Essay about Should The Minimum Wage Be Increased Inequality?

1560 Words Jul 15th, 2016 7 Pages
Overview
The key economic concept that will be used as the basis to this newspaper article will be “Minimum Wages”. The Fair Work Commission ruled that Australian workers on the lowest incomes should be given a 2.4 per cent rise in the minimum wage — lifting the benchmark by $15.80 a week to $672.70. Business groups warned against the higher staff costs at a time of low inflation and predicted the decision would put upwards pressure on wages across the whole economy. Retailers have also warned they may have to slash their workers’ hours or put a freeze on hiring new staff after the national minimum wage was increased. Minimum wages are political, and the prospects for reform depend on what the political context allows. Government believes the purpose of the minimum wage is to enable reduce inequality. Businesses will see that it burdens enterprise. Economist believe although it reduces total employment as some workers benefit from the higher wage while others are unemployed because of reduced demand for the higher-priced labour. Fair Works Australia believes economic circumstances provide an opportunity to improve the relative living standards of the low paid. Australia Council of Trade Union believes that more than 1.8 million workers needed more help when the minimum wage was falling ¬behind average weekly earnings for the rest of the workforce.

Support and justification
Australia lowest paid workers will get $15.80 extra a week, after the Fair Work Commission…

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