Economics of Minimum Wage Essay Sample

Minimum wage economics definition

From a personal point of view, the minimum wage is the least salary paid by employees to their workers based on hourly, daily, or monthly durations. In other words, it entails the least amount resulting from offering professional services to a business or firm. Prior the introduction of minimum wage bill in the United States, young employees and women underwent exploitation in terms of payment; they received underpayments. However, the introduction of minimum wage came to their rescue where all employers are expected to conform to a certain minimum wage for their employees.

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In view of its benefits, minimum wage has been associated with the escalation of productivity, alleviation of poverty, increment in incentives, consumption increment, and decrement in government expenditure. In terms of productivity increment, minimum wage has been associated with enhancing the productivity of employees. With regard to wage theory, increasing employees’ salaries will increase their morale to perform and work harder and eventually escalate labor productivity. On the point of poverty alleviation, the introduction of minimum wage meant reduction in poverty levels. This has improved the amount earned by low-earners, which in turn improves their salary base. In doing so, employees are able to afford a decent life. In terms of incentives increment, the participation rate of employment has since improved. In view of government expenditure, minimum wage enables the government to minimize the total amount spent on social welfare programs. In conclusion, having a balanced level of minimum wage will always aid in stimulating the economic development and people’s welfare

Benefits of minimum wage economics

From a personal point of view, minimum wage is the least salary paid by employees to their workers based on hourly, daily or month durations. In other words, it entails the least amount resulting from offering professional services to a business or firm. Prior the introduction of minimum wage bill in the United States, young employees and women underwent exploitation in terms of payment; they received underpayments. However, the introduction of minimum wage came to their rescue where all employers are expected to conform to a certain minimum wage for their employees.

In view of its benefits, minimum wage has been associated with the escalation of productivity, alleviation of poverty, increment in incentives, consumption increment, and decrement in government expenditure. In terms of productivity increment, minimum wage has been associated with enhancing the productivity of employees. With regard to wage theory, increasing employees’ salaries will increase their morale to perform and work harder and eventually escalate labor productivity. On the point of poverty alleviation, the introduction of minimum wage meant reduction in poverty levels. This has improved the amount earned by low-earners, which in turn improves their salary base. In doing so, employees are able to afford a decent life. In terms of incentives increment, the participation rate of employment has since improved. In view of government expenditure, minimum wage enables the government to minimize the total amount spent on social welfare programs. In conclusion, having a balanced level of minimum wage will always aid in stimulating the economic development and people’s welfare