Minimum wage is something that maintains the stability of a states economy. Minimum wage is regulated by the provincial government where the most minor of changes creates an exponential ripple effect through both local and international economies. A minimum wage is the wage that is able to provide not only for bare physical needs but also for preservation of efficiency of workers plus some measure of education, health and other things. Like it’s stated above, minimum wage has ties to many other things other than income, such as: education, healthcare, economic statuses and stability, worker efficiency and overall family life. Cost of living is the level of prices relating to a range of everyday items. Left unrelated, the impact of Ontario’s minimum wage not being coupled up with its cost of living can leave not only the economy in detriment, but other social factors as well including, education, healthcare, economic statuses and stability, worker efficiency, family life also increasing the chance of riots, revolutions and in an extreme situation, wars. Minimum wage is one, if not, one of the most crucial aspects of a country in order to maintain adequate levels of stability of a country or state.
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
One way raising minimum wage will be beneficial is that it could lift many Americans out of poverty. Raising the minimum wage in Illinois, would help the families of more than 1.1 million workers who work to meet their children’s basic needs and “reduce the adverse effects of poverty on a child’s well-being” (Fiscal Policy Center). Studies have shown that raising the minimum wage would help 1 in 5 Illinois families who are in poverty. By raising the minimum wage in Illinois, it would help workers with families spend money on food, housing, gas, and other needs without going into poverty. Along with puling Americans out of poverty, raising the minimum wage could also stimulate economic growth. Raising the minimum wage, is stimulating economic growth by worsening the income inequality and substantially reducing the employee turnover for the business. Increasing a person’s income would raise their yearly earnings by $3,640 and “Improve the economic security and reduce the economies poverty rate” (Fiscal Policy Center). Low-wage workers spend most of what they earn on their basic needs, which is quickly spent and does not leave the worker with much money left to spend on other needs. This boost in the minimum wage will stimulate the economy and help create opportunities for more people, by hiring more workers to keep up with the
There have been many arguments going on whether minimum wage should be increased. This action has its pros and cons. It can benefit many families as living cost has gone up, price for education is rising, and college students are in huge debts. Minimum wage has been around for ages. Minimum wage employment was a temporary condition for people to earn little payment until they moved on to a better paying job. These jobs helped build résumés, experiences, and skills for a better career. As years went on that idea began to demolish into a job that many families can get to survive and pay for their expenses. It has become the easy way for people to get easy pay.
In 1938, the United States Congress endorsed the first federal minimum wage through the Fair Labor Standards Act, (FLSA), which established a rate of twenty-five cents per hour. Originally the minimum wage only pertained to employees involved in interstate commerce, which consisted of the manufacturing, mining and transportation industries. But, in 1961 an amendment was passed to expand the minimum wage to other industries including construction, retail and service businesses. Since then, coverage has expanded to include close to 85% of the current workforce, and the wage rate has been increased 22 times. (Wilson, 2012). However, the minimum wage does not automatically increase in proportion to the cost of living because it is not indexed to inflation (Smith, 2009).
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.
Minimum wage was originally established to reduce poverty. It was also made up to do away with sweat shops and companies not paying minors and others a fair wage for Some policymakers may believe that companies simply absorb the costs of minimum wage through reduced profits, but that’s rarely the case. Instead, businesses rationally respond to such mandates by cutting employment and making other decisions to maintain their net earnings. These behavioral responses usually offset the positive labor market results that policymakers are hoping for.”
Minimum wage has been around for ages. Minimum wage employment was a temporary condition for people earning little payment until they moved on to a better paying job. These jobs helped build résumés, experiences, and skills for a better career. It has become the easiest way for people to receive easy pay. As years went on that idea began to demolish into a job that many families can get to survive and pay for their expenses. There have been many arguments going on, "Should minimum wage be raised or should it be lowered or eliminated altogether?" This action has its pros and cons. It can benefit many families as living cost has gone up, price for education is rising, and college students are in huge debts. It may increase poverty, but those
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.
On the other side of the argument Americans believe that with the increase of minimum wages it would help Americans out a lot more. One possible way that the increase in minimum wage may help an individual out is in the article Minimum wage Pros and Cons, “The Economic Policy Institute stated that a minimum wage increase from the current rate of $7.25 an hour to $10.10 would inject $22.1 billion net into the economy and create about 85,000 new jobs over a three-year phase-in period. Though this may be true, one problem
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.
Even if the is an increase in minimum wage, people will not lose their jobs they will just have fewer hours and still be expected to do the same amount of work. Overall, it is not beneficial to increase minimum
Depending on a person’s perspective, raising the minimum wage could be positive or negative. Minimum wage has the ability to change lives, and change the economy. Small businesses and unemployment, teenage demographics, and the cost of civilian goods would be most affected. The only mystery is whether things would change for the better or for the worse. Many areas could be affected by a change in minimum wage, but potentially the most drastic change would be to unemployment.
Last, many current minimum wage workers may be inspired to work harder at mastering their skill or educating themselves to become more productive members of society versus sitting back and waiting for another pay raise in the form of an increase to the minimum wage.