The Price Of Minimum Wage - 1406 Words

To analyse and draw conclusions on minimum wage in relation to its standing in business law, we first of all need to define what the meaning of the term is. National minimum wage was introduced in 1998 through the national minimum wage act. This enforced that employers would pay each employee a set value set by the government per working hour. One of the main benefits of this was that the most low skills jobs within society received a fair wage. Setting the price of minimum wage is a complex task as the main priority is to reduce the negative effect on the labour market, creating benefits outweighing the costs. Inflation and minimum wage have a very close relationship, with inflation being the annual increase in the price of goods and services. As inflation rises, it is natural for minimum wage to follow at a similar rate. In october 2014, minimum wage increased 3%, whereas inflation increased 2%. This shows an improvement in the real term income for over 1,000,000 of the lowest paid workers in Britain. In the UK, we do not have a legal system which is codified. Our laws are set out in a few sources, which consists of common law, legislation and EU laws and conventions. This means that there is not a document which sets out the laws which we must abide by. Alternatively, cases in legal history set a precedent for future cases indication the sentence or decision to give. In order for a bill to become a law it goes through a procedure called consideration. The bill is passedShow MoreRelatedMinimum Wage Is The Price Floor For Wages908 Words   |  4 PagesMinimum wage is the price floor for wages, meaning that it is the lowest possible wage per hour. The minimum wage is set so no worker will be oppressed or underpaid, it makes people able to live. The minimum raise rises constantly so it can keep up with the cost of life which is always increasing as well. The current minimum wage in Arizona is 8.05$/hour. People might think that minimum wage has no downside, but surprisingly it has, if someone has worked in a place for years and his wage increasedRead MoreMinimum Wage Is The Price Floor For Jobs Essay1239 Words   |  5 Pages Minimum wage is the price floor for jobs. Many people are either for it or against it, however not denying the fact that it is very important to employees. Because, minimum wage creates a pathway for workers to sell their labour though getting paid less, businesses willingly hire them and workers gain experiences. Yes, in many ways it can benefit both the employers and the employees but there is always a down side to it. When it comes to revenue businesses can only spend so much and it doesRead MoreThe Minimum Wage Law Should Not Exist1684 Words   |  7 PagesThe minimum wage law was first enacted in January 1938 (Mutari, Ellen), and since then, people have falsely been led to believe that it is beneficial to the economy as well as the general population. It has commonly been seen as a method to reduce poverty by redistributing income in order to make sure that people earn a healthy, living wage; however, evidence has shown that it in fact does just the opposite. Forcing a minimum wage goes against the free market, and severely disrupts the natural processRead MoreMinimum Wage in Countries773 Words   |  3 PagesMinimum wage is the lowest wage permitted by law or a special agreement that can be applied for an employee. Governments set minimum wage on business for reduced poverty and increases in the standard of living. In 2009 from six dollar and fifty five cents to seven dollars and twenty five cents, minimum wage has increased and has been beneficial up to the minimum wage. In 2014 it will be a dollar up so it is going to be tough. The issue is whether to raise the minimum wage or not. For this reasonRead MoreMinimum Wage And The Wage845 Words   |  4 Pagespresidential election of 2016, low-wage workers began demanding for a raise in the minimum wage to fifteen dollars an hour. On April of 2016, governor Jerry Brown signed the minimum wage to be raised to $15–an-Hour in California by 2022. It is hoped that raising the minimum wage will reduce the economic disparity between the wealthy and the poor and to help people who earn minimum wage gain more purchasing power. However, the article California Moves Toward $15-an-Hour Minimum Wage by Alejandro Lazo and EliotRead MoreMinimum Wages During 21st Century America1649 Words   |  7 PagesMinimum Wages in 21st Century America In the United States the time has come for the next president to be elected and the political fervor has come early this year with an unconventional, surprisingly interesting primary race. With the coming of a new commander in chief the incessant grilling of the candidates has begun and issues, such as poverty in the United States, are being given the national spot light during debates. The issue of poverty has recently gained traction among citizens as wellRead MoreMinimum Wage And Its Effect On The Workplace886 Words   |  4 PagesPrice floor is most commonly defined as a government price control that establishes the minimum allowable price that can be charged for a particular good or service (Ragan, 2013). The most popular and recognisable examples of a price floor is minimum wage. Fundamentally, a minimum wage is the lowest hourly wage that employers can legally pay their employees (MCEE, 2008). For much of the past century, the minimum wage has been a controversial subject amo ng policymakers and economists around the worldRead MoreDemand Supply , Examine the Argument in Favour Against Minimum Wage Law in Uk1415 Words   |  6 Pages * (Using Demand Supply: examine the arguments in favour against minimum wage law in UK*) * *Total words: 1,402 Demand It refers to the willingness and ability of buyers to purchase goods and services at different prices. Supply It refers to the willingness and ability of sellers to provide goods and services for sale at different prices What* *is minimum wage? A minimum wage is the lowest monthly, daily or hourly that employers may legally payRead MoreAmerica s Minimum Wage At Arizona s Current $ 8.05 Per Hour Essay1174 Words   |  5 Pagesâ€Å"A yes vote on Proposition 206, also called the Healthy Working Families Initiative, would increase the minimum wage from Arizona’s current $8.05 per hour to $10 per hour by 2017 and eventually to $12 per hour by 2020† (Rau). While the first part of Prop. 206 seems to be getting more attention in the media and form the business community, the second part will trigger the most disruptive changes for Arizona employers, especially small employers. Recent polling indicates that nearly 60 percent of likelyRead MoreA Higher Minimum Wage May Help Workers Essay1251 Words   |  6 PagesLabor Standards Act established minimum wage in 1938 (Grossman). Overtime, the minimum wage has been raised in order to account for inflation (BLS 14). However, what the o verall economic impact of raising the wage will be is once again a daunting and extensive question. The controversy over raising the minimum wage seems to come from often conflicting economic opinions. While raising the minimum wage is done with good intentions, critics argue that a higher minimum wage will harm those it is actually