The Economic Implications Of Minimum Wage Essay

The Economic Implications Of Minimum Wage Essay

Length: 1132 words (3.2 double-spaced pages)

Rating: Strong Essays

Open Document

Essay Preview

The Economic Implications of Minimum Wage Legislation in Ontario

by Owen E. Richason IV, Demand Media

Minimum wage has been defined as ‘the smallest hourly wage that an employee may be paid as mandated by Federal law’. The minimum hourly wage of a country has a very deep effect on the economy of the country and its influences many aspects of a country’s economy. These minimum wages have been implemented to pull individuals out of poverty and hence decrease the poverty level and increase employment level. These wages usually for unskilled people or those who are not working full time. These wages act as incentives for people on subsidy or welfare to increase their income and work for a better living. These minimum wages have their benefits as well as disadvantages. Just like the two sides of a coin. A person who is earning a wage daily will be able to preserve his dignity too by becoming a contributing member of the society. Not only this, but the minimum wage law prevents companies from exploiting those people who have few employment alternatives.

Advantages of minimum Wages:

One vital advantage of this minimum wage law is that it helps families. A family who has at least one individual fully employed can have a proper living above the poverty line and support his/her family in a dignified way. Had there not been this law, then many people would be forced to live a life of poverty. Current census concluded that almost 40% of Ontarians are working in minimum wage jobs. This is a large portion of the population and these people are forced to live from paycheck to paycheck. With the rate of inflation the gas and oil prices have skyrocketed putting more burde...

... middle of paper ...

... loss in jobs will result if the minimum rate exceeds and if the wage is too low it might not be enough to keep above the poverty line. There is abundant evidence

that a 10 percent increase in the minimum wage leads to a 1 to 3 percent decrease in employment of low-skilled workers (using teens as a proxy) in the short run, and to a larger decrease in the long run, along with rising unemployment. It is believed that the minimum wage law can cause unnecessary hardship for the very people they are supposed to help. It should be at a balance with the person’s basic needs and for the business to thrive. It has also been witnessed that in order to overcome this situation big companies hire people, but then they are not given enough hours to cope up with their needs. This is not the solution to the problem as the people have to look for other jobs to fulfill their needs.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Essay about Should The Minimum Wage Be Increased?

- ... People might get more encouraged to make investments in companies and will let the company to grow faster to hire more people. The increase of the minimum wage could have no affect but it will cause a lot of problems, but it will cause a lot of problems in the future. On November 29, there were dozens of protests across the United States, and roughly about two hundred people were arrested on Tuesday night because of the protest. Many protesters wanted an increase of the minimum wage from seven to fifteen dollars an hour for everyone working in the United States....   [tags: Minimum wage, Unemployment, Employment, Wage]

Strong Essays
1786 words (5.1 pages)

The Future Of Minimum Wage Essay

- There are many factors that comprise minimum wage, but the basis for it is solely based on human stability. From housing to health care, and every aspect in between contributes to human stability. Maintaining human stability will always be problematic due to the changing times that the modern world contrives. The future of minimum wage will shape to that of the environment in which it is placed, and not to be broken in anyway, not even in a situation of economic turmoil. In the early twentieth century the United States had been through one World War, and was going through an economic depression; which increased the pressure in the labor market....   [tags: Minimum wage, Employment, Wage, United States]

Strong Essays
1859 words (5.3 pages)

Minimum Wage And Its Effect On Poverty Essay

- Less than 20% of workers receiving at or below the minimum wage are considered to be impoverished. The main reason for this lack of correlation between poverty and minimum wage is that the overwhelming majority of minimum-wage workers are parent dependent youths less than 25 years old (Sherk 2012). Recently, many Americans have been fighting for increased wages that would qualify as livable income, such as the “Fight for Fifteen.” Those in favor of this pay hike fail to realize the economic implications associated with furthered wage regulation....   [tags: Minimum wage, Unemployment, Employment]

Strong Essays
1140 words (3.3 pages)

Raising The Minimum Wage Should Be Increased At The Federal Level Essay examples

- ... With a supposed increase of minimum wage, minorities and low skilled workers who currently occupy the minimum wage jobs would be forced out of jobs by either better educated teens or skilled workers according to Dr. Dorn (Dorn). This would then force the unskilled crowd to find other jobs, many of them would find jobs in a category that doesn’t have much research due to their nature. Consequently, the following will just be my logical proceedings. Unreported employment, or under-table-cash-jobs, are all jobs in which a service and a price are agreed upon without any formal paperwork....   [tags: Minimum wage, Employment, Wage, Supply and demand]

Strong Essays
1325 words (3.8 pages)

Economic Impact Of The Gig Economy Matters And Implications Of The Economy

- The reasons why growth of the gig economy matters and implications of the economy will now be explained. Existing studies, while acknowledging the economic gains within the gig economy (e.g. Huws, 2015 and ) have failed to resolve concerns raised about labour issues arising from this growing economy; although there may be some difficulty in doing this based on various grey areas within the employee definitional context. Critics argue that within the gig economy businesses enjoy the benefits of having ‘employees’ without giving anything in return....   [tags: Economics, Unemployment, Employment]

Strong Essays
1135 words (3.2 pages)

Does the Minimum Wage Increase the Standard of Living for Low-Income People?

- The 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 employment, or even improve unemployment rates. Others point to the economic theory of supply and demand, and claim it will increase the unemployment rate....   [tags: fair labor standards, policy, unemployment]

Strong Essays
1382 words (3.9 pages)

Poor Living Conditions and Ill Health Essay

- Introduction Over the past quarter century there has been a growing body of support for the importance of understanding the relationship between poor living conditions and ill-health. These conditions have been referred to as the social determinants of health. There has been a strong push amongst policy makers to study the non-medical determinants of health as opposed to the traditional narrow way of thinking with regards to medical treatments or lifestyle choices (Mikkonen, Raphael 2010). Income and income distribution is thought to be the most important of the social determinants of health because it further influences other social determinants of health for example, low-income families a...   [tags: Social Issues, Minimum Wage]

Strong Essays
2076 words (5.9 pages)

The Is The Author 's Purpose? Essay

- -What is the author’s purpose. The author’s purpose is to advocate some political change to support a diverse workplace and to better the families. This can be done by introducing policies, programs, and procedures that can improve a family’s life by creating their productivity and work organization. It makes sense because if they feel like their environment is clean and safe it is a better for them because they would enjoy most of the times working and have a positive outlook in the job rather than coming home sick due to the environment and other cases....   [tags: Minimum wage, Wage, Environment, Better]

Strong Essays
911 words (2.6 pages)

Issues and actions in family policy Essay

- The value of families in our society is indispensable, they are an essential component to the growth and success of our nation and because of this they should be regarded in policy reform and implications. As Bogenschneider so adequately describes, “In contemporary society, families are said to be the central element and source of greatest joy in the lives of the majority of Americans” (Bogenschneider, 40). One of the greatest focal points on the majority of political agendas is the protection and preservation of this source of joy....   [tags: House Purchases, Minimum Wage]

Strong Essays
1376 words (3.9 pages)

The Universal Living Wage Essay

- The Universal Living Wage In 1906 Father John Ryan, a renowned social and economic intellectual within the Catholic Church, published a book titled A Living Wage: Its Ethical and Economic Aspects. The book introduced to America workers the idea of a guaranteed minimum pay determined by the basic costs of living and set the stage for later minimum wage legislation during the 1930’s. Over the last decade, the idea of a living wage has resurfaced as workers have become more outspoken about the inadequacies of the federal and state minimum wage levels....   [tags: Essays Papers]

Strong Essays
3219 words (9.2 pages)