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Minimum Wage

definition, synonyms and explanation


liveable wage

What is Minimum Wage

The minimum wage is the lowest hourly wage that an employer can pay their employees.

Minimum Wage explained

The minimum wage is the lowest hourly wage that an employer is legally allowed to pay their workers. The first minimum wage laws were passed in the United States in the early 1900s as a way to protect workers and help ensure that they could earn a liveable wage. The federal minimum wage is currently $7.25 per hour, but many states and cities have enacted their own minimum wage laws that are higher than the federal rate.

Minimum wage laws are designed to protect workers from being exploited by their employers. By setting a minimum hourly wage, workers are guaranteed to earn a certain amount of money for each hour that they work. This ensures that workers are able to earn a liveable wage and can support themselves and their families.

Minimum wage laws are also designed to help reduce inequality and poverty. By setting a minimum wage, workers at the bottom of the income ladder are given a raise, which can help to reduce the overall inequality between rich and poor. Additionally, by ensuring that workers earn a liveable wage, minimum wage laws can help to reduce poverty levels.

While minimum wage laws are designed to help protect workers and reduce inequality, there are some criticisms of these laws. One argument is that minimum wage laws can actually lead to higher levels of unemployment. This is because, when the minimum wage is raised, employers may be less likely to hire workers, as they will need to pay them more money. This can lead to workers being laid off, or not being hired in the first place.

Another argument against minimum wage laws is that they can hurt small businesses. This is because small businesses often have tight profit margins, and raising the minimum wage can make it difficult for them to stay afloat. Additionally, small businesses may be less likely to expand or hire new workers when the minimum wage is raised.

Despite these criticisms, minimum wage laws are still in place in many parts of the United States. These laws continue to help protect workers from being exploited by their employers and help to reduce inequality and poverty.

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