Increasing the minimum wage is the fairest way to benefit low wage workers.
Positive reasoning: Increasing the minimum wage is not the fairest way to benefit the low wage workers. An increase in low wages will reduce the increase in demand for labor. Some employees will be retrenched or displaced. Increasing the minimum wages will also increase the production cost, and the prices of products will increase. In the long term, the low wage workers will end up spending more on basic needs, and increasing the minimum wages will not have much effect.
Normative reasoning: Increasing the minimum wage should be the safest way to benefit the low wage workers. Low wage workers spent most of their salaries on insurance and basic needs. There is not much money left for extravagant spending. This makes them survive from hand to mouth, and they remain at the same financial status. Raising the minimum wage will help them to use surplus money on secondary needs, such as investing in businesses, and their financial condition will improve.
Increasing the minimum wage is the most economically efficient way to benefit low wage workers.
Positive reasoning: Economically, increasing the normal wage is not an efficient way to benefit the low wage workers. Increasing the minimum wage will cause a rise in the cost of production, and it will affect the prices of goods. People will spend more on basic needs, and the economic equilibrium will be achieved. Even if the economy grows due to the increase in the spending rate, the people will spend their savings on products they used to purchase at a lower cost.. Don't use plagiarised sources.Get your custom essay just from $11/page
Normative reasoning: Increasing the minimum wage should be the most economically efficient way to benefit the low wage. This is because they will have enough money to spend on their needs. They will also have enough money to invest and improve their financial status. The economy will also improve because there will be money circulation
References
Marginean, S. & Chenic, A. (2013). Effects of Raising Minimum Wage: Theory, Evidence, and Future Challenges. Procedia Economics and Finance. 6. 96–102. 10.1016/S2212-5671(13)00119-6.