Should the country implement minimum wage?
Should the country implement minimum wage?
In these years, with the effect of the worldwide economic depression, many people have lost their jobs and the unemployment rate is constantly high. At this stage, the implementation of the minimum wage has become an increasingly active topic. According to Joyce’s study (2012), the countries with a minimum wage generally have a higher economic output. However, other voices would argue that implementing the minimum wage could lead to an economic down turn (Bar, 2010). Good Therefore, the aim of this essay is to discuss argue that the minimum wage can be effective as long as it is implemented properly.
It is obvious that the implementation of the minimum wage could benefit the country’s economy in some situations. When the low income group people are given the minimum wage, they would have more disposable income and their purchasing power would be increased and they could buy more things, hence, the economics activity increases (Herring, 2006). In the long run, the economy would increase as well. As the economic growth occurs, many companies may more likely to consider about the expansion of their scales. Because of this, the employers need to employ more workers to meet the demand (Bor, 1998), at the same time, the employment would be increased.
The minimum wage not only contributes the economy, but also helps to close the gap between the poorest and the richest (Long, 2010). It is utterly unjust that factory owners have extremely high income but those that produce the wealth have to struggle on starvation wages (Lee, 1991).If the minimum wage is implemented, the poor could have a comparatively higher living standard than before. Therefore, minimum wage is necessary in respect of solving social issues.
On the other hand, the implementation of the base wage may not always be good for the economy. Some companies would not like to employ new people once they are force to pay a minimum wage (Riker, 1994).For companies,
In these years, with the effect of the worldwide economic depression, many people have lost their jobs and the unemployment rate is constantly high. At this stage, the implementation of the minimum wage has become an increasingly active topic. According to Joyce’s study (2012), the countries with a minimum wage generally have a higher economic output. However, other voices would argue that implementing the minimum wage could lead to an economic down turn (Bar, 2010). Good Therefore, the aim of this essay is to discuss argue that the minimum wage can be effective as long as it is implemented properly.
It is obvious that the implementation of the minimum wage could benefit the country’s economy in some situations. When the low income group people are given the minimum wage, they would have more disposable income and their purchasing power would be increased and they could buy more things, hence, the economics activity increases (Herring, 2006). In the long run, the economy would increase as well. As the economic growth occurs, many companies may more likely to consider about the expansion of their scales. Because of this, the employers need to employ more workers to meet the demand (Bor, 1998), at the same time, the employment would be increased.
The minimum wage not only contributes the economy, but also helps to close the gap between the poorest and the richest (Long, 2010). It is utterly unjust that factory owners have extremely high income but those that produce the wealth have to struggle on starvation wages (Lee, 1991).If the minimum wage is implemented, the poor could have a comparatively higher living standard than before. Therefore, minimum wage is necessary in respect of solving social issues.
On the other hand, the implementation of the base wage may not always be good for the economy. Some companies would not like to employ new people once they are force to pay a minimum wage (Riker, 1994).For companies,