Minimum Wage and why it is Important
I was having a chat with a group of people, then someone asked why minimum wages are important? I didn't say much, I was trying to understand the angle at which he was seeing this, and one of the things he said was the greed of politicians so they can measure their wages.
To be candid, politicians can just decide to increase and decrease minimum wages, it only needs a sitting or hearing by the legislative arm of government who will pass it into bill, so minimum wages could go up and down for a very long time but will this be good for governance?
Why is there minimum wage?
Let's not forget that the market is determined by demand and supply and this is what affects jobs its self, employers will only pay employees who are needed for a job depending on demand and the supply available as well as competition. When there is little supply of a particular set of skill processed by employees, the demand for such skills increases and the employers start to pay higher so they can have the limited resources to themselves and not another employer but when the skill is processed by everyone, the value for such skill drops to zero and in some cases to negative which then reduces the demand to a very low point. At this point, the employer will be willing to pay next to nothing as the skill is in high supply. At this point, wages won't be sufficient to pay bills and live for a minimal expenses period.
The government now has to set a shield which will prevent people who do not have high skills and are supposed to be paid less to nothing, and there comes the minimum wage. With this, there is a standard minimum amount that an employer should pay an employee when giving them the job.
Really appreciate this clarification and it is true that legislative bodies just need to make a decision to make this valid.
I appreciate your response also.
That why is important to learn new skills to remain relevant in the workforce.
Learning new skills and improving our knowledge is of great necessity.
Never stop to learn and adapt.
This is an eye opener. I believe in most countries, minimum wage has lost its importance
In my country especially, it is as good as not being able to cover any expenses, thanks for reading.
In my country especially, it is as good as not being able to cover any expenses, thanks for reading.
Good article, one of the most important things in this work and salary relationship is that "the employer will pay you enough not to quit and you will work enough not to get fired", that is the relationship between employer and employee.
Very true, this relationship has remained that way for a long time.
Hello friend, I think it is important to establish a limit because there are those who want to exploit people and not pay what is legally established. Nowadays, with so many migrations, it is something that has become very established.
Thanks so much for reading.