Essay on Pros and Cons of Minimum Wage

701 WordsNov 9, 20083 Pages
Pros and Cons of Minimum Wage The argument for minimum wage has remained remake consistent over the years. Some people are against minimum wage and the other think minimum wage can help you in a certain way. In the midst of the Great Depression, the Unites States federal government passed the Fair Labor Standards Act. The law has been amended almost every year to expand coverage of the wage floor and to increase the wage itself. Many of the fifty states have enacted their own minimum wage laws, some of them set even higher than the federal level. Minimum wage jobs don’t only help adults at hard times it help teenagers and college students. I learned that the proponents for minimum wage believe the raw value of one’s labor to a business…show more content…
It was mentioned the standard capitalist argument against a minimum wage has come under empirical attack lately and it must be said there is no consensus on the matter. The law of minimum wage interferes with the law of comparative advantage and monopolizes the affected labor markets in favor of the higher-skilled laborers whose labor is worth the higher wage. Some argue that the effect that the minimum wage is merely a huge, hidden tax paid by small minority. On other hand employers chose other methods than simple layoffs to offset the added cost of more expensive workforce. The theoretically include hiring fewer employees in the future not replacing all employees who resign, retire or are fired not making capital expenditures to improve their business raising price on the goods and services they offer and decreasing the number of hours worked per employee. The moral argument against minimum wage is based on the ideas of self-ownership and freedom, grounded in the ethical concrete of self-interest. One of the most interesting things I discovered while researching this topic was the historical nature of the argument. Some empirical studies appear to lend weight to the claim that these laws don’t cause unemployment, but they aren’t comprehensive enough to fully gauge the

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