Question

Need a short discussion of "Minimum Wages" and needs to be adressed the minimum wages with economic discussion and critical anayais.

Answer 1

Minimum Wages
Minimum wages can be referred to the remuneration or return that an employer could pay his worker or labor legally. That is the floor below a labor will not be willing to work. The minimum wages laws can reduce the employer’s ability to exploit the labor in giving wages. Also, a mild increase in the minimum wages could increase labor productivity and entire demand and supply in the market by increased income of the labors. Thus both firms and the market could benefit from a mild rise in the minimum wages.
The minimum wages have risks of increasing poverty and making the low-skilled workers worse-off. An increase in the minimum wage level could force the firms to reduce the level of employment or substitute the low-skilled workers by skilled labors. A higher raise in the minimum wages could adversely affects on the employment rather from increasing consumer demand in the economy. The people below the poverty line may be affected more. Chances of employment will be more for skilled than the unskilled. Firms do not prefer unskilled labors with high minimum wages. Also, firms finding loss with increased minimum wages could lay-off the workers creating increased level of unemployment. These may reduce the ability of the economy to grow further and also to reduce the level of poverty.