Introduction
Should
the minimum wage be increased? Many
people have different opinion on the matter and these opinion just depends on
the side of the fence that you are sitting on. Most of the people against the
increase are deemed to be the employers and to some extend they are. Those
supporting the increase are considered generally to be mostly the employees
which are the majority of the population (Dixon,
2017). To get a sober opinion on this, one needs to look at this from a
neutral point of view. Personally I have separated the facts from the fiction
and from the example I will give below you will see why I decided to support
it.
Arguments For and Against Increasing Minimum Wage
The
most common argument against the increase in the minimum wage bill is that it
will increase the cost of doing business. From an accounting perspective this
is true as the wages expenses will be high. On the other hand, from a human
resource point of view this will make the workers work harder, be more
productive and in return help the business in question make more money. The end
result is that the business will be able to recover for increasing the wages.
Another
argument against raising the minimum wage is that human beings cannot be satisfied
and will ask for even more. This is true as it can be seen that the wage bill
has been rising over the years. What we forget to see is the inflation. Over
the same period, the prices of goods and services have risen over the same
period of time (The Economist, 2017).
This means that the businesses have been able to make more and it is only fair
that they return the favor to their employees.
One
argument for increasing the minimum wage bill is that it encourages loyalty and
reduces employee turnover. No business
wants to incur the cost of recruiting new employees and training them. This is
true because employees want to be where they feel appreciated. “If you do not
take care of your employees, they will use your internet to look for jobs”,
this is a popular modern saying and should be taken seriously by any employer.
Another
reason for increasing the minimum wage is that it is a form of corporate social
responsibility. The business is supposed to contribute to the general welfare
of the society. The smallest unit of the society is the family which due to the
high dependency levels in the world is supported by the working class. This
means that by supporting the employees financial, you are supporting the
families/society both directly and in return.
Conclusion
The business world is a
cycle. The employees offer their services to the businesses who in turn pay
wages and salaries. The employees then use the wages to buy goods and services
from the businesses who then make profits
(Welch, 1978). This shows that we need each other to survive thus the
more the employees have, the more they will spend on the goods and services of
the business. To add to that, people work and their greatest motivation is the
wages they receive at the end of the day. In addition, inflation and the time
value of money has reduced the worth of money over the years. I believe it is
crystal clear that it is time for the minimum wages to be increased for the
most vital asset to any business-employees.
References
Dixon, L. (2017, june 14). Talent Economy. Retrieved january 16,
2018, from Talent Economy Website:
www.talenteconomy.io/2017/06/14/minimum-wage-impact-economy/
The Economist. (2017, july 17). The Economist. Retrieved from The
Economist website:
www.economist.com/news/finance-and-economic/21724802-two-studies-their-impact-seattle-reach-opposite-conclusions-economists-argue
Welch, F. (1978). Minimum Wages: Issues and Evidence. Washington
DC: American Enterprise Institute for Public Policy Research.
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