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Employers can't pay wages that are too low to sustain the workers life. A minimum wage helps ensure that employers have to pay wages that allow employees to pay the cost of living
Minimum wage laws also have a negative effect at times, in that it sets a low pay scale which employers can pay rather than letting the marketplace set rates according to the cost of living in certain areas.
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What are the reasons to raise the minimum wage?
Raising the minimum wage can help reduce poverty, improve the standard of living for low-income workers, and stimulate economic growth by increasing consumer spending. It can also reduce income inequality and help address the rising cost of living.
What is mumin wage?
The minimum wage is the lowest legal salary that employers can pay their employees for work performed. It is intended to ensure a basic standard of living for workers and varies by country, region, and sometimes by industry. Minimum wage laws are designed to protect workers from exploitation and help reduce poverty. However, the effectiveness and adequacy of minimum wage levels are often debated.
What are the benefits of increasing the minimum wage?
Increasing the minimum wage can lead to higher incomes for low-wage workers, reducing poverty levels and increasing consumer spending. It can also improve employee morale and productivity, reduce employee turnover, and stimulate economic growth by boosting demand for goods and services.
What would minimum wage be an example of?
Minimum wage is an example of a price floor, which is a government-mandated lowest legal wage that employers can pay their workers. It is intended to ensure a basic standard of living for employees and reduce poverty by preventing wages from falling below a certain level. By setting a minimum wage, the government aims to protect workers from exploitation and promote fair compensation in the labor market.
Is minimum wage found in a command economy?
Yes, minimum wage can be found in a command economy, where the government centrally plans and regulates economic activities, including labor standards. In such economies, the state may impose a minimum wage to ensure a baseline level of income for workers, aiming to control living standards and reduce poverty. However, the effectiveness and enforcement of minimum wage laws can vary depending on the specific characteristics and governance of the command economy.
What has the author John P Formby written?
John P Formby has written: 'Minimum wages and poverty' -- subject(s): Poverty, Poor, Government policy, Unemployment, Effect of wages on, Minimum wage, Wage-price policy, Employment
What are false concerning the government's poverty guidelines?
if you work at a full-time at a federal minimum wage
What is a example of a government policy?
An example of a government policy is the implementation of a minimum wage law, which establishes the lowest hourly wage that employers can pay their workers. This policy aims to ensure fair compensation, reduce poverty, and promote economic stability. By setting a minimum wage, the government seeks to improve the standard of living for low-income workers while balancing the interests of employers and the economy.
How can you reduce the results of poverty?
Poverty is not only caused by unemployment and lack of education, because if you look at the community now some of the poorest people have jobs. To reduce poverty they should introduce the minimum wage law so that earnings for workers are repectably decent... I know that you think minimun wages means increased unemployment because of less productivity from workers, but it has succeeded in other countries, and that is not the case with high minimum wages means more workers will be employed.
Why should the government raise the minimum wage?
Raising the minimum wage can help improve the standard of living for low-income workers by providing them with higher wages to meet their basic needs. This can reduce poverty levels and stimulate economic growth as workers have more money to spend, boosting consumer demand. Additionally, it can reduce income inequality and help bridge the gap between the rich and the poor.
What is the is the differences of living wage and minimum?
Minimum wages are set both nationally and statewide. The minimum wage gives employers a guideline as to the legal minimum amount paid to employees. the minimum wage served to keep 86% of workers and their families above the poverty line for a family of four. Today that percentage has dropped to 64%, in effect leaving 36% of wage earners living at or below the poverty line. The current minimum wage amounts are roughly half of what the projected living wage is in any given area. Living wage is defined as the estimated amount of income necessary to live comfortably and put a family into the bracket of middle class.
Who is impacted most from minimum wage laws?
Minimum wage laws affect employees who earn the minimum wage as well as business who pay the minimum wage to its employees. Increasing the minimum wage improves the quality of life for those who earn at or near the minimum wage, however, it can cause businesses to hire less employees or reduce staffing levels. That leads to higher unemployment for unskilled workers, who are the people that generally earn minimum wage. Those who earn minimum wage are probably most directly impacted by minimum wage laws. The laws also change the behavior of businesses by affecting staffing levels or passing cost increases on to their customers.
