Tuesday, March 20, 2018

20 Mar 2018 What Is The Role Of Minimum Wage?

What Is The Role Of The Minimum Wage?

When I was a teenager most of us went to work at some business in town. We were paid the minimum wage. The minimum wage was designed so that teenagers would not be taken advantage of at businesses. It was never intended to be a wage that an adult could live on let alone try to raise a family.

Somehow businesses over time were able to slowly raise the age at which people were paid the minimum wage and expanded the number of jobs that were paid that rate. This may have been good for the business and in a way for the consumer because prices were able to be kept down.

I think it is important as the society that there be a two-scale minimum wage. The first would be for teenagers as it was originally intended. The second would be for adults in the workforce. Some people call this a living wage. If every business had to pay the same living wage, no business could undercut a competitor with cheaper wages.


The pure capitalist would say to let the market dictate the minimum wage. However, history has showed us that business if left unchecked would take advantage of its lowest earning employees. Our society needs the debate on this. Too many people are stuck in a vicious cycle due to the existing minimum wage.

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