Should the Minimum Wage Be Increased?

The minimum amount of money that must be paid to an employee by an employer in hourly basis, regardless of employee’s post or qualification, which often fixed by government authorities is known as minimum wages of that country. Currently federal minimum wages in United States is $7.25 which was last set at July 2009. Every year there is a huge debate at our country about raising minimum wages. Increasing minimum wage obviously has massive effect on the country’s economy and its people. Some experts say that, raising minimum wages can improve the life style of those employees who are under the poverty line. They believe that by raising the minimum wages net income of the working class will increase and helps to keep the financial balance in between the management level and the operational level employee. In contrast, there are other people who think that by rising the minimum wages can have negative effect is country’s economy since company can hire low number of staff to keep expenses low, resulting massive unemployment population in the country.
Some economist says that with their research they have found that actually increasing minimum wages may not have the positive impact in country’s economy, and might not have positive impact on its people either. According to them, the quantity of labor demanded increases as the price of labor falls. What it means, a company can hire more workers in order to make more profit from the workers at lower price. By increasing minimum wages, youth and less skilled worker will have less chance to get the job since only skilled worker will be preferred by companies to pay the minimum wages. So the country could end up with large number of unskilled unemployment population.
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To achieve better performance from the employee, company and Nation itself, government should raise the minimum wages as necessary but every aspect of the financial criteria of the company and its staff should be taken into careful consideration. The country’s first priority should be its people and then company. The government must have some support plan for the native company over the foreign company. Government should not only increase the price of the goods and services but it should focus on how to balance the economy equally, that is either increasing the price for everything including the minimum wages or decreasing the prices of everything. As seen in past few years, the prices for everything has gone up except the minimum wage, so, now it’s time to raise the minimum wage for the people of the country to increase the standard of their life.