Arguments Against Minimum Wage Law

One policy that was implemented to raise economic growth and living standard is the minimum wage law. Minimum wage is the lowest payment given to a worker or employee for their service after working a set number of hours (Wikipedia, 2007). The living wage approach has drawn numerous attention and criticism, whether it benefits the economy or not. Supporters of base pay believe that it helps people by improving lifestyle and meeting acceptable needs (Wikipedia, 2007). However, opponents view that it decreases the employment rate and economic stability. Although, many hold different perspectives, it is important to understand the reasons why the government enacted the law and to distinguish the arguments for and against it. The government created numerous base wage boards’ acts for particular factors. For example, the government enforced the minimum wage board act such as the Industrial Conciliation and Arbitration Act in New Zealand, Factories Act in Australia in 1896, and Trade Boards Act in 1909 to assist workers and families to survive financially and economically (Wikipedia, 2007). This produces economic

For example, it increases consumption by allowing workers to afford a firm income to spend on daily necessities and other luxuries (Wikipedia, 2007). Second, by having a substantial salary, reliance on government welfare social programs lessen and results in a higher move towards depending on job earnings. Third, the labor market would have market power influence over the manager, resulting in better proficiency in services and prevention of monopsony. By these factors and other claims, this leads to better productivity, secure income, boosted capital skills and work ethics needed to achieve a higher level in their career for employees. For businesses, better production results in higher profits. These all in turn help to upgrade economic