Minimum wage laws
The minimum wage laws are known to have some advantages and disadvantages associated to it. One of the advantages of minimum wage laws, as highlighted in perspective, is that they help in preventing employee discrimination by the employer. In this case, the employer is subjected to pay his workers an amount that does not go below the set rate. On the other hand, the disadvantage of minimum wage is that it reduces the job vacancy rate of the employer by attracting more candidates for a given position.
Response #1.
I agree with the fact that minimum wage bars an employer from paying an employee an amount that is lower than the set rate, and this may lead to equality in pay. Apart from that, the other advantage of minimum wage is that it motivates an individual to take on a job. This is because of the fact that the application of minimum wage laws may lead to an increase in the basic salaries for some positions, thus making such a position lucrative. Besides that, minimum wage can help in improving the quality of life, as such rates take into consideration factors such as inflation and prevailing interest rates. Conversely, there is one major drawback that is associated with minimum wage, and this is the inability of a business organization to afford other employee benefits as the entity may really strain itself to ensure that it subjects its employee to minimum wage. Last but not least, minimum wage can lead to an increment in the prices of the commodities. Such a move may be taken to ensure that the organization is able to cater for any additional costs of labor.
Response #2.
Minimum wage provides social stability in the sense that it helps in reducing the rate of dependence. The employees who are subjected to minimum wage are now able to fully cater for their needs without seeking help. On the other hand, the disadvantage of minimum wage is that the employer usually resorts to paying their employee minimum wage or just slightly above it. This rate may actually be inadequate for the employees given the unpredictable rates of inflation.
Response #3.
One of the notable advantages of minimum wage is the fact that the employer will not underpay the employees. This aspect is an important component in boosting the morale of the employees. On the other hand, minimum wage may threaten unemployment as some employers may be forced to lay off some of its workers for it to be able to comply with the minimum wage laws using scarce resources.