The Argument Against the National Minimum Wage Essay

The national minimum wage was introduced in the UK in April 1999 by the Labour government. Essentially it formed a major part of their manifesto as it convinced the average population that Labour were beneficial for everybody. However, they would argue against classical economics and suggest there are wide spread benefits to be gained. The main argument is that the NMW would alleviate poverty across the country. This is an equity issue that has constantly concerned society and would go some way to redistribution of income. It is a social belief that if every one is well off and lives above the poverty line, there will be positive social externalities for all. For example, those living in†¦show more content†¦This could only be good for the economy as the supply of labour increases. The NMW could ensure that whilst employees have increased wages and this should reduce the number of people dependant on the government via benefits. More people earning means less will need to claim job seekers allowance and acts as further saving for the government to spend elsewhere. The governments budget will further rise as increased incomes mean a greater number of people paying taxation and the level of taxation could afford to rise be small increments. The wage gap will be addressed and the effect of wage differentials will hopefully be reduced by the introduction of a national minimum wage that applies to all regions. The benefits discussed above are for employees but business should also gain for the NMW to be considered a useful tool in the economy. The argument that peoples incentive to work is increased also affects business as if people are happier in their jobs, they are less likely to consider leaving. This reduces labour turnover in markets, which is a major cost to business. Recruitment, retraining and the possible renegotiation of higher wages all raise costs for firms on a daily basis and are particularly detrimental for small firms with limited number ofShow MoreRelatedArguments for and Against the Minimum Wage in the Uk1137 Words   |  5 PagesArguments for and against the National Minimum Wage (NMW) in the UK: stop employees being taken advantage of by being paid unfair wages by their employers. set a standard of the minimum worth of a worker. This benchmark was set so that employers would be unable to hire any staff for less than the suggested hourly rate. reduce pay differentials between genders. What is the new minimum wage?: In October 2009, the NMW for workers increased from:  £5.73 to  £5Read MoreThe Impact Of National Minimum Wage On South Africa s Income Inequality Essay1525 Words   |  7 PagesThe impact national minimum wage would have on South Africa’s income inequality should it be implemented. South Africa is still considered one of the countries which still consist of high income inequality. Economists argue that inequality is the most unavoidable part of the economic development and that it continues to increase in developing countries due to economic growth (Keeton, 2014). Inequality is a problem in countries such as South Africa, because it shifts the attention from bigger andRead MoreDemand Supply , Examine the Argument in Favour Against Minimum Wage Law in Uk1415 Words   |  6 PagesAssignment: A * (Using Demand Supply: examine the arguments in favour against minimum wage law in UK*) * *Total words: 1,402 Demand It refers to the willingness and ability of buyers to purchase goods and services at different prices. Supply It refers to the willingness and ability of sellers to provide goods and services for sale at different prices What* *is minimum wage? A minimum wage is the lowest monthly, daily or hourly that employersRead MoreThe Minimum Wage Act Of 20071607 Words   |  7 Pages Introduction In 1938, the first national minimum wage laws in the United States were passed as part of the Fair Labor Standards Act, which served as â€Å"a floor below wages,† to reduce poverty and to ensure that economic growth is shared across the workforce. Today, many people who work for companies that pay at or near the minimum wage and remain near or below the poverty level rely on government health and food security and income programs to supplementRead MoreDoes the Minimum Wage Increase the Standard of Living for Low-Income People?1391 Words   |  6 PagesThe United States has maintained a minimum wage which was enacted since 1938. At the present time there is much political debate in regarding to increase the minimum wage to levels at the federal level, state, and local levels of government across this country. There are various theories regarding the minimum wage. Some believe it would circulate money into the economy faster which would negate and negative effects on employmen t, or even improve unemployment rates. Others point to the economic theoryRead MoreMinimum Wage During The Great Depression1419 Words   |  6 PagesThe Minimum Wage Battle In the United States, the minimum wage was passed during the Great Depression in 1938 to protect the buying power of normal workers in a period in which the â€Å"unemployment rate was still a very high 19 percent† (Sklar, 2009, p. 1). Since that time, there has been significant debate about the controversial topic of raising the federal minimum wage. The federal minimum wage law was created to eliminate unfair practices of sweat shops and manufacturing companies during this timeRead MorePersuasive Essay On Minimum Wage1526 Words   |  7 PagesMinimum wage is defined by the dictionary as â€Å"the lowest wage paid or permitted to be paid; specifically: a wage fixed by legal authority or by contract as the least that may be paid either to employed persons generally or to a particular category of employed persons.† Minimum wage is also referred to as the living wage. For many in and out of the political arena, minimum wage, is a topic of debate. The discussion involv es the fairness of the current wage and the need to raise this wage to correlateRead MoreShould We Increase Minimum Wage?1508 Words   |  6 PagesThe topic on whether the minimum wage should be increased our untouched has been a hot topic in the media and political scene lately. Both the republicans and democrats have spent some big bucks lobbying their insights on the matter. There has been a lot of subjective and objective arguments that are reasonable on both the pros and cons of increasing our national minimum wage. To add to the drama associated with this topic, President Obama endorsed a bill proposing a nearly 40% rise from $7.25 toRead MoreMinimum Wage Conflict Theory1501 Words   |  7 PagesChristopher Ferraro Law and Society 10/10/17 Minimum Wage Argument Marx s conflict theory has a very distinct ideology, it is stated that it mainly focuses on the causes and effect of class conflict between the bourgeoisie and the proletariat. The Bourgeoisie represented the members of a higher society which held onto the majority of the wealth and means also known as the owners of the way of manufacture and the capitalistic. While the proletariat class was constructed by individuals who belongRead MoreThe Effects Of Minimum Wages On Employment, By Benjamin Sosnaud, And The Effects Of Minimum Wage Essay1507 Words   |  7 Pagestheir small hourly wages. Some groups advocate for increased wages, but others oppose that idea because of the possibility of widespread job losses. Even though researchers have heavily analyzed the effects of a living wage in the past few years, experts claim that different kinds of studies are biased to support one viewpoint over the other. The articles â€Å"Living Wage Ordinances and Wages, Poverty, and Unemployment in US Cities,† by Benjamin Sosnaud, and â€Å"The Effects of Minimum Wages on Employment,†