Advantages of minimum wages

Answer 1

The advantages of a minimum wage is that from an employers perspective it tells workers of the level of training and productivity that is needed. For workers it provides protection from poverty (China anybody). However, if it is raised to high, it cause high unemployment and inflation's the costs of goods are too much to make. Added to the global economy, where busniesses would just shift (opps they are anyway) to where there is cheaper labour. On the other hand if the minimum wage is set too low, workers end up in poverty and cannot afford to consume products which would also see businesses go under and unemployment rises.

The other side of getting rid of the minimin wage is the free market. Once again though I refer to the sweat shops in China where although there is a rise in a middle class 700 million people still live below the poverty line. Thus setting the minimum wage is a balancing act. There is more I can say but I don't want to go on

I also would add one argument is that there is in international minimin wage which could also be used as a tool to lower third world poverty, Maybe?

Answer 2

what are the advantages in give salary or wages to ann employee? what are the advantages in give salary or wages to an employee?

Answer 3

It causes cost push inflation.