Top-Rated Free Essay
Preview

Advantages of Minimum Wage

Good Essays
827 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Advantages of Minimum Wage
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, enterprises may be unable to afford to employ as many workers and may cut down employees for reducing the cost and employees’ work load will be increase.

• Generate price inflation Enterprises or small businesses increase the cost because of minimum wage, they begin to try and regain the profits. They may reduce products quality, but more commonly they will pass the added expense on to the consumers causing the products they produce to cost more at the store.

• Decrease employment opportunities for teenagers or disables Because teenagers lack of working experience, so businesses are willing to pay a lower wage for teenagers. But if government establishes minimum wage, businesses would rather hire more experience workers than teenagers or disable that will decrease employment opportunities for them and generate many social problems.

• Decrease small businesses development When businesses need to pay their employees minimum wage, this can make it difficult for the business to grow and expand that may discourage some person to develop small businesses.

• Distort market system Market unbalance will be generated because of minimum wage. Moreover, every industry has its own wage level. If the government standardize minimum wage, that will generate mismatched of resource, such as generate too high or low of wage in different industries.

• Weaken competitiveness Because of increase the cost of businesses, that also decreases competitive between companies.

• Discourage further education for low-tech employees Because employers may not raise employees’ wage, especial for low-tech employees, thus that will discourage further education for them.

Recommendation There are some recommendation giving to Hong Kong Government and Hong Kong’s enterprises. These recommendations may help to decrease disadvantages caused by establishing minimum wage.

Firstly, the government could encourage future education for low-technology employees, such as providing continuing education fund especial for low-tech employees. If low-technology employees are willing to future education which can be able to find a high wage’s position caused by improving their qualification.

Secondly, the government does not standardize minimum wage in every industries, because every industry has its own wage level. The government could establish Minimum Wage Commission which can discuss with representation of every industry and then evaluate each of industry’s minimum wages. Moreover, it could monitor each of industry should set suitable and proper minimum wage.

Thirdly, the government could encourage small businesses development, It can evaluate each of application of small businesses and provide supporting, such as providing a loan of low interest for small businesses or providing fund for their employees’ a part of wages. That can decrease pressure in paying their employees minimum wage.

Fourthly, the government can encourage enterprises to hire teenagers or disables, for example providing practical training between enterprises and teenagers or disable. That can increase employment opportunities for teenagers or disables.

Besides, Hong Kong’s enterprises should have more social responsibility. In my opinion, actually, because Hong Kong’s enterprises do not concern employees’ living standard and beat down employees’ wage and benefits, the government need to establish minimum wage policy to protect employees’ benefits and basic standard of living, thus employers should provide suitable wage and benefits for employees. Moreover, they provide more employment opportunities for teenagers and disable.

You May Also Find These Documents Helpful

  • Good Essays

    In his article “ Raising minimum wage won’t lower poverty”( Saltsman, 2011) discussed that raising the minimum wage may contribute to reducing the incidence of poverty at the same time may increase the incidence of poverty. Although raising the minimum wage contribute to the economic development and create many jobs and thus reduce unemployment. However, a lot of studies have shown that all of these pros of the lifting of the minimum wage will turn into cons by reducing the employment rate. After that , he mentioned the need to find regulations to imposing monthly salaries and hiring a lot of people instead of the consequences associated with the minimum wage.…

    • 245 Words
    • 1 Page
    Good Essays
  • Good Essays

    As the minimum wage increases, so does inflation. If an employer has to pay higher wages, then the price of the product or service being produced will have to cost more in order to pay the employee. In return the prices of all goods and services will rise, and the person earning higher wages, makes no gain. In some instances, a pay hike would not make a livable wage, but in fact could make it worse. People who normally get tax breaks for having a low income, would now end up paying more in taxes and may actually end up making less money overall. Higher minimum wages force employers to cut back on training, which deprive low wage workers of any chance of long-term advancement, in return for a small increase in current income. Having higher wages for low-paid positions might also discourage workers from gaining new skills. In most circumstances, minimum wage workers may start off at minimum wage and then as time goes on and their skills are refined, they end up getting paid more. So while many people may start off at minimum wage, many of these people don't necessarily stay fixed at minimum wage. There are many minimum wage jobs that offer advancement…

    • 2607 Words
    • 11 Pages
    Good Essays
  • Powerful Essays

    Firstly, the minimum wage system has some good affects. For example, guarantee the basic living and promote consumption increasing the minimum wages of low-income groups is to ensure and improve their income. The beneficiary of minimum wage desires strongly to consume. In addition to maintaining basic living, raising their minimum wage gives them certain consumer space as well. Along with the increase of the minimum wage, this segment of the population's living conditions will be greatly improved, which promote their consumption and stimulate domestic demand. Then, it will promote economic development. Also, the increase of market demand will lead to expansion; thereby increase the demand for…

    • 1537 Words
    • 7 Pages
    Powerful Essays
  • Satisfactory Essays

    Minimum wage is not just about somebodies income. Raising it will have much greater affect on the economy. The cost of goods and housing will go up. The reason the price of those things will go up is because we still have to help cover the cost of workers. By increasing the minimum wage it will decrease ones desire to further their education.…

    • 353 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    As stated in the pros column written by David Cooper, minimum wage should be raised to help people in poverty, help people pay for education, and to allow people to have some assurance when it comes to money. A raise in the minimum wage would help many people.…

    • 586 Words
    • 3 Pages
    Good Essays
  • Good Essays

    In “ Five Reasons Why We Should Raise Minimum Wage” an article featured on Salon by james Galbraith, an economist, says “With more family income, some people would choose to retire, go back to school, or have children, making it easier for others who need jobs to find them. Working families would have more time for community life, including politics; Americans would start to reclaim the middle-class political organization that they once had. Because payroll- and income-tax revenues would rise, the federal deficit would come down. Social Security worries would fade.” This shows that if we make the minimum wage higher it will help out people to do the things they want to in their ,life such as retire or go back to school . It would also help our economy. James goes on to say “raising the minimum wage would raise the incomes of 28 million Americans. Women would particularly benefit because they tend to work for lower wages than men…” This is an important factor to think about when debating whether to raise minimum wage because women do get paid less than men and in most cases , not all women are the single parent raising there kids and kids are expensive. Raising minimum wage would help families to be able to spend money on their family and the things that they need as well as getting a good education to aspire to be better and be someone better and do better than their…

    • 965 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Minimum Wage Is Bad Essay

    • 764 Words
    • 4 Pages

    Many countries, both developing countries like China and developed countries like United States, in order to ensure workers a minimally adequate standard of living and assist unskilled workers and teenagers, they impose the minimum wage laws, which dictates the lowest price for labor that any employer may pay. Nonetheless, although the starting point of estimating minimum wage laws is good, many economists, such as American economists named Henry Hazlitt, indicate that the minimum wage is the worst method and wrong way to enhance the wage. Why is the minimum wage bad way? As we know, the minimum wage law is used to help the poor, however, it actually hurt them. Owing to the minimum wage laws, plentiful companies have to increase the wage of unskilled workers. Thereby, they will cut down some workers to reduce the cost. Workers, who are fired, are usually unskilled people that the government tries to help. As a result, the unemployment rate raises, and skilled workers have no impact or benefits from the minimum wage laws. Furthermore, in the bulk of developed countries, the minimum wage…

    • 764 Words
    • 4 Pages
    Good Essays
  • Good Essays

    The earnings of minimum wage workers are crucial to their family’s wellbeing. Raising the minimum wage would help uphold some working families exceed the poverty line by mostly solving the primary problem with current minimum wage rate: it has failed to keep pace with inflation and the rising cost of living. In addition to providing a much-needed boost to low-wage families, increasing the minimum wage would also have other positive economic effects.…

    • 396 Words
    • 2 Pages
    Good Essays
  • Good Essays

    How To Raise Minimum Wage

    • 1206 Words
    • 5 Pages

    The minimum wage is the lowest wage permitted by law or by special agreement, but as of late many minimum wage workers have been complaining about their low wage of 7.25 an hour. Many people also believe that the low minimum wage is the reason why a lot of people are in poverty and why there are so many poor people. Common sense would have you believe that if you raise minimum wage you raise the standard of living and you bring people out of poverty, right? Wrong. Contrary to popular belief that is not true AT ALL. Raising the minimum wage is not only bad for the economy, but it also does not help the poor it actually hurts them in a way.…

    • 1206 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    Increase Minimum Wage

    • 96 Words
    • 1 Page

    For those who are paid minimum wage, everyday living is a struggle. Minimum wage is the smallest amount of money that a boss can legally pay their employee. As of now, the federal minimum wage is $7.25 per hour. When people are paid minimum wage they can’t live comfortably. Raising the federal minimum wage is imperative, even though some may think differently. If the minimum wage was increased, people would be able to earn a living wage standard, and avoid poverty; however, some would argue that by increasing the minimum wage would negatively impact the economy.…

    • 96 Words
    • 1 Page
    Satisfactory Essays
  • Good Essays

    can you image living in a society or country where all citizens are living below poverty line. nowadays in the united states, one of the most frequently ask question is should minimum wage be raised or completely eradicated altogether. minimum wage is the legally accepted pay that employers are required to paid their employees. A robust minimum wage is a key reason of sustainable economic growth.…

    • 591 Words
    • 3 Pages
    Good Essays
  • Good Essays

    A rise in minimum wage is good for the working class were they depend on it to raise their family. In today's world people having to work two jobs or more to sustain their family. For example, a single working adult with two children earning the federal minimum wage of $7.25 and working full-time earns about $14,500 a year, well below the U.S. poverty threshold of $19,073 for a family of this size. Furthermore, As the world is getting more expensive raising a family alone is very difficult. There are different families and all have their different problems.…

    • 716 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Many might say that raising minimum wage would increase financial problems. Minimum wage increase would hurt business and force companies to close. Although that may be true, raising minimum wage 10% would reduce the number of people living in poverty 2.4%. Minimum wage can help inflation. Help reduce federal deficit. Raising minimum wage would increase economic activity and spur job growth. As the nation we need minimum wage to pay our bills.…

    • 424 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Those who oppose this view say that decreasing the minimum wage will hurt the economy because lowering the minimum wage decreases the income of families so that they can purchase fewer goods and therefore decrease the GDP growth rate. There is another argument saying that is only fair to give an employee a “living wage” and can support at least a family of two for 40 hours a week. This is untrue because most employees that work minimum wage don’t work 40 hours a week anyway so it is already not a living wage but they don’t take the job for the short run, they do it to gain experience and can in the future work with other businesses that require past experience and will pay the employee a higher wage. As stated before, employees can work their way up the income…

    • 1294 Words
    • 6 Pages
    Good Essays
  • Good Essays

    People say that raising the Minimum Wage will help reduce poverty rates in the United States (U.S.) that assumption is false. Increasing the Minimum Wage would only make it worse. "A higher minimum wage does not reduce poverty rates, and because of the perverse way that many government aid programs are structured, it will also do little to help the neediest minimum-wage families." (James Sherk). What Sherk says here…

    • 667 Words
    • 3 Pages
    Good Essays

Related Topics