Introduction
What is a minimum wage? There is hardly an adult person who hasn’t met this word construction in his life. To be honest, it is an issue that hooks the attention of citizens in any country. It has become one of the most popular topics, and changes in its sphere is always followed by sharp people’s discussion. To give a proper definition, the minimum wage is the lowest payment that workers can get instead of their labor. It is defined by the official institutes and is legally protected. It is extremely important to avoid injustice in receiving money from organizations.
The formation of minimum wage amount depends on many things. It strongly tights to the current national economic condition of the country and is impacted by the overall level of life in it. In the countries that we used to name well-developed, the minimum wage will be considerably more essential than in those with unstable economics.
Advantages of minimum wage
There are lots of persuasive arguments that claim the pros of minimum wage and proves the reasons why it should be strongly defined.
- Guarantee of government protection for workers
Minimum wage is a strong guarantee that protects common individuals from injustice. Without this protection, employees would not receive proper payment for their labor. The way people earn for a living requires selling their goods and services to others. The one who bought has the right to define the payment and may offer too cheap prices. But now, he/she could not give less than the defined base.
- Diminish the occasions of poverty
Another thesis that was suggested to prove the advantages of the minimum wage is that it positively influences the process of poverty disappearance. Individuals are not guaranteed to become rich, but they monthly receive a refund that enables them to use goods and services provided by others easily. Their payment always covers their general everyday needs, and they can provide themselves with a comfortable living.
- Raising productivity
It is officially proved that the minimum wage will increase the productivity of the company workers. There is a well-known correlation that exists in any area: the bigger the award is, the better and harder the staff is struggling to get it. The growth of the measure of minimum wage definitely forces people to work more as they feel that their forces are correspondingly compensated.
- The increase of stimulus to find a job
It is not a secret that unemployment is a big problem for lots of countries. There are so many citizens that could not sell their services and live without a constant job. They are constantly looking for a job on the market and are not satisfied with the payment they get. A considerable amount of minimum wage will be a stimulus to find a job for them. They will definitely know that will receive repayment for their activity.
- Lower government spending
Another statement claims that minimum wage will considerably lower spending that government annually does. Such money use is focused on protecting people without a job who could not come to the market and find a proper way to provide their living. Social programs that give a fund help for people to support them in fulfilling of their daily requests will considerably lessen the annual amount of money. Minimum wage serves as a guarantee that citizens will get the needed payment to cover their needs.
- Extend consumption
Another positive effect that minimum wage does regarding to the general consumption in the country. It could be easily explained by the fact that the staff obtains monthly a significant amount of money that enables them not only to fulfill their needs but also to spend them for pleasure. Visiting of theaters or cinemas becomes more often, and the same thing is about shopping.
Disadvantages of minimum wage
The opposite side, though, gives arguments that prove the shortage of the minimum wage.
- The minimum wage will increase unemployment
One of the most popular opposite statements claims that the minimum wage will increase the occasions of unemployment in the country. This argument has its rights for existence as the companies considerably lessen the number of staff due to the appearing of the minimum wage. The companies have not privileged from extra supplying of activity. They think about their competitiveness and high the price of their services while lessening the list of vacation.
- Raise of inflation
Another argumentative statement provides the fact that the minimum wage is one of the most influential factors of the rapid inflation in the country. The well-defined amount of money that people are supposed to get monthly is usually followed by the rise in prices. It is how business works: they are aware of the grant of minimum wage and know that individuals can now spend more money. Taking this fact into consideration, they increase the prices for the goods people will probably buy.
- The growth of the investment cost
Another disadvantage of defining the minimum wage will refer to the significant enlargement of the cost of investment. Not every company is ready for this unexpected step, and it is the issue of their existence. The minimum wage means the organization should pay more to the staff and it eventually impacts the growing investment. After all, they are forced to raise the prices for products to balance the situation.
Conclusion
Minimum wage is the lowest fund of money that the government demands to pay for people who sell their services to others. It is usually seen as the market bottom for wage employers defines for their staff. There are arguments whether establishing the minimum wage in the country is a good choice or it causes more problems. Both sides have various argumentative statements that prove their rightness.
I accept the fact that minimum wage will increase such negative aspects as unemployment and cause difficulties for companies by the growth of the cost of investment. However, I reckon that the minimum wage has considerable advantages and should be obligatorily protected by the official establishments. It is the only one meaningful guarantee for citizens to get a correspondent repayment for their labor.
