Should The Minimum Wage Be Scrubbed?

Essay from the year 2017 in the subject Economics - Monetary theory and policy, grade: 1, Dedan Kimathi University of Technology, language: English, abstract: This paper analyzes the concept of minimum wage and seeks to answer the question whether it should be scrubbed or not. A minimum wage is the lowest amount of remuneration which employees ought to legally pay their employees. Even though there are minimum wage laws in many governments, there exist differences in opinion about the benefits and setbacks of a minimum wage. Those who support the minimum wage argue that it lowers inequality in society, reduces poverty levels, increases the living standards of employees, increases motivation and increases efficiency among businesses. On the contrary, its opponents argue that it increases unemployment, increases poverty and has a damaging effect to businesses because high minimum wages require businesses to increase product prices to accommodate the extra expense of paying a higher wage.