The Positive Effects of Minimum Wage on the Economy
Throughout the years, minimum wage has become an issue that has been viewed in a more negative way. There are many positive effects, but positives are being outweighed by the negatives, with the many important effects of the positives being overlooked. The economy, along with individuals, have benefitted in more ways than one. Minimum wage opens up the opportunities of jobs being offered to those who would not otherwise qualify for the higher paying jobs, which require college degrees (Characteristics of Minimum Wage Workers, 2012).
These individuals remain at the bottom of the pay scale and they are given the opportunity to make their contribution to the economy, while at the same time, providing for their families, and improving their skills, allowing them to become less dependent on the government for assistance. Minimum wage is not necessarily discouraging, as it does have many positive effects on the economy.
1- Create jobs for labor forces. Working minimum wage does not always mean the worker is not qualified for a job, it sometime means they have the skills to get the job done but they do not have the qualifications to get them a higher paying job. Since they have the qualification to complete the jobs, a company could hire more minimum wage workers for less than what they would pay someone in a higher pay grade. That way they can get the work done faster at a cheaper rate, therefore increasing productivity. (Fitzpatrick, 2009)
Increased productivity could mean more business, which means more money. When a company increases productivity and makes more money, it can create more jobs. This would be good for the economy because increased productivity means an increase in Gross Domestic Product (GDP). Goods produced by the country could mean more money for the country, which helps to fund education, provides healthcare and other benefits. This would also get other countries interested in investing in their stocks. (BEA, 2007)
2- Less people depend on
These individuals remain at the bottom of the pay scale and they are given the opportunity to make their contribution to the economy, while at the same time, providing for their families, and improving their skills, allowing them to become less dependent on the government for assistance. Minimum wage is not necessarily discouraging, as it does have many positive effects on the economy.
1- Create jobs for labor forces. Working minimum wage does not always mean the worker is not qualified for a job, it sometime means they have the skills to get the job done but they do not have the qualifications to get them a higher paying job. Since they have the qualification to complete the jobs, a company could hire more minimum wage workers for less than what they would pay someone in a higher pay grade. That way they can get the work done faster at a cheaper rate, therefore increasing productivity. (Fitzpatrick, 2009)
Increased productivity could mean more business, which means more money. When a company increases productivity and makes more money, it can create more jobs. This would be good for the economy because increased productivity means an increase in Gross Domestic Product (GDP). Goods produced by the country could mean more money for the country, which helps to fund education, provides healthcare and other benefits. This would also get other countries interested in investing in their stocks. (BEA, 2007)
2- Less people depend on