On the surface, people have the notion that making a lot of money is associated with good things only. Other people on the other hand are of the belief that more money is associated with problems. This is the root of the raging debate on minimum wage laws. The majority of governments look to have legal frameworks that guarantee workers to be paid minimum wages. Workers are set to derive a lot of benefits from such regulations, though there are also a few drawbacks.
The biggest advantage is the fact that there will be more money for workers. The law allows workers to earn some minimum amount that is independent of what companies and other employers believe they need to be paid. Without this lowest amount, employers would take advantage. In areas with few jobs especially, they will pay wages that workers cannot use to survive, but people will be forced to take such jobs because they have no other options.
Whereas there is no job that one can say is completely secure, workers are able to derive some form of security from such laws that guarantee minimum wages. Workers are provided with basic rights. They will know how much money they will be paid as long as they hold such jobs. Thus, uncertainty is reduced as people keep working with peace of mind.
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.
Outsourcing of labor is the next option for companies that look to remain profitable and still have a given number of workers. In outsourcing, companies look for labor from other countries. Such labor will always be cheaper and thus enable them to keep up production without losses.
Therefore, it is evident that with minimum wage laws, workers are set to benefit a great deal. The shortcomings affect mainly people that are yet to get employed. Further, small businesses and companies are set to be the biggest opponents of the law because they will not benefit as much.
The biggest advantage is the fact that there will be more money for workers. The law allows workers to earn some minimum amount that is independent of what companies and other employers believe they need to be paid. Without this lowest amount, employers would take advantage. In areas with few jobs especially, they will pay wages that workers cannot use to survive, but people will be forced to take such jobs because they have no other options.
Whereas there is no job that one can say is completely secure, workers are able to derive some form of security from such laws that guarantee minimum wages. Workers are provided with basic rights. They will know how much money they will be paid as long as they hold such jobs. Thus, uncertainty is reduced as people keep working with peace of mind.
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.
Outsourcing of labor is the next option for companies that look to remain profitable and still have a given number of workers. In outsourcing, companies look for labor from other countries. Such labor will always be cheaper and thus enable them to keep up production without losses.
Therefore, it is evident that with minimum wage laws, workers are set to benefit a great deal. The shortcomings affect mainly people that are yet to get employed. Further, small businesses and companies are set to be the biggest opponents of the law because they will not benefit as much.
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