The Positive Effects of Minimum Wage on the Economy Sample Essay

Throughout the old ages. lower limit pay has become an issue that has been viewed in a more negative manner. There are many positive effects. but positives are being outweighed by the negatives. with the many of import effects of the positives being overlooked. The economic system. along with persons. have benefitted in more ways than one. Minimal pay opens up the chances of occupations being offered to those who would non otherwise qualify for the higher paying occupations. which require college grades ( Characteristics of Minimum Wage Workers. 2012 ) . These persons remain at the underside of the wage graduated table and they are given the chance to do their part to the economic system. while at the same clip. supplying for their households. and bettering their accomplishments. leting them to go less dependent on the authorities for aid. Minimal pay is non needfully detering. as it does hold many positive effects on the economic system. 1- Create occupations for labour forces.

Working minimal pay does non ever intend the worker is non qualified for a occupation. it sometime means they have the accomplishments to acquire the occupation done but they do non hold the makings to acquire them a higher paying occupation. Since they have the making to finish the occupations. a company could engage more minimal pay workers for less than what they would pay person in a higher wage class. That manner they can acquire the work done faster at a cheaper rate. therefore increasing productiveness. ( Fitzpatrick. 2009 ) Increased productiveness could intend more concern. which means more money. When a company increases productiveness and makes more money. it can make more occupations. This would be good for the economic system because increased productiveness means an addition in Gross Domestic Product ( GDP ) . Goods produced by the state could intend more money for the state. which helps to fund instruction. provides health care and other benefits. This would besides acquire other states interested in puting in their stocks. ( BEA. 2007 ) 2- Less people depend on authorities assistance.

Employment plays an of import function in the economic system since the more occupations available. the more people work and the more money earned. The less money the authorities spends on assisting households and persons. the more money they will hold to take down the budget shortage. More money means more disbursement and more disbursement means more money for the economic system. Peoples who depend on authorities assistance are able to work because of minimal pay. and are able to supply for themselves and their households. When it comes to the round flow. if an person makes an earns a pay that is above market. it will ensue with another person gaining a lower income. ( Krugman & A ; Wells. 2009. pg. 368-369 ) The money that the authorities saves from non holding to supply assistance for those persons and households will assist to diminish the budget shortage. The authorities would make less borrowing from organisations and other states. With less money traveling out in authorities assistance. there would be small or no demand to raise revenue enhancements in order to take down the budget shortage. which means there would be more money for consumers to pass. ( Krugman & A ; Wells. 2009 ) 3- Motivates persons to put calling ends.

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!

order now

Human capital. which is instruction and cognition. could assist to increase productiveness in the workplace. This would assist workers to work more expeditiously to acquire the occupation done because they would be more educated and more knowing about the undertakings that need to acquire completed. Minimal pay provides the occupations that would supply the foundation to kick-start a calling. It provides the necessary accomplishments that would assist persons to get better paying occupations. Improved accomplishments and cognition means more end product and better quality work. After working for minimal pay wages. immature people and persons might desire to better their instruction in order to derive the cognition required to use for better paying occupations. They would assist to better the economic system by utilizing up human capital to work more expeditiously in order to be more productive. ( Sauter. 2012 )

No affair how we may look at the minimal pay issue. many households depend on the minimal pay in order to back up their households. Minimal pay provides the foundation which is needed to acquire your pes into the door. and acquire persons in a place which will measure up them for better paying occupations. ensuing in them being able to supply for their households in many better ways. Minimum pay helps these persons to play their portion in assisting the economic system. as they would be able to depend less on authorities for aid. they would sharpen their working accomplishments in order to measure up for better paying occupations in the hereafter. giving the people more money to pass and at the same clip. go more educated in order to work more expeditiously.


I'm James!

Would you like to get a custom essay? How about receiving a customized one?

Check it out