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.
The biggest benefit is the increased incomes that most workers will get. Workers will be entitled to certain minimum wages that are not in any way dependent on what companies, businesses and other employers believe they should be paying. Failure to have this minimum amount will encourage employers to take advantage and pay workers money they cannot survive with adequately. This is more so in places with few jobs and thus individuals have no alternative but to embrace the available jobs irrespective of pay.
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 such laws are of the belief that without setting such thresholds, there are chances there could be sudden and anticipated drop in wages in such a way that workers will find themselves out of the jobs or it will be impossible for them to live off just one job. They will be forced to do more jobs for longer hours for them to survive.
Investing is the dream of every person that is employed. The only way to however consider investing is through having an assured income, and one that is high enough to afford an investment. Thus such laws make it possible for more and more people to consider investing. From the perspective of the business owners and companies, there is bound to be more investment in workers. Stated in other words, because businesses have to pay more for their employees, it serves them more to train, care for and insure the same employees.
From a macroeconomic perspective, these regulations will tend to hurt workers. The small scale companies or businesses may not be in a position to pay raised wages without incurring losses. In essence, they will be forced to cut down on number of employees if they are to stay profitable. At the end of the day, jobs will be fewer and people will be unemployed.
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.
With minimum wage laws therefore, workers are set to gain a great deal. Among the big losers however are small scale businesses and companies. They have to trim on their employees to keep afloat.
The biggest benefit is the increased incomes that most workers will get. Workers will be entitled to certain minimum wages that are not in any way dependent on what companies, businesses and other employers believe they should be paying. Failure to have this minimum amount will encourage employers to take advantage and pay workers money they cannot survive with adequately. This is more so in places with few jobs and thus individuals have no alternative but to embrace the available jobs irrespective of pay.
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 such laws are of the belief that without setting such thresholds, there are chances there could be sudden and anticipated drop in wages in such a way that workers will find themselves out of the jobs or it will be impossible for them to live off just one job. They will be forced to do more jobs for longer hours for them to survive.
Investing is the dream of every person that is employed. The only way to however consider investing is through having an assured income, and one that is high enough to afford an investment. Thus such laws make it possible for more and more people to consider investing. From the perspective of the business owners and companies, there is bound to be more investment in workers. Stated in other words, because businesses have to pay more for their employees, it serves them more to train, care for and insure the same employees.
From a macroeconomic perspective, these regulations will tend to hurt workers. The small scale companies or businesses may not be in a position to pay raised wages without incurring losses. In essence, they will be forced to cut down on number of employees if they are to stay profitable. At the end of the day, jobs will be fewer and people will be unemployed.
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.
With minimum wage laws therefore, workers are set to gain a great deal. Among the big losers however are small scale businesses and companies. They have to trim on their employees to keep afloat.
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