Question

After researching both sides to this issue, answer the following questions, in 3 to 5 sentences each:

1. Describe the concept of a livable wage and its benefits and potential harms.

2. If the minimum wage is not raised, what must be done to provide for those who cannot find a way to support themselves or their family?

3. IF the minimum wage would be raised/doubled, what other adjustments would need to be made? (raising non-minimum wages, etc.)

4.  Are you personally in favor of a livable wage? Why/Why not?

Answer 1

1) A living wage or a livable wage is the minimum income necessary for a worker to meet the basic needs . The benefits are that it brings equilibrium in labor market and caters to the basic needs of the worker . The harms are that it does not provide a worker enough money for skill development or to pursue a higher standard of living , also it may cause shirking at work .

2) If the minimum wage is not raised then the equilibrium wage might be very low or may not provide the workers with a decent standard of living . In such cases , people who cannot support their families and themselves adequately should be provided with social security benefits such as pensions , health insurance coverage , unemployment benefits , health and education facilities at minimum costs etc .

3) If the minimum wage is raised , that would lead to high unemployment in the labor market . So other adjustments such as job creation , setting up of public sector units should be done .

4) No a livable wage is not enough to cater to requirements like higher education , vocational training . A living wage does not include the basic buffers needed to improve one's quality of life or protect against emergencies .

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