Why Minimum Wage Helps the Economy: Difference between revisions
No edit summary |
No edit summary |
||
| Line 8: | Line 8: | ||
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. | 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. | ||
| Line 16: | Line 17: | ||
'''Limits capitalistic exploitation''' | '''Limits capitalistic exploitation''' | ||
== Moderates discrimination == | |||
The minimum wage helps secure workers against any sort of discrimination or exploitation. The minimum wage is instated by the law and can be therefore legally enforced. | |||
Revision as of 02:03, 29 November 2006
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
The minimum wage helps secure workers against any sort of discrimination or exploitation. The minimum wage is instated by the law and can be therefore legally enforced.
