Should We Abolish The Minimum Wage?

Jianxun Huang

doi:10.54097/ajmss.v5i2.20

Authors

Jianxun Huang

DOI:

https://doi.org/10.54097/ajmss.v5i2.20

Keywords:

NMW, Unemployment Rate, Social Welfare

Abstract

The discussion on minimum wage is a long-standing debate in economics. The fundamental objective of a NMW is to assist individuals who are remunerated at a low wage that yields below average living standards. To mitigate poverty, the government enacts laws that compel companies to compensate their employees at a wage that surpasses the equilibrium free market price for labour. On the other hand, an increase in the national minimum wage may also lead to an increase in the social unemployment rate. This essay will examine and critically evaluate the merits and drawbacks of NMW policies, and conclude that governments should not abolish the minimum wage altogether.

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