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.
Inasmuch as there are no jobs that guarantee 100 percent security, employees are able to draw some security from these laws which guarantee them considerably higher earnings. As long as they hold such jobs, they will know how much they are supposed to earn. Any form of uncertainty is kept away as a result.
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.
For people that are employed, one aspect that makes them feel encouraged by their jobs is when they are able to invest. This is however only possible when they have enough income and jobs that are stable. The single most important way to ensure this is enacting laws that guarantee minimum wage. For businesses, such regulations enable them put more investment in their workers. They will pay more for their workers, they spend more to train them, plus insuring and caring for them. Thus workers will be more productive.
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.
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.
Inasmuch as there are no jobs that guarantee 100 percent security, employees are able to draw some security from these laws which guarantee them considerably higher earnings. As long as they hold such jobs, they will know how much they are supposed to earn. Any form of uncertainty is kept away as a result.
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.
For people that are employed, one aspect that makes them feel encouraged by their jobs is when they are able to invest. This is however only possible when they have enough income and jobs that are stable. The single most important way to ensure this is enacting laws that guarantee minimum wage. For businesses, such regulations enable them put more investment in their workers. They will pay more for their workers, they spend more to train them, plus insuring and caring for them. Thus workers will be more productive.
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.
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.
About the Author:
Read more about Benefits And Shortcomings Of Minimum Wage Laws visiting our website.
Aucun commentaire:
Enregistrer un commentaire