Essay The Living Wage Movement

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The Living Wage Movement

The living wage movement is an economic reform movement that has become one of the most important public policy issues that has come up within the last 10 years. Although there is no single definition, it is often defined as an hourly salary that allows working families of four to have an income that is above the federal poverty line. This means that the livable wage laws often stipulate that hourly wages should be two to three times above the federal Mininum wage. However, unlike the Mininum wage, the living wage has so far only been enacted on the county and city level. Cities and counties enforce the living wage for companies that have contracts with their respective cities and counties, receive subsidies
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The proponents of the livable wage take for granted how well our economic system works. They see the livable way as a solution that will some how magically cure urban poverty without imposing too many burdens on business. The livable wage will help some poor people make more money, but it also has so many consequences that hurt societal welfare even more. The reason why the livable wage creates so many problems is because it goes against the American ethos of capitalism. Capitalism is the guiding spirit of American society. It allows businesses to make their own choices in order to produce the greatest profits. This motivation to achieve profits has allowed America to grow strong. Telling business the optimal wage for their employees goes against capitalism. Business should have the right to make their own decisions based on profit because this system of centrally managed allocation of resources is inefficient compared with capitalism.

The belief and implementation of free markets and pro-business policies have allowed the American nation to become the strongest country in the world. The entrepreneur is a special type of business person that is hurt by the livable wage. Our nation’s economy is diverse and adaptable because entrepreneurs are always willing to take risks to make money and stay competitive. Entrepreneurs act as the catalysts for the American economy. They take the capital risks to create new products,
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