The National Minimum Wage Minimum Wage


While supply side economists might have a different argument thatdoes not seem to support minimum wage, demand side economist supportthe policy by holding that the minimum policy is the best way forupgrading workers who are not skilled from poverty. With this inmind, it is worth noting that the economic and social costs of notimplementing the said policy are closely intertwined.

Taking a brief glance at the benefits of the minimum wage policy, itis evident that the policy works for the best of the low earningworkers. Having been determined that most of the beneficiaries of thepolicy are the minorities, most of whom are women. The wage incrementwould definitely lift the workers from the harsh poverty. From aneconomic perspective, increased wages imply that the workers possessa reasonable purchasing power for their life necessities. Further,the workers can manage to purchase high quality goods, which stemfrom the opportunity to choose from the available alternatives.Notably, poor people get the goods that they can afford, without theslightest consideration of the quality.

The economic gains of the policy are extended to the businesses,which would enjoy working with a motivated labor force. Motivatedworkers are likely to dedicate their best skills and talents to theorganization or business thus increasing productivity and quality ofgoods produced. Further, employee turnover will also be kept to aminimum and this is likely to reduce the prohibitive costs oftraining new employees. Training of new employee goes beyond themonetary loss that is incurred, but also time that is lost before thenew employee adapts to the business operations.

The social gains of the wage increment are closely associated withworkers, especially parents managing to provide better lives fortheir kids. With increased purchasing power, parents can affordbetter housing for their families. Owing to the fact that most of thelow wage earners are women, both their productive health and thehealth of their kids are improved significantly, by wage increment.Children brought in high standard environments are less likely toengage in antisocial behaviors. This contributes to bringing up kidswho become responsible adults in the society. On the same note, therates of domestic disputes among the low wage earning workers arelikely to reduce thus promoting family solidarity and profitableinteractions in the families.

The opposite of the above gains is likely to occur, in the event thatthe said policy is not implemented. The rates of inflation supersedesthe almost constant low wages that workers have continued to earnover time. The poverty levels of the workers continue to worsen astheir purchasing power continue to drop. Having to survive under suchconditions, the low earning workers are least motivated, and theirwork quality remains low and poor. These workers will leave anorganization at the first chance they get a better paying job. Asmentioned earlier, employee turnover harms an organization incountless number of ways. The problems of unincreased wages are alsolikely to have negative impact on the growth and expansion of thebusiness. Financially stable employees are potential customers to thebusiness, and production of high quality goods attract customers, aswell as create customer royalty. In such an instance, business wouldincrease their sales volume and elevate their profit margin, whichcan be invested to expanding the business to new territories. Theopposite of the above point holds given that employees might be toopoor to even afford the products of their organizations.

From a social perspective, the social costs run down the families ofthe involved workers. The very chance for women economic emancipationdrowns with the failure to implement the minimum wage policy. Parentswho cannot provide standard life for their kids suffer fromhumiliation, which comes in handy with deprivation. The socialinteractions become strained and kids make attempts to find their waythrough the hardships. The result of the poor situations translatesto lots of kids getting tied to social evils as stealing and drugabuse, among other criminal activities. Family disintegration mightbecome the order of the day as families are left unable to affordthe basic needs due to inflation.

It would be advisable for the involved entities to push for andimplement the minimum wage policy. The policy will not only helpindividual workers live better lives, but also help businesses growand expand. Having been implemented, the policy would improve theliving standards of all citizens to eliminate the pathetic livingconditions of some people. Besides implementing the policy, thegovernment and congress entities that are involved should embark onproviding employee awareness to ensure that the employees make thebest out of the increment. Employees should be encouraged to savetheir extra earnings start income generating projects to boost theirfamily revenue. Left uninformed, some workers might commit theirwages to luxury spending, which would be automaticallycounterproductive.

All individuals involved in the process of implementing the wageincrement issue should focus on sustainability. The wages should beadjusted to respond to dynamic financial and economic situations of astate. In a nut shell, the wages mechanisms of increasing the wagesshould come up with a provision for inflation, or depression tomaintain a reasonable wage for the workers.

Cooper, D., (2014). Raising the Federal Minimum Wage to $10.10 WouldSave Safety Net Programs Billions and Help Ensure Businesses AreDoing Their Fair&nbspShare. Retrieved from

The resource is in the support of the benefits of raising the federalminimum hourly wage to $10.01. The implementation of the act wouldtranslate to a substantial reduction in economic constraints that lowwage earners endure in their life. The economic challenges of the lowearning workers are have a direct impact on the social difficultiesthat affect the low wage earners. The burden of caring for the lowwage earners is left to the government as businesses save onproduction cost to maximize profits. The author is for the opinionthat the wage increment policy should be implemented to facilitateeconomic sustenance among workers, as well as social wellbeing.

Cunningham, W. V. (2007). Minimum wages and social policy: Lessonsfrom developing countries. Washington, D.C: World Bank.

The book emphasizes on the attractiveness of the minimum wage policy,which have been proved as an effective tool for social justice andpoverty reduction. Besides not requiring intensive governmentinvolvement, wage policy is one of the best ways for the governmentto support individuals at the floor of distribution of income. Wagepolicy have been proved to work for the poor in a better way thanother interventions like public works or cash transfers.

Hansen, S. B. (2006). Globalization and the Politics of Pay.Washington: Georgetown University Press.

The book emphasizes on the repercussions of low labor wages, and hesuggests that the wages should be increased strategically tocorrespond to the economic and social forces. Further, the authorholds that improved labor wages facilitate competitiveness, whichresult to voluminous production, as well as elevated quality ofproducts. The overall point is that workers should be given pay risesthat do not degrade their living standards or cripple their economicemancipation.


Cooper, D., (2014). Raising the Federal Minimum Wage to $10.10 WouldSave Safety Net Programs Billions and Help Ensure Businesses AreDoing Their Fair&nbspShare. Retrieved from

Cunningham, W. V. (2007). Minimum wages and social policy: Lessonsfrom developing countries. Washington, D.C: World Bank.

Hansen, S. B. (2006). Globalization and the Politics of Pay.Washington: Georgetown University Press.