On the surface, it always looks like making more money comes with only good things. There are however people that believe that with more money come more problems. This is what brings about the debate revolving around minimum wage laws. Governments seek to have a legal guarantee that workers are to be paid some minimum amount of money. From the perspective of workers, there are significant advantages to such regulations, with 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.
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.
Another shortcoming is outsourcing. In the modern market, companies want skilled labor at the lowest costs possible. Therefore, companies that do not have deep pockets will tend to look to other nations for cheaper labor. Hiking of wages will be a threat to workers already employed as firms look to do compensation for the cost of keeping workers employed 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.
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.
Another shortcoming is outsourcing. In the modern market, companies want skilled labor at the lowest costs possible. Therefore, companies that do not have deep pockets will tend to look to other nations for cheaper labor. Hiking of wages will be a threat to workers already employed as firms look to do compensation for the cost of keeping workers employed 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.
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