Question

should we have a minimum wage?, this has been a controversial topic ever since president Franklin roosevelt established the first federal minimum wage. If state have a different wage law than the federal government the higher wage rates take precedence. consider supporters of extending the minimum wage and those opposing it.

Answer 1

Answer: There should be a minimum wage or not for workers is indeed a controversial topic, but lets us examine some of its benefits as propounded by its supporters and later we'll see its demerits as propounded by its opponents:

Merits:Minimum wage-

1.increases standard of living of working population which is largely comes under middle income group or lower middle income group family. It helps them to cover there cost of living effectively.

2. Work as a incentive for more productive work as supported by various studies/ researches ,people work more effeiciently when they get paid better, hence ultimately helps in growth of company.

3.reduces Income inequality hence it makes society a better place to live in and welfare measure for people who are earning for future of country.

4.increases income level of population hence ultimately leads to increase in demand hence more supply from firms hence more growth of firm.

5. increases investment by working group in health, education and other social parameters of their family and children hence produce a bright future of country with great health and mind also reduces burden from government's expenditure.

Let us discuss some of its Demerits:A minimum wage-

1.increases burden over firms hence they give employment to less people than actual required strength and take more work from them hence more stress for them who are already working hence reduction in productivity and efficiency.

2.leads to flying of jobs to other countries or to say leads to out sourcing of jobs as can be seen happening from developed countries to developing countries.

3.increases Unemployment as firm's will recruit less hence will lead to decrease in overall income level of economy hence less demand, less supply and at last less growth.

4.do not effect each sector equally like it effect labor intensive sector's firm more than capital intensive sector firms.

Having said that however it can not be ignored that merits have edge over demerits as greater aim of companies,firms etc should be SUSTAINABLE GROWTH and that can be achieves by providing due share of workers according to their hard work.