The Concept of Minimum Wage

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The concept of minimum wage is something that can provoke debate between economists and politicians, as well as generating controversy among the general population.

Minimum wage has been a hotly contested subject for years. The problem with minimum wage workers of purple mcdonough ga is that it doesn’t account for regional differences in living costs and the cost of living index. And even though there are arguments to be made for either side of this issue, there are some points in favor of raising it to offset these discrepancies, and arguments against doing so when it causes an unintended consequence such as higher unemployment.

1. The Opposite to Minimum Wages are Not the Zero-Wage Policies

If the minimum wage is set too high, the problem isn’t that it’s too low, but that it’s set too high. If the minimum wage were to be increased enough, the price of goods and services would rise to such a degree that those who argue for its removal wouldn’t have anything to complain about. Economics 101 tells us that if you increase any quantity, what happens is this:

However this is not always true. In some industries output increases while in others it drops. If minimum wage is increased without taking this into account, some employers may be forced to pay their workers less. The matter at hand isn’t whether or not minimum wage should be increased, but how much over which there should be a consensus.

2. Who Should Pay?

One thing that many critics of minimum wage do not take into consideration is that in many cases, it would have been the employer who set the price in the first place. It’s estimated that the largest portion of U.S. workers are part time and would have probably been unable to survive on a salary of less than $10 per hour if they had had to do so alone for all or most of their lives. A minimum wage of $10 per hour is more than fair, if it means you can provide for yourself and your family, let alone when you are able to supplement that income with additional ones.

Instant Gratification

Low wages cause people to spend what they have in the present. With rising prices of food among other products and services, such as health care, this could cause a massive wave of inflation which would prolong the economic crisis. Raising the minimum wage will allow people to spend less money on things like fast food and junk food, which normally cost very little. This move is also a move toward healthy diets which in turn reduces healthcare costs from chronic illnesses associated with long-term dieting.

3. Who Should Pay for the Implementation of Minimum Wage?

Critics of minimum wage will argue that raising it would be the government’s responsibility to implement a minimum wage, which would come at a massive cost. However, if this is what is necessary to ensure that those who are employed are compensated adequately, then I feel it should be implemented. If employers are unwilling to pay their workers enough money so as to cover the cost of living, then they can be held responsible for incorrect calculations of wages and worst case scenarios. If a business cannot afford to pay its employees enough money so as to cover the expenses associated with food and shelter, then they should either raise prices or hire more people at reduced wages.

4. Free Market Solutions

A final point to make on the issue of minimum wage is that there are alternatives to raising it, but these have not yet been fully implemented, which is why I feel it’s important for us to consider raising it instead. Free Trade Agreements will allow us to import more products at a reduced cost, allowing us to cover our expenses without having to rely as heavily on workers’ wages. We also need to streamline our workforce by eliminating redundant and inefficient duties within positions and reducing hiring rates. Both of these measures will help businesses save money while increasing productivity. Employers should be able to provide more compensation for their workers without having a negative impact on the value of the currency in which their business runs.

5. A Matter of Perspective

Paying any salary to anyone is a business decision that many employers would prefer to avoid. A person’s life, however, is not as simple as that of a business. We can’t simply put a cost on human life and expect people to work for less than what is necessary for the upkeep of their lives. If you earn $10 per hour and are paid once per month, you will receive around $800 per month. If you spend $800 per month, the consequence could be trying to load enough food into your shelves to feed yourself and your family, or the very real possibility of a catastrophic illness which leaves you in need of more money for medical attention. If you are fortunate enough to live in a country where the cost of living is low, then adding $10 per hour may not seem like all that much. But with rent being two-thirds of the average American’s income it is substantial.

People get really upset when they see someone who is living better than them, and they claim that they have “more” than they should. But people shouldn’t try and put a price tag on things like happiness and purpose.

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