Minimum wage workers are usually young workers whose earnings are sufficient to sustain them. They mainly earn to pay bills and rarely make any savings. They are generally paid per hour. About five per cent of these workers are without a high school diploma, four per cent have a high school diploma, and two per cent are college graduates. Therefore this work bracket is mainly associated with less literate people.
Raising the minimum wage has many benefits to the individuals and the nation as a whole. For instance, a rise in wages will reduce how much citizens depend on the government. Therefore, the government will channel the funds it would have used in supposing such people into other projects. The services offered by minimum wage workers are very important, hence raising their pay will act like a motivating factor making them work even harder. This will in turn, increase levels and quantity of production.
Inflation is one of the shortcomings in raising the earnings of minimum wage workers. The supply of money in the economy will be much higher, translating to a rise in the prices of goods and services. Since people are different, a raise in salary is likely to make some less productive as they are satisfied with what they earn. Incidences of school dropouts are also most likely to rise if minimum wages are raised.
In my opinion, the minimum wage should be standardized so that it does not exploit workers, and at the same time, it is fair for efficiency to the economic affairs. Also, the cost of essential needs such as medical care for minimum wage workers should be subsidized.