Economics Discussion: Examining the Arguments for Minimum Wage

This assignment presents a discussion on the necessity of a minimum wage, examining the perspectives of economists like Robert Reich and John Stossel. It delves into the economic implications of minimum wage laws, considering both the potential benefits and drawbacks within a capitalist market system. The analysis highlights the debate surrounding income inequality, employment levels, and the role of government intervention. The assignment also explores the arguments for establishing minimum wage laws to protect workers and ensure a basic standard of living, while acknowledging the counterarguments related to potential unemployment and market competitiveness. This assignment, contributed by a student, is available on Desklib, offering insights into economic principles and current policy debates.

Running head: NEED FOR A MINIMUM WAGE
Need for a minimum wage
Name of the Student
Name of the University
Author Note

1NEED FOR A MINIMUM WAGE
Table of Contents
Introduction......................................................................................................................................2
Views of Robert Reich.....................................................................................................................2
Views of John Stossel......................................................................................................................2
Need for laws establishing a minimum wage..................................................................................3
Conclusion.......................................................................................................................................3
Bibliography:...................................................................................................................................4

2NEED FOR A MINIMUM WAGE
Introduction
Almost all individuals belonging to the human civilization are desirous of pursuing a
decent standard of living. They are in search a materialistic life which would be able to fulfill all
of their wants in the segments of food, clothing and shelter. These are the basic necessities of life
which aids an individual to survive in the community. The purpose of this paper is to understand
the concept of minimum wage and to analyze the various debates that are in place with regard to
this issue.
Views of Robert Reich
Robert Reich is an American economist who presented a documentary in the year 2013
titled “Inequality for All”. This documentary begins with the financial crisis that the world
witnessed in the twenty first century from 2007 to 2008. During this time, the crisis of income
inequality gained a large public concerned as the gains from the various economy were found to
be concentrated in the hands of only a few individuals. In the movie it was stated that around
four hundred Americans owned more wealth than the one hundred and fifty million commoners
who could not afford even a basic standard of living.
Views of John Stossel
John Stossel is considered to be a vocal opponent to the idea of minimum wage.
However, in this context, it is important to understand that Stossel is not opposed to the raising
of the minimum wage but to the entire idea of having a minimum wage in the first place. This
idea is held by him because of the fact that he believes that having a minimum wage would
increase the level of unemployment as faced within the concerned country since the individuals

3NEED FOR A MINIMUM WAGE
would be under the impression that they would receive at least the money needed for their
survival.
Need for laws establishing a minimum wage
The analysis of the two videos revealed that the debate surrounding the issue of minimum
wage is considerably significant in the contemporary world order. The capitalist system of
market production signifies the presence of a competitive nature of economy. In other words, the
firms are required to produce the goods and services at competitive prices, which, in turn, means
that the amount paid to the workers has to be low. This leads to exploitation of the workers in the
face of no minimum wage.
Thus, there is a need for laws across the societies which establishes a minimum age for
the workers. Certain conditions can be set up which ensures that the individuals have to work in
order to be eligible for a minimum wage. This would at least ensure their basic means of
subsistence to survive.
Conclusion
In conclusion, it can be observed that the capitalist market economy does not provide for
the welfare of the workers in the firms of the society. However, while the need for the generation
of profit is necessary to maintain competition in the market, there is also a need to maintain the
human rights of the people in the society.

4NEED FOR A MINIMUM WAGE
Bibliography:
Gentry, M., 2017. Factors That Lead States to Raise Their Minimum Wage.
Kreiner, C.T., Reck, D. and Skov, P.E., 2017. Do lower minimum wages for young workers raise
their employment? Evidence from a Danish discontinuity. Review of Economics and Statistics,
pp.1-45.
Luce, S., 2017. Living wages: a US perspective. Employee Relations, 39(6), pp.863-874.
Storer, A. and Reich, A., 2019. ‘Losing My Raise’: minimum wage increases, status loss and job
satisfaction among low-wage employees. Socio-Economic Review.