Abolition of Minimum Wage
A minimum wage refers to the lowest compensation that employers can legally offer their workers. In the present day, the minimum wage for employees in the United States stands at $ 7.25 an hour (Even & Macpherson, 2014). The sole function of the minimum wage is ensuring that all employees have satisfactory money to meet the different needs in a civilized economy as well as ensuring that employers retain enough money to make profits and develop their businesses.
The minimum wage protects and supports employees from labor exploitation and unfair pays. Additionally, it provides an element of security in different jobs for workers (Belser & Rani, 2015). Abolishing the minimum wage would mean backtracking the economy to create unfair working places where employees are exploited and rewarded very little for a vast amount of labor.
The abolition of minimum wages would result in inflation. People would demand higher wages, which consequently would increase their spending due to high demands. Firms would also increase their output prices to cater to rising labor costs. As a result, the prices for products would go up, leading to a situation where employees cannot satisfy their needs.
Thirdly, the abolition of minimum wages s would cause unemployment in the economy. Employees would demand high pays (Neumark & Wascher, 2015). As a result, firms would respond to the rising labor costs by reducing labor demands, which will, in turn, lead to unemployment. If put to an end, poor laborers protected by the minimum wages will be hurt.
Finally, abolishing the minimum wage would be hurting to young adults and teenagers with little or no skills and who are dependent on it (Meer & West, 2016). Organizations would want to hire qualified individuals to match the high pay. As a result, young adults will either be exploited or ignored in the labor market.
Conclusion
Minimum wages are important in that they help improve the living conditions for labor providers, especially the poor in the low job markets. Minimum wages remain a crucial element in promoting payment equalities and should not be abolished any soon or in the future.