Advantages And Disadvantages Of National Minimum Wage

If this is indeed the case, the raising of the minimum wage does not positively affect the poor, but reduces the ability of the poor to purchase the necessary items needed to survive. If the employer must increase the wage of its entry-level workers, there is virtually no chance they will be increasing the wage of the workers just above the minimum wage level. Therefore, the increase in the minimum wage will reduce the buying power of the poor family by increasing the cost of goods required to

A firm’s operating costs can also be increased by changes in legislation which can lead them to seek cheaper alternatives elsewhere. For example labour laws will need to be thoroughly scrutinized. Increases in the minimum wage in the UK has contributed to UK firms looking to exploit cheap labour whereby in 2003 companies such as BT took the decision to shift all of their call centres to India (www.bbc.co.uk/news). Another such protection is foreign ownership laws e.g. the Australian “Broadcasting Services Act 1992” does not allow any more than 20% foreign ownership of a broadcasting firm (www.austlii.edu.au). Taxation of foreign firms is also another cost to consider.

What barriers to trade would prevent an American company outsourcing to one of those countries?

The issue of the minimum wage has recently come to the forefront of the debate on social policy. There is much disagreement over the wisdom of an increase in the minimum wage in the current fragile economic recovery. Some argue that a dramatic increase is what is needed in order to lift the standard of living for those in the bottom of the economic pyramid. Economists reason that the basic principle of supply and demand mandates than an increase in the wage would result in the loss of available jobs. Small businesses maintain that it would spell their doom.

There has been many conversations about what the positive impacts can come to America 's lowest income workers as a result of an increase in the minimum wage, and there has also been equally as many discussions over the negative effects the increase can have on similar people. This paper’s purpose is to combine each viewpoint and objectively analyze the arguments for and against an increase in the minimum wage. I will first discuss the benefits for an increase, then the disadvantages, and in the last paragraph, I will

Labor is an important service that must be available and balanced in an ever growing population. For example, there cannot be a larger number of residents than there is labor or else there will be a definite increase in poverty. In the United States, there is a set law of minimum wage, which has an effect on companies and how they manage their labor force. The increase of the minimum wages affects the overall distribution of hours available, therefore, hurting the amount of labor needed. Conversely, minimum wage also has a major effect on those who recetly entered the workforce. If the minimum wage rises, there will be an increase of the unemployment rate. Correspondley, as the unemployed suffer, the first to be affected will be incoming laborers who are looking for jobs and work experience which is essential for their future. However, the upside of increasing minimum wage is that for those employed who keep their jobs they will earn more income which may increase the

To analyse and draw conclusions on minimum wage in relation to its standing in business law, we first of all need to define what the meaning of the term is. National minimum wage was introduced in 1998 through the national minimum wage act. This enforced that employers would pay each employee a set value set by the government per working hour. One of the main benefits of this was that the most low skills jobs within society received a fair wage. Setting the price of minimum wage is a complex task as the main priority is to reduce the negative effect on the labour market, creating benefits outweighing the costs. Inflation and minimum wage have a very close relationship, with inflation being the annual increase in the price of goods and services. As inflation rises, it is natural for minimum wage to follow at a similar rate. In october 2014, minimum wage increased 3%, whereas inflation increased 2%. This shows an improvement in the real term income for over 1,000,000 of the lowest paid workers in Britain.

According to the U.S. Census Bureau, nearly 14% of the nation lives below the poverty line, the current population is 326,474,013, and 45,706,362 of the population lives in poverty every single day. One of the reasons why such a large chunk of the population is in poverty is because they are not being paid a reasonable salary for them to support themselves and their families. Raising the minimum wage can lead to problems, but gradual increases are made over time, it could be beneficial for millions of people around the nation. The positive effects of raising minimum wage is what makes it worth it. A raise in minimum wage can be beneficial; however, it must be a

First reason, raising the minimum wage would help many employees out of poverty . For

There will be inflation or rising costs for basic necessities such as housing, food, utilities, transportation and child care. Because of inflation, the minimum wage forces most of the people into poverty. If a person works full-time and his minimum wage is only $14500, and if he has two children this income is more than $4000 below the poverty line. So, increasing the minimum wage would rise almost a million people above the poverty line. But if minimum wages increases, it would result in the loss of jobs because employers would lay off workers to offset the additional labor cost. But, raising the minimum wage has multiple benefits. As an increase to minimum wage moves families above the poverty threshold, their need for public assistance

By creating new jobs for more people this also raises the economy from where it’s at by a large number because the bigger circulation on money. Minimum wage would maximize the political stand point of many issues. Raising the minimum wage level would greatly impact the job field for Americans bringing higher salaries. Bumping up the minimum wage would lower the number of people who are effected by money because they either do not have a job or they don’t make enough money (Minimum Wage, Maximum Politics."

Proponents of raising the minimum wage claim that if the minimum wage was raised, then many economic and social problems would be alleviated. This contention is at odds both with economic principles and years of creditable research. The effect of raising or even having a minimum wage has been studied extensively and the majority of studies have proven that raising a minimum wage does not have the desired effect. Both micro and macroeconomic forces affect the results of raising the minimum wage. The secondary effects of raising the minimum wage are bad both for

There’s a very simple solution to a increasing poverty level, a raise in the federal minimum wage. People who live at or below poverty level did not have the opportunity to develop job skills, build an education, or invest in financial assets. The little opportunity given to the low poverty populate is due to the absence of a low income, and how many of them could only afford a minimum wage job. If an increase of minimum wage was given, many low income workers could develop skills, that could help them progress in their career. Once these workers succeed in their career, one could hope that they will go on a earn a education, or build their financial assets. These financial assets include loans, savings accounts, and the purchasing of houses or other expensive items. An investment of these financial assets will led to an overall boost in the surrounding economy and crime rates in the area. A federal wage increase has many benefits compared to cons, these benefits include: helping the life of low income workers, who make up most of America, and the overall boost of the economy and the area surrounding it.

Structural unemployment may occur in the short term with the removal of trade barriers. This will have impact on large numbers of workers, as well as their families and local economies. In growth industries workers often will have difficulties to find employment.

3- The develop countries will solely Depends on the outsiders for majority of its economy, this put pressure on both company and the hoist country.