Suppose a person classified as an adult working in a fulltime occupation, cannot afford to eat, afford to find a place to reside and can barely clothe themselves. Then I suppose the government of our age has broken their social contract.
Minimum wage is a disputatious issue because it is contested in an array and discriminatory audience. Minimum wage I believe is the epicenter of the economist’s sphere of interest as he in constantly in hot pursuit in finding its relationship with job loss.
President Bill Clinton’s administration proposed in 1993 that it had intentions to have an increase in the minimum wage in America. The liberals applauded the step in good faith whilst their conservative counterparts expressed grief emotion towards the new policy citing the gloom and doom that a minimum wage hike would further hinder the economic recovery that was underway at the time, economic and political rhetoric has often ruled the minimum wage debate (McKenzie, 10, 1994).
While many people and opponents of minimum wage say that labour supply and demand concerns with a legislated wage rate, one must also consider the facts not only the theory. Empirical evidence has shown over time that an increase in the minimum wage does not lead to further unemployment however it increases the standard of living for those people most vulnerable in society.
Clinton said “it is hard to raise a family on $4.25 per hour, we must make sure that the minimum wage is a living wage” (Norlund, 1997, 208)
The most impoverished in society, those with a lesser skill set often have access to “bad jobs at bad wages” (Card and Krueger, 47). Those are largely the marginalized in society who have to deal with terrible working conditions which find themselves...
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Minimum wage is one program that promotes active participation in the labour market. If we want the amount of citizens on welfare to decline, we must offer them a job that can pay a liveable wage.
Card and Krueger, Alan B. The New Economics of the Minimum Wage. Princeton University Press, Princeton University: 1995
Smith, Adam the Wealth of Nations 1798 (fifth edition, London: Methuen & Co., Ltd.)
Norlund, Willis, J. Quest for a Living Wage-The History of the Federal Minimum Wage Program Greenwood Press, Wesport Connecticut: 1997
Department of Labour Webpage (www.dol.com) 1999
McKenzie, Richard B. Times Change Pacific Research Institute for Public Policy, San Francisco: 1994
Marx, Karl. The Communist Manifesto. Chicago: Henry Reginery Company, 1848/1954
Burger P, Fourie F How to think and reason in Macroeconomics, third edition, Juta Books
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