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The Position Statement of the Economic problems
Position statement topic: Eliminating Wage Bill
The government should eliminate the minimum wage in order to pave the way for economic development and growth. Every government has a certain level of earnings set for its employees by the legislation. The issue of employment has been debated in the government for centuries and yet no solution has been reached.
Economic arguments against my position
- Implementing the minimum wage bill helps reduce poverty among low-income earners
Minimum wage favors low earners who face exploitation and discrimination in workplaces. Every firm has the responsibility of ensuring that their employees get enough compensation to cater for daily needs. The level of payment set by the government helps low earners achieve higher standards of living. Such people can avoid money to cater for their families, hence contributing to the nation’s economy through taxes charged in shopping areas (Forbes 1).
- With minimum wage, the government can easily manage extra spending in the economy
Minimum wage helps the government manage extra spending in the economy. Setting specific levels of compensation for employees eliminates instances of the government spending extra expenses on salaries. In addition, the issue allows for easier accountability of resources in the government. When the government accounts for all its resources, it promotes economic growth because the saved resources help improve other sectors. In addition, the minimum wage ensures effective resource allocation in all government and private sectors (McEachern 264-265).
- Minimum wage improves the economy through encouraging employment
Implementing minimum wage improves the economy of the country through minimizing unemployment. With the minimum set levels of compensation for workers, many organizations take the advantage and employ more workers but pay them the minimum amount. The government sets the minimum wage in such a way that the lowest amount of salary paid to an employed person can cater for individual’s daily needs. Unemployment affects the economy of the nation because the higher the number of unemployed population the lower the rate of economic growth. Minimum wage has a beneficial effect on the distribution of income on low-income earners and also helps promote employment. In addition, the issue allows organizations raise incomes of low-earners to the minimum level and employ more workers in order to achieve the desired level of production (Brown, Gilroy, & Kohen 523-525).
Economic arguments supporting my position
- Minimum wage creates unemployment to the country.
Minimum wage should be totally eliminated because it has no economic significance to the country. Governments set minimum wages for their employees in order to avoid wastage of resources and over-spending on employee salaries. Minimum wage contributes to the high rate of unemployment experienced in the United States today. Most organizations aim at supplying at above-market prices by promoting more labor and hiring a limited number of qualified employees. Young workers possessing few skills are at a disadvantage because with the introduction of the minimum wage bill, no organization dares employ them. In addition, a lot of employees under the age of 25 face many challenges with the introduction of the minimum wage. Such people engage in criminal activities creating issues of insecurity that have a negative effect on the economic growth of the na.............
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