Increasing Low Minimum Wage
Introduction
Over the years, there have been attempts to increase civic minimum wages. Even though the government failed to pass regulations about low minimum wage, most zones and counties have formulated laws that require $15 each hour. Low minimum wages captured the attention of a wider audience due to their extensive impact on society. There is a need to increase the minimum wages per hour and ensure to reduce poverty rates in most parts of the world.
Arguments Supporting the Increase in Minimum Wages
Most of the people who support the increase in minimum wages assert that it will help to keep incomes at a higher level hence enabling workers to afford meals and live a decent life. The rising cost of living is rising thus increasing minimum wages is necessary for most workers. Proponents claim that the alterations are essential as they afford human being a chance to live a decent life (Lordan, & Neumark, 2018). Additionally, the chief argument is improving the living standards. The working population is made up of more subordinate workers with crude skills hence increasing minimum wages would tremendously reduce poverty levels within any country. For instance, the congregational reports indicated that an increase in the minimum wage would improve the lives of more than a 17million. This an indication that the majority of the workers are at the minimum wage level hence increasing their wages would insulate them from living an impoverished lifestyle.
A raised standard of living directly impacts government expenditures. Most families will be able to afford basic commodities hence the government will reduce the finances allocated to aid the poor people. More so, most companies are more likely to experience increased productivity due to motivated workers. Consequently. Productivity would increase the general wages of all the workers of the company hence the need to improve on minimum wage policies. Most the entrepreneur have taken note of the challenges they encounter due to low minimum wages (Hill, & Romich, 2018). For instance, low minimum wages prevent the workers from consistently working on attaining the goals of the company. Most of the time, the chances of keeping up with workers who only get paid minimum wage is difficult because they have to work more than three jobs. Thus, increasing minimum wages reduces employment turnover as workers can stay in one place. To some extent, increasing minimum wages play a vital role in the helping business build skilled workers who are reliable once they are called upon to work on certain projects.
Another argument posed for increasing minimum wages is the high inflation rates. Even though most employers increase the wages of workers, these increment fails to address and meet the needs of the workers in hard economic times. Economists claim increasing minimum wages should reflect on people’s lives. Due to the hard economic times, most workers are forced to pay more for basic and essential things such as food and rent (Neumark, & Wascher, 2015). Thus, minimum wages should be increased based on the needs of the workers. In terms of the impact low minimum wage has had on children, an increase would tremendously save the needs of children and attend to their every need. In the end, an increased minimum wage would decrease the rates of poverty among children. Also, the income one gets Influences their ability to look after children.
State which increased minimum wages experienced numerous benefits. For instance, the states did not depend entirely on governmental aids. Electorates and representatives throughout history that a $7 minimum wage is low (Gindling, 2018). Thus, an increase in the minimum wages implies that the levels of poverty stagnation will decrease. Since 1968, minimum wages have lost more than a quarter of their value. Period to increase minimum wages has to be done on time and promptly.
Most of the people against the increase in minimum wage claim that it is not effective enough in reducing rates of poverty around the world. For instance in Canada, people earning a minimum wage can afford homes and live comfortably (Gindling, 2018). Also, most of the people earning a minimum wage are teenagers who do not have numerous responsibilities at their disposal. Thus, policymakers claim that people earning a minimum wage have more than one option. For instance, people working a low minimum wage job need skills. However, researchers and economists claim that most business enterprises can increase the minimum wages even if it means decreasing the hiring rates.
In summary, increasing the minimum wages would increase the economic activities of a certain nation hence triggering job development. Increasing the minimum wage would naturally inject billions of dollars into the economy hence generating more jobs in less than three years. Economists have confirmed that average domestic expenditure would improve gross domestic production due to more expenditure in the food industrial sector. Opponents usually rise in minimum wages would reduce the workforce of most companies as they cut on expenditure hence higher rates of unemployment. However, the government has to put up policies that force companies to increase minimum wages based on their earnings and taxes.
References
Gindling, T. H. (2018). Does increasing the minimum wage reduce poverty in developing countries?. IZA World of Labor.
Hill, H. D., & Romich, J. (2018). How Will Higher Minimum Wages Affect Family Life and Children's Well‐Being?. Child development perspectives, 12(2), 109-114.
Lordan, G., & Neumark, D. (2018). People versus machines: The impact of minimum wages on automatable jobs. Labour Economics, 52, 40-53.
Neumark, D., & Wascher, W. (2015). The effects of minimum wages on employment. FRBSF Economic Letter, 2015(37), 1-5.
