Positive Effects, What Is The Minimum Wage?

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Minimum Wage
INTRODUCTION
This is an argumentative essay which will talk about the minimum wage in society and its effects. It will start by introducing what the minimum wage is, it will then discuss the positive effects and negative effects of raising minimum wage, then conclude with my stand on the topic of discussion.
So, what is The Minimum Wage?
Minimum wage is the lowest remuneration that employers can legally pay their workers. This is a policy that aims at protecting workers from exploitation by their employers. Even though minimum wage laws are in use in many authorities, different judgments exist about the disadvantages and advantages of a minimum wage (Meer, 500). In this paper, I will start with the positive effects of a raising minimum wage in society.
Positive Effects
Increase in the minimum wage will see growth in the economy. This is achieved through a rise in the spending habits of the people. Individuals with low income will not have an elevated marginal readiness to consume. The effect of this is that it will boost the economic growth in such a way that, the higher the spending will cause a ripple effect on economy elsewhere. Needless to say, the more the workers are paid the more the money they spend on product and services.
With the rise in the minimum wage on regular basis, people will be able to be at the same pace with changes in inflation. By so doing, people purchasing power will not reduce. Poverty levels will reduce due to an increase in the minimum wage since the lower paid people will have more to spend hence reducing their poverty levels. If the country is using a progressive tax system, the higher the pay to the workers will see increase in the tax revenues. An increase in tax revenues will cause the country to be more stable financially hence better services to its citizens.
Higher wages and spending caused by increase in minimum wage, will raise demand for products and services hence create more jobs. For example, an increase in demand for a particular product will necessitate increase in production of that product. The effect of demand of the product will lead to an increase of workers to produce more products. New companies may arise as they are trying to meet consumers needs creating jobs for people.
Businesses will gain more income with the an increase in the minimum wage. Costs for hiring and training new employees will reduce, as the employees will stay for a longer time with the employers. Better paid workers have no reason for moving from one employer to the other seeking for better pay. The government will also save more revenues to develop other sectors of the economy. Highly paid workers will rely less on governmental “safety net” programs which will enable the government to channel the money to other sectors of the economy.
The productivity of the firms will be able to increase. As the minimum wage increases, the number of job seekers will also increase dramatically which will give companies an opportunity to pick the best workers. The more qualified the worker will be proportional to the quality of work he or she will render to the firm increasing the firm productivity.
Negative Effects
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