Minimum wage
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Introduction
The advantages that come with the changes in minimum wage include making work more attractive for the unemployed workers drawing more into the job market, and the increase will greatly help those working in low wage jobs. The benefits trickle down to the ability to live within their means as they can comfortably afford basic needs. The downside of this approach would be job losses for those workers with no skill forcing the employers to sack them, leading to them not having jobs.
On the other hand, businesses have to adjust to the minimum wage law, meaning their profit margin will be reduced. With such reductions, they will counter the same by either increase their good and service prices or by cutting back on employee appraisals. The drastic measures undertaken are all to keep their head above water.
In my opinion, the production businesses are more hurt by the minimum wage bill. I believe both large and small sectors will felt the effects as they are all labor-intensive. The driving labor force is nonskilled, and therefore they are most likely to fall under the minimum wage category. The minimum wage law will cause an increase in the production cost, reducing the profit margin.
One theme that stands out is poverty; this theme’s importance shows the differences in wage gaps in society. The wage gap mustn’t widen excessively beyond controllable measures, and this prompts the need to talk about poverty.
The advantages of increased minimum wages include improved overall standards of living, improved employee morale, reduced job relocation expenses, and increased consumer spending. On the other hand, the disadvantages include fueled inflation, increased operating cost, forced job losses, and an era of job outsourcing. To the economy, the increased minimum wage will result in accelerated consumer spending, therefore, promoting businesses and, therefore, growing the economy. Through consumer demand, the overall economy will be boosted. My opinion on income tax is that promoting infrastructure, improved economies, and on the low would lower consumer spending and decrease a business’s revenue.
References
https://www.usnews.com/opinion/economic-intelligence/2015/08/19/wage-subsidies-are-better-than-raising-the-minimum-wage
https://www.vox.com/policy-and-politics/2017/8/8/16112368/piketty-saez-zucman-income-growth-inequality-stagnation-chart