Without doing an in-depth analysis, it always seems that making more cash comes with only advantages and no shortcomings. Many people are however of the belief that making more money is recipe for bigger problems. This is what forms the basis of the debate around minimum wage laws. Most governments look to enact laws that legally guarantee that workers will be paid some minimum income, irrespective of where they work. From the point of view of the worker, being paid minimum income has significant benefits. However, there are a number of drawbacks as well.
Perhaps the biggest benefit is the increase in income for most workers. All workers will be legally protected and will earn some amount of money that is not dependent on the companies they work for or employers believe they should be paid. Without such regulations, there are employers that will take advantage and pay low wages that workers cannot survive on. This is especially so in areas with less jobs and thus people have no option but to settle for the low incomes.
It would be difficult to say that a job is entirely secure. Nevertheless, through being paid particular wages, workers are able to feel secure. The laws provide them with basic rights. With such regulations, as long as they hold their jobs, they will know what they are supposed to be legally paid. This reduces the uncertainty that crops up without enactment of such laws.
Proponents of these laws believe that if such regulations were not set, there is the probability of workers being exposed to anticipated and sudden drop in wages. In this way, they will find themselves out of their jobs after a while. Beyond that, they will not be able to live off just a single job- they will have to get several jobs.
Investments are an important aspect for the employed. However, the only way one would be able to do so is when they have an assured income and stable jobs. Thus from the perspective of the worker, investment becomes an achievable dream when jobs are stable and income considerable. As concerns businesses, they will invest more in productivity of workers. In other words, if businesses have to pay more for their employees, it will serve them more to train, insure and care for the employee.
From a macroeconomic level, minimum wage laws could be hurting to workers. When companies and businesses are made to abide by certain regulations bordering on wages, a number of them may be forced to pay more than they can actually afford. They will thus be forced to downsize on the number of employees as the only way to stay profitable. Some employees will be laid off and there will be fewer jobs eventually.
When companies are forced to pay incomes they cannot comfortably afford, they will resort to outsourcing for labor. This they do from other countries. Such labor is cheaper and thus affordable to them. Further, when wages are hiked, firms will look to compensate for the cost of keeping their workers in employment at minimum wages.
Minimum wage laws are good for workers more than they are for employers. This is especially so small scale companies or employers that may not be in a position to comfortably keep up. For people that are yet to be employed, it may not be the best piece of news as jobs will tend to be slightly fewer.
Perhaps the biggest benefit is the increase in income for most workers. All workers will be legally protected and will earn some amount of money that is not dependent on the companies they work for or employers believe they should be paid. Without such regulations, there are employers that will take advantage and pay low wages that workers cannot survive on. This is especially so in areas with less jobs and thus people have no option but to settle for the low incomes.
It would be difficult to say that a job is entirely secure. Nevertheless, through being paid particular wages, workers are able to feel secure. The laws provide them with basic rights. With such regulations, as long as they hold their jobs, they will know what they are supposed to be legally paid. This reduces the uncertainty that crops up without enactment of such laws.
Proponents of these laws believe that if such regulations were not set, there is the probability of workers being exposed to anticipated and sudden drop in wages. In this way, they will find themselves out of their jobs after a while. Beyond that, they will not be able to live off just a single job- they will have to get several jobs.
Investments are an important aspect for the employed. However, the only way one would be able to do so is when they have an assured income and stable jobs. Thus from the perspective of the worker, investment becomes an achievable dream when jobs are stable and income considerable. As concerns businesses, they will invest more in productivity of workers. In other words, if businesses have to pay more for their employees, it will serve them more to train, insure and care for the employee.
From a macroeconomic level, minimum wage laws could be hurting to workers. When companies and businesses are made to abide by certain regulations bordering on wages, a number of them may be forced to pay more than they can actually afford. They will thus be forced to downsize on the number of employees as the only way to stay profitable. Some employees will be laid off and there will be fewer jobs eventually.
When companies are forced to pay incomes they cannot comfortably afford, they will resort to outsourcing for labor. This they do from other countries. Such labor is cheaper and thus affordable to them. Further, when wages are hiked, firms will look to compensate for the cost of keeping their workers in employment at minimum wages.
Minimum wage laws are good for workers more than they are for employers. This is especially so small scale companies or employers that may not be in a position to comfortably keep up. For people that are yet to be employed, it may not be the best piece of news as jobs will tend to be slightly fewer.
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