Should the Minimum Wage Be Increased to a Living Wage?

The employees’ wages should be raised to a living wage to enable each employee to meet their needs. Recently, people employed full-time and paid the minimum wage need help to afford basic needs such as shelter, food, qualitative health care, and education. This situation results in poverty and economic insecurity for the employee and the society. It delays personal development, thus perpetuating the poor financial status for the growth of the society as well. Although increasing the minimum wage to the living wage may be seen to cause reduced hiring, it will help millions of people be committed to their work place, increase productivity and boost spending within the economy for economic development.

An increase in the minimum wage to the level of a living wage would enhance productivity as well as motivation amongst the workers. Several authors posit that when remunerated fairly, employees tend to be more motivated, committed, and productive (Alam et al., 2020). It has also been discovered that when workers do not have concerns such as the ability to pay their bills, they can concentrate on their work and be of added productivity to their employers. Additionally, high wages decrease employee turnover and, therefore, companies' expenses on their recruitment and training reduces. They indicate that it is profitable for a business to practice paying its workers a living wage because it would increase productivity.

Moreover, increasing minimum wages is needed to decrease income disparity, which has been rising for the past few decades. This higher minimum wage means that the positive impacts of increased economic activity and wealth are spread across various citizens (Engbom & Moser, 2022). It can assist in narrowing down the disparity between the poor and the rich, which is needed to make the economy more appropriate for every nation. Equality can likewise be beneficial in decreasing the likelihood of other social issues since it is understood that many problems ranging from social vices to insecurity can originate from unequal income distribution in a society. Hence, the idea of a living wage is most beneficial as it can help promote social inclusion and reduce societal unrest.

Other opponents have criticized raising the minimum wage to a living wage, stating that when this measure is implemented, employers may decide to lay off workers to cater to the additional costs. They argue that small businesses will be hardest hit and cannot afford to pay more for wages and may be forced to shut down, which may result in laying off workers. However, research evidence has presented facts proving that higher minimum wages do not negatively impact employment if the increase is moderate (Clemens, 2021). Indeed, when these workers are paid more, they can save and spend more on products, which stimulates employment and overall economic development. A living wage's positive social impacts on consumer spending override its potential negative impacts.

To sum up, raising the minimum wage to what can be considered a living wage is imperative because it creates fairness in the economy and a better standard of living for millions of employees. There is an argument that it may cause job losses, but overall, its advantages have been observed to outweigh the disadvantages. Living wages may help improve the standard of living of individuals and families, boost employees' morale and productivity, decrease the rates of turnover, and contribute to the growth of the economic potential. Additionally, it would contribute to reducing the existing inequality of income distribution in society, thus ensuring social justice and stability. Hence, those in the policy-making institutions should consider increasing the minimum wage to living wages to enhance the economic standards for the entire population.