THE PROS AND CONS OF MINIMUM WAGE

THE PROS:

Minimum wage increases the income of workers, especially those working in industries that are known to pay quite poor wages
Increased income due to minimum wage enhances employee’s satisfaction and productivity
Minimum wage helps citizens to afford needs and wants, reducing the risks of societal envy and conflicts
Minimum wage helps to decrease wage differences and income inequality
Higher income due to high minimum wage increases tax revenue and national GDP

THE CONS:

Minimum wage could result into potential job losses as companies work within budget to maximize profit
To reduce labor cost, companies might outsource to foreign countries through global sourcing
High income due to minimum wage may result to inflation as people are likely to spend more
People who start their career with jobs that pay low wages may not get a job and be trapped in poverty
Implementation of minimum wages in companies may be against the fundamental right of freedom

International Marketing Center