Essay on Should the minimum wage be increased
Should the minimum wage be increased Essay : Increasing the minimum wage for workers helps in engaging them in the organisation, reducing employee turnover and improving productivity. In 1938, the Federal Minimum wage was introduced by President Franklin Delano Roosevelt. A major advantage of a minimum wage is that it helps in eradicating poverty in the nation. This is because increasing the minimum wage helps in stimulating the spending of the consumers, developing business bottom lines and accelerating the economic growth of the country. In India, the Minimum Wages Act of 1948 stated that minimum wages shall be paid to both the paid and the unpaid workers. Considering this, it is also significant to increase the minimum wage of workers across the globe.
Discussion
Increasing the minimum wage positively affects consumer demands as a result, it helps to boost the entire economy. In response to this, the U.S. House of Representatives changed the version of the Raise the Wage Act of 2019 which intends to increase the minimum wage. However, this Bill died in the Senate and the debate on whether to increase the minimum wage still persists. Opponents of increasing the minimum wage is of opinion that increasing the minimum wage leads to negative impacts such as inflation and making the companies less aggressive. The main argument in favour of increasing the minimum wage implies that higher wages will lead to better standards of living by offering them a significant level of income so that they can afford the increasing cost of living. Else, they will land themselves in poverty. If the number of poor population increases, the GDP and the PPP of the nation will equally fall. The Congressional Budget Office represented a significant improvement in the standard of living for 17 million people who lived below the poverty line and this has been possible due to the increase in the minimum wage. An intangible benefit of increasing wages is that it helps in boosting the morale of the employee which keeps them all the more engaged with the company. Thus they put in the maximum efforts and contribute in a larger way to bring the productivity of the company. Excess employee turnover also poses problems for the employees as they again have to indulge themselves in the training and hiring process, which always do not tend to be cost-effective. Employees stay with the company only when they derive benefits and foresee their successful career in the company. For instance, the employee turnover rate at Amazon is high because of the rising productivity demands without considering wages.
Conclusion
In conclusion, it can be said that increasing the minimum wage is absolutely legal and companies that do not follow the labour wages act are doing an injustice to the labourers. Sadly many reputed organisations engaged in the illegal and inhuman act of poorly paying their employees. There are many such examples we will see in daily newspaper articles. Thus it is extremely important to increase the minimum wages of the workers to retain them in the organisation and boost their morale so that they can bring successful outcomes for the organisation.
FAQs
1.) State any one effect which can happen if the minimum wage is not increased?
It leads to low productivity in the organisation.
2.) When was the Minimum Wage Act coined?
It was coined in the year 1948.
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