Advantages of Minimum Wage
• Reduce the income gap between poor and rich
Minimum wage helps to close the income gap between the rich and poor. Although the society still has a significant difference, the minimum wage at least puts a floor in the gap so it does not develop wider. Narrowing this gap is important to maintaining a population with equal freedoms.
In the short term, minimum wage is not effective to reduce the income gap between poor and rich. But in the long term, because of minimum wage, employees can satisfy their basic standard of living, thus their children can concentrate on their studies. Then they will not be low-tech employees who will fight for more wage and position. Therefore, their family will be out of poverty level.
• Protect employees’ wage and dignity
In a high unemployment rate circumstance, employees cannot be able to negotiate with employers about their wage and benefits, thus employers beat down employees’ wage and benefits. Therefore, if government establishes minimum wage law, that can prevent this condition.
• Increase standard of living for lower earners
Minimum wage can help low earners gain a higher standard of living, because they can gain stable wage.
• Maintain social stability
Minimum wage protects low earners’ wage that might able to decline the possibility of social problems caused by low income, for example family violence.
• Improve economy development
Because employees gain stable wage, that can increase their purchasing power. Therefore, that can able to improve each of industries development and increase employment opportunities.
Disadvantages of Minimum Wage
• Increase the cost of business
If government establishes minimum wage, enterprises will increase the cost of business, which will generate many social and economy problems.
• Increase unemployment rate
Because minimum wage increase the operation cost,...
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