The issue of minimum wage is much more complex than people see at face-value. Minimum wage ensures a certain standard of pay, however it also limits entrepreneurship, and the ability to employ lots of people.
Pros:
- Abolishing minimum wage reduces unemployment, as companies can afford to employ more people. More people are employed for slightly lower pay.
- There is no distinction between unskilled and slightly skilled workers.
- Encourages entrepreneurship and the creation of new companies, as workers are cheaper, and you can employ more to fuel high-workforce demands.
-When you force companies to pay certain wages, you increase the likelihood that those companies will outsource jobs to foreign workers, where labor is much cheaper. This is terrible in terms of human rights, and in terms of the economy.
Cons:
- Minimum wage is an important piece of legislation to prevent businesses from abusing the labor market.
- It forces businesses to share some of the vast wealth with the people that help produce it.
- Unemployment is relatively low in Australia, we don't need to abolish minimum wage.
- Adults who currently work for minimum wage are likely to lose jobs to teenagers who will work for much less.
It is proposed that the government should abolish minimum wage