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Position Statement (outline) - Essay Example

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Scrapping minimum wage should see an increment of job opportunities, which become available with an increase in the supply of jobs and greater incentives for companies to hire employees…
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Position Statement (outline)
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Position Statement (outline)

Download file to see previous pages... A single expense such as house rent is capable of taking up almost half of one’s salary. Businesses can also abuse the work-market since minimum wages ensure that businesses give their employees a reasonable sum of money to pay the bills, whether one is skilled or unskilled. Minimum wage, finally, forces businesses to share their vast wealth with the producers of the wealth. Some executives take millions home in bonuses even when a company posts a loss. Therefore, it is not much to ask that they give the employee at least a guaranteed set pay.
a) Economics’ most fundamental principle is demand and supply and, in the case of labor, supply of workers normally goes up with the appreciation of wages, with the demand for workers going down with an appreciation in wages. An employer backed, into a corner, to pay a certain amount of money to a janitor by the government might decide not to employ a janitor, instead making the other employees pick up the janitor’s duties.
b) Setting a mandatory wage limit causes a disruption of the demand and supply market forces (Neumark & William 13). As the minimum wages rise, the number of people in employment drops and vice versa. It is fundamental to remember that minimum wages will only apply if an individual is employed.
c) Many businesses such as automakers have mundane tasks that can be performed by machines. Forcing them to institute a minimum wage structure will lead to increased mechanization. Spending up-front money for this mechanization seems a fair price to pay compared to paying set wages that exclude the rules supply and demand.
a) Outsourcing of jobs eventually leads to a reduction in the number of jobs accessible to the citizens. An increase in labor costs, say in the United States, will lead to the creation of an added incentive to hire labor from Canada and Mexico.
b) Companies facing rising labor costs, further, experience more ...Download file to see next pagesRead More
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