Access over 20 million homework & study documents
search

Minimum Wage: The Debate A-grade Guaranteed (MLA Paper - 6 pages - With References)

Content type

User Generated

Type

Essay

Rating

Showing Page:
1/6
Surname 1
Your Name
Professors name
Course name
Date
Case for Increase In Minimum Wage: The Debate That Encircles Modern Society
Minimum wage has been a topic that has engulfed many nations recently. In order to be
able to make an informed and un-biased judgment over the issue, one needs to have a thorough
understanding of economics, government’s role in regulating markets and the impact of
economic policies on trade and commerce and social welfare of the population. It is also of great
significance that arguments set out by proponents and the opponents must be given considerable
attention since their debate on the issue carries weight in their own ways. The proponents have a
valid point but so do the opponents. Coy and Berfield in their article What a Higher Minimum
Wage Does For Workers and the Economy highlight the sad state of thousands of employees,
who work at largest private employers like Wal-Mart and Mc Donald’s, are paid so little that they
have to rely on charity and government benefits to get by. On the other hand, raising the
minimum wage would price some workers out of the labor market such as interns (Coy and
Bernfield). It all boils down to making the economic decision that best benefits majority of
stakeholders.
Most modern economies follow the capitalist form of economic system where means of
production are controlled by private entities that aim to generate profit out of their enterprises.
These enterprises pay out taxes out of their profits that help generate revenue for the government.

Sign up to view the full document!

lock_open Sign Up
Showing Page:
2/6
Surname 2
Government in turn runs developmental programs and programs of social welfare such as
unemployment and old age benefits that help general population. The lower the cost there is for
any business, the higher the profit and resultantly higher tax revenues for the government.
Government earns tax revenues through personal income tax imposed on salaries earned by
individuals. Government also earns sales tax on the economic activity generated by individuals
and businesses. Hence the economic system is dependent of the sustainable working of each of
the components. The system works fine as long as there are no sudden disruptions in fvactors
such as the ones highlighted above. Government may regulate some of these factors in order to
bring stability to the system and keep elements from taking undue advantage of the other. One
such element is minimum wage.
Businesses are created to churn out profits for their owners and by nature, corporate
shareholders aim for profit maximization. In their drive to maximize profits, businessmen have
an incentive to pay their employees as less as they can. Due to higher rate of unemployment the
high supply of labor keeps the wages depressed to the extent that people become willing to work
for wages that are not enough to sustain a healthy lifestyle. In order to keep organizations from
exploiting their employees, governments set minimum wages. This floor establishes the
minimum cost of labor incurred by firm. Any change in this floor can have significant impact on
the cost of companies which is why corporations use their influence to keep the minimum wages
at their lowest. Historical trend of minimum wages suggests that real minimum wage has
declined to USD 7.25 in 2013 from a peak of USD 10.69 in 1968 (Elwell 2). Many corporations
and established businesses argue against increasing the minimum wage referring to the increase
in cost of doing business in America. Some representatives of political parties side with such
corporations against the minimum wage. Joe Miller, a representative of the Grand Old Party

Sign up to view the full document!

lock_open Sign Up
Showing Page:
3/6

Sign up to view the full document!

lock_open Sign Up

Unformatted Attachment Preview

Your Name Professor's name Course name Date Case for Increase In Minimum Wage: The Debate That Encircles Modern Society Minimum wage has been a topic that has engulfed many nations recently. In order to be able to make an informed and un-biased judgment over the issue, one needs to have a thorough understanding of economics, government's role in regulating markets and the impact of economic policies on trade and commerce and social welfare of the population. It is also of great significance that arguments set out by proponents and the opponents must be given considerable attention since their debate on the issue carries weight in their own ways. The proponents have a valid point but so do the opponents. Coy and Berfield in their article What a Higher Minimum Wage Does For Workers and the Economy highlight the sad state of thousands of employees, who work at largest private employers like Wal-Mart and Mc Donald's, are paid so little that they have to rely on charity and government benefits to get by. On the other hand, raising the minimum wage would price some workers out of the labor market such as interns (Coy and Bernfield). It all boils down to making the economic decision that best benefits majority of stakeholders. Most modern economies follow the capitalist form of economic system where means of production are controlled by private entities that aim to generate profit out of their enterprises. These enterprises pay out taxes out of their profits that help generate rev ...
Purchase document to see full attachment
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Anonymous
Really great stuff, couldn't ask for more.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4