Minimum wage debates in America are always difficult combinations of economics and socio-political ethics. This discussion is about “The Price of Equality,” an idea that highlights the importance of equality when it comes to employee wages. The minimum wage setting is essentially more than just a simple economic policy. It is actually an expression of a societal conviction regarding the worth of work and decent living for everyone, as well as the minimum level of life that a person should be able to afford. This paper analyses the positive impacts of minimum wage policy in the U.S. and discusses why it is important for sustainable socioeconomic development.
Minimum wage laws help to raise the standard of living for many American employees. These types of laws guarantee the provision of a minimum wage that lifts people and families above the poverty threshold. This idea of “the Price for Equality” manifests itself here greatly. In this case, high wages give a worker an opportunity to buy food, medicine, and housing, as indicated by Clemens (2021). Apart from improving their well-being, it is likely to have an overall impact on the economy as well. Such disposable income is spent by low-income workers on various goods and services, leading to an increase in demand as well as economic growth. This implies that consumers spend even more, thus resulting in additional jobs and a better economy. Additionally, when people have enough money, they don’t depend on government support. This is beneficial because it reduces public deficits. This relates to addressing poverty by giving the lower economic echelons an opportunity to attain an equitable level of living.
Another aspect, as seen through the “Price of Equality,” is the enhancement of equal chance in the labor market. Wolfson and Belman (2019) argued that minimum wage laws assist in the evening of the playing field to ensure no business can pay excessively suboptimal salaries. However, it holds significant importance in sectors where there is lopsided market influence between bosses and employees, exposing the latter to possible victimization. The government sets a minimum wage, which is supposed to be paid by employers to each worker regardless of being in what industry and how big an employer is. This not only guarantees the safety of workers but also creates a conducive industry for healthy competition. It is more productive for companies to introduce innovations to increase efficiency and lowering production costs rather than just using an inexpensive labor force. It is possible to develop a healthier market dynamic by creating an environment in which businesses compete based on the quality of goods and services instead of the level of labor compensation (Himmelstein & Venkataramani, 2019). In addition, such legislation helps reduce wage gaps, ultimately leading to a more united society. Fairly compensating workers helps increase productivity and employee engagement; this also means better economic performance.
In addition, minimum wage laws have a broader socioeconomic purpose, which relates to “the cost of equality.” For instance, they help to reduce the gender and race pay gap. Dickens, however, argues that throughout history, women and minority groups have been under-represented in low-paying jobs. The minimum wage helps reduce the pay gap between the two groups and their counterparts, ensuring a more competitive work environment. It is a matter of ethics, social justice, and economics. A more diverse talent pool is created when all population members have economic opportunities, and no one is marginalized. Reducing wage gaps also contributes to a stable and cohesive society. This is because such gaps often stem from other economic disparities which cause tension. The second component is the possibility of better health outcomes. A recent study conducted by Kaufman et al. (2020) demonstrated that a high-income level translates into better health and longevity. Increasing minimum wages results in healthier workers and, ultimately, a healthier population by improved healthcare, nutrition, and living conditions (Feldman, 2015). This helps improve people’s quality of life individually and collectively, reducing healthcare costs in a sustainable healthcare system.
In conclusion, setting minimum wages in the U.S. based on “the Price of Equality” offers many advantages. These laws lift the poor working class, thus making them more productive while increasing their purchasing power, boosting the economy. They encourage a market for fair labor and support innovation and competitiveness among businesses rather than a cheap labor exploitation market. Additionally, lowering minimum wages helps reduce the gender or racial wage gap, thus increasing diversity within the workplace. They can also boost public health and lower society’s overall healthcare expenses. Despite the debate on the actual amount of minimum wage, one thing is certain – minimum wage enhances fairness and wealth among our communities. The U.S. has set a goal of promoting inclusive and sustainable growth as it pushes toward economic progress.
References
Clemens, J. (2021). How Do Firms Respond to Minimum Wage Increases? Understanding the Relevance of Non-Employment Margins. Journal of Economic Perspectives, 35(1), 51–72. https://doi.org/10.1257/jep.35.1.51
Dickens, R. (2015). How are minimum wages set? IZA World of Labor. https://doi.org/10.15185/izawol.211
Gertner, A. K., Rotter, J. S., & Shafer, P. R. (2019). Association Between State Minimum Wages and Suicide Rates in the U.S. American Journal of Preventive Medicine, 56(5), 648–654. https://doi.org/10.1016/j.amepre.2018.12.008
Himmelstein, K. E. W., & Venkataramani, A. S. (2019). Economic Vulnerability Among U.S. Female Health Care Workers: Potential Impact of a $15-per-Hour Minimum Wage. American Journal of Public Health, 109(2), 198–205. https://doi.org/10.2105/ajph.2018.304801
Kaufman, J. A., Salas-Hernández, L. K., Komro, K. A., & Livingston, M. D. (2020). Effects of increased minimum wages by unemployment rate on suicide in the USA. Journal of Epidemiology and Community Health, 74(3), jech-2019-212981. https://doi.org/10.1136/jech-2019-212981
Wolfson, P., & Belman, D. (2019). 15 Years of Research on U.S. Employment and the Minimum Wage. LABOUR, 33(4), 488–506. https://doi.org/10.1111/labr.12162
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