Why Minimum Wage Helps the Economy

Introduction Helps Economy

Economics is the science that aims to optimize the allocation of resources in society. So, if economists came with the term minimum wage, it definitely must have been for a reason. Let us make a brief overview of the justification of the establishment of a minumum wage in the labor market.

Initiate effort

A minumum wage is necessary to promote any effort from the part of workers. Accodring to the efficiency theory, there exists a minumum wage, which workers require before investing any effort. If we look at this tendency, we can bravely state that a minumu wage fuels the economy and lays out the fundamentals of productivity.

Reduce unemployment

Provide a comparative basis

Limits capitalistic exploitation

Moderates discrimination

gender

age