Question

Should the government raise the minimum wage? Explain your answer. Your targeted audience are the Shareholders of your company ABC Technologies. The CEO stated he wants to increase minimum wage from $10.00 to $17.00, but the Shareholders are concerned that is not a smart move financially. Be sure to cite pros/cons; laws involved, living wages, etc. This is a current ongoing debate in America as some companies are raising the wage while others not so much. What impact will this have on the consumer?

I will appreciate the help!!

Answer 1

Should Government raise the Minimum wages?

This question is fully depend on economic condition of Country and labors. It Labor wages rate are not good for adequate livelihood it is must for the Government to raise the minimum wages else Government should take a prudent decision.

Wages-

Wage is consideration to worker for his work. Consideration paid has been defined in different terms like wages, salary, fee etc. Wages generally used for the work which done by hands for which not much expertise or training is required. It generally relates with lower or middle class of workers. It normally paid in daily or monthly mode.

Impact of Wages

It is important for companies to form a good wage policy else it may impact working of their workers, work atmosphere and productivity of workers.

Labor Laws for minimum payments

Every employer need to follow rules for minimum wages. There are different rules in different countries, but there is similarity on minimum wage concept. Non-compliance may attract penalties in following form:-

1. Monetary penalty- this penalty enhanced for repetitive violation.
2. Imprisonment

Pros and Cons of enhance of Minimum wages

Pros:-

1. Enhancement of wages increases the livelihood of labors.
2. Due to increase consumption chain take speed which enhances growth of country.
3. By adequate wages labor focus on his work and his productivity increases.
4. Proper wages can be used to reduce the unemployment and crime rates also.
5. By paying adequate wages health and hygiene related problems.
6. By enhancing wages quality and productivity of company may be increased profitability of organization which may enhance return to other stakeholders as well.

Cons:-

1. Enhancing wages may increase cost of products by which profitability of product and company may be badly impacted.
2. Enhancing wages may increases cash outflow which may be used for other major works.
3. Enhancing wages beyond a level may hamper youths to target bigger challenges.
4. Enhancing wages must be on the criteria of work and its quality.
5. Wages must be related with productivity.
6. Enhancing Wages disproportionate may reduce return of shareholders.

Impact on Consumers

Consumer will get good quality product but this may be costly. Some consumers may require to search alternative options of some products also. Those why cant afford may reduce consumption of some products also. But it is also true that by enhancing wages many more consumers will added to the market.