The minimum wage debate is an issue that the government, employers, and employees contend with. For a long time, the minimum wage has remained the same, increasing the concerns as to whether it rightfully compensates workers. Whether to increase minimum wage is an economical concern as well as an ethical concern with different stakeholders involved. To decide on whether to increase the minim wage or to adopt a multi-faceted approach, the paper will apply the utilitarian, justice and common good frameworks.
Does increasing the minimum wage offer equality?
The low and stagnant minimum wage has contributed to the huge gap between the rich and the poor (Shapiro, 2015). This therefore means that leaving the minimum wage as is, maintains the status quo which is unfair for low income earners. As Shapiro emphasizes, all American workers are entitled to payment that can support their basic needs (2015). The minimum wage should, therefore, be increased to bridge the gap between the rich and the poor and to enable low income earners to live a decent life. However, it ,may lead to employers feeling overburdened which will result to the reduction of the number of workers, reduction of profits or the limitation on the number of working hours. Increasing the minimum one way to ensure equality but a more balanced approach would ensure sustainability.
Which option serves the interest of all stakeholders?
In deciding whether to increase the minimum wage or to keep it where it is currently, it is crucial to consider whether it serves the interests of all stakeholders. The government desires a good quality of life for its citizens while at the same time it is concerned about maintaining a manageable wage-bill. The employer on the other hand, requires a manageable operation cost and a higher minimum wage will increase it. The employee, on the other hand, wants his pay to reflect the current status of the economy and to support his needs. A big concern usually originates from employers who fear that increasing the minimum wage will lead to bigger costs for the organizations. Maintaining the minimum wage as is now does not serve either of the parties. According to Nichols, a higher minimum wage will boost employment rates temporarily (2013). Therefore increasing the minimum wage would benefit the government and the employees, while disadvantaging the employer. The government should come up with programs to mitigate the possible reduction in employment rates following the peak occasioned by minimum wage increase (Nichols, 2013).
Which option will have more benefits and fewer demerits to those concerned?
Increasing the minimum wage will disadvantage employers, who will in turn initiate measures to reduce their operating costs. The reduction will negatively impact employees through layoffs and reduction of working hours. This option, therefore, only merits the employees for a brief period of time but is not sustainable. Incorporating several programs to support minimum wage will lessen the burden on all parties. As proposed by Lerman, policies should be put in place to cushion low income workers and remove the focus from the minimum wage (2013).
Conclusion
In deciding whether to increase minimum wage or have a hybrid program to cushion low income earners, it is important to put into consideration the common good and which option serves the interest of most stakeholders. A hybrid policy which maintains a reasonable wage, improves programs life food stamp to cushion workers, encouraging flexible work hours for workers to take on more jobs; is the only sustainable way of addressing the wage issue.
References
Lerman, R. (2013). Why Focus on the Minimum Wage?. Urban.org. Retrieved 27 May 2016, from http://www.urban.org/urban-wire/why-focus-minimum-wage
Nichols, A. (2013). A Higher Minimum Wage May Temporarily Boost Employment. Urban.org. Retrieved 27 May 2016, from http://www.urban.org/urban-wire/higher-minimum-wage may-temporarily-boost-employment
Shapiro, I. (2015). Today Marks Six Years Since Last Federal Minimum Wage Hike | Center on Budget and Policy Priorities. Cbpp.org. Retrieved 27 May 2016, from http://www.cbpp.org/blog/today-marks-six-years-since-last-federal-minimum-wage-hike
