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An Explanation of the Positive and Negative Effects of the National Minimum Wage for Employees, Businesses and the Economy
As I have shown through this piece of work there are many points to consider in deciding whether having a minimum wage is advantageous. There are so many positives and negatives.
Other countries have had minimum wages for a long time. Some, such as the United States, have low unemployment and others, in continental Europe have high unemployment. It's hard to draw general rules, except that if a minimum wage is set too high, it will displace workers and make employers less competitive; but if it is set at a moderate level it need not be too disruptive to an economy, and can be beneficial.
I feel that the positive aspects of the national minimum wage are more important than the negative aspects. For example its said that job losses will result due to excess supply of workers however that is not always the case as I have shown. It's also important to realise that a business can deal with increased wage bills by taking a cut in profit margins. It is better for this to happen rather than see exploitation of low paid workers plus in the long run the business may benefit from process innovations that will mean that they will regain their high profit margins.
- An Explanation of the Positive and Negative Effects of the National Minimum Wage for Employees, Businesses and the Economy
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