Question

In 4 paragraphs explain how the us minimum wage an effective anti poverty program?

Answer 1

A minimum wage is the lowest remuneration per hour that a worker may be legally paid by the employer, as mandated by federal law. The minimum wage is a legally mandated price floor on hourly wages, thus any wage below which non-exempt workers may not be accept or offered a job. The minimum wage laws with a primary purpose to set in place to benefit those in poverty and to make sure there is equality in wages.

Raising the minimum wage increases the rate of unemployment. Paying the working poor for their labor needs to be a sound, ethical ideal. But is is only partially right, and sometimes in business ethics actually wrong if we go too far as it may cause unemployment. The minimum wage is a complex issue at the intersection of employment, social, business management, and economic policy.

Most of poor Americans do not work for the minimum wage; and main concern is that majority poor Americans do not work at all. An increase in the minimum wage does not address the poverty concern and, by causing businesses to hire fewer workers, actually makes it more difficult for potential workers to find full-time jobs. On balance, the minimum wage leaves low-income people of U.S. no better off in the short term and far worse off in the long term.

Furthermore, it would not secure low-wage earners from not being able to search work, as employers respond to forced higher wages with the adjustment of other components of compensation such as health benefits; and hence an effective anti poverty program