A minimum wage, which sets the lowest legal wage a company can pay its workers, is designed to prevent exploitation. Its backers argue the pros, including guaranteeing low-income workers a liveable wage, outweigh the cons. But who really benefits from a legally mandated minimum wage?
The minimum wage is too low
A higher minimum wage would unlock economic benefits and be far more effective at limiting poverty.
Higher minimum wages would increase government revenue
The government would benefit from a higher minimum wage in the form of increased revenue.Explore
A higher minimum wage would improve economic activity by adding consumers
Minimum wage has been an issue for years. People who get paid minimum wage don't get to contribute much to the economy. If people can't spend money on anything, the economy can't be poured into. Therefore, a higher minimum wage would boost GDP.Explore
Stagnant minimum wages have fueled inequality
Many economies' minimum wages have been relatively stagnant since the middle of the twentieth century. This has led to rampant inequality.Explore
The minimum wage is good for businesses
The minimum wage doesn't just benefit workers, it is also good for businesses.
The minimum wage increases worker productivity
Workers that receive a legally guaranteed minimum wage are more productive than those that don't.Explore
Minimum wages reduce employee turnover
Employers save money on training due to higher employee retention.Explore
The minimum wage reduces government spending
Governments can reduce spending on social safety nets when employes are forced to pay a national minimum wage.
The minimum wage provides an incentive to work
A legal minimum wage that pays workers more than they would earn on government unemployment programs incentivizes work.Explore
Minimum wages reduce the costs of social programs
Governments can reduce spending on social programs as the private sector pays low-earners a higher wage.Explore
The minimum wage is good for workers
A minimum wage benefits workers by lifting them out of poverty and fueling job creation.
A minimum wage reduces poverty
A minimum wage guarantees that all workers can earn a livable wage and support their families.Explore
Minimum wages reduce gender and racial income gaps
Minimum wage policies help low-income workers. Females and minorities are overrepresented among low-income earners.Explore
The minimum wage creates jobs
The minimum wage is designed to ensure all workers are paid fairly. The minimum wage puts more money in people's pockets to buy more products, driving up demand, and prompting employers to hire more employees to keep up with demand.Explore
A minimum wage is ineffective at reducing poverty
Minimum wage laws do not benefit workers or businesses and are ineffective at combating poverty.
Minimum wages don’t keep pace with inflation
Minimum wages do not keep pace with inflation, leaving many low-income workers below the poverty line.Explore
A minimum wage raises unemployment
Minimum wage policies contribute to increased rates of unemployment.Explore
The minimum wage drives inflation up
Increased wages for the lowest workers drives prices up, which leads to higher inflation.Explore
The minimum wage doesn't address underemployment.
Underemployment is a far larger driver of poverty. A minimum wage does nothing to address underemployment.Explore
This page was last edited on Sunday, 24 May 2020 at 17:06 UTC