In contemporary world, there is an increase in the number of individuals fighting for the minority of workers’ salary. While raising the standard wage can brings several benenfits such as decreasing poverty and improving productivity and morale, it might cause adversities about employment and inflation. In the following essay, both merits and demerits of this phenomenon will be discussed.
On the one hand, it is understandable why raising the workers’ income induces several beneficial outcomes. The most important of this is the poverty reduction, Particularly, higher salary could lift a wide range of employees out of poverty, and they can improve the quality of their life without reliance on grant from government. This leads to the mitigation of financial burdensome in local authorities. Otherwise, with more disposable wage comes the promotion of productivity, Admittedly, higher wage paid could make employees feel more satisfied, resulting in more sustainable retention and the work-rate enhancement since workers become more valuable.
On the other hand, there are several downsides induced when it comes to the rise of worker’s salary. The first point supporting this idea is the ratio of unemployment. To be more specific, companies tend to reduce a large number of low-skilled workers, searching for other techniques settling assignments automaticallyin order to offset high labor cost for remaining employees, alongside the dependance on clients. As a consequence, the proportion of job-losting persons would go up. Moreover, the inflationary level would also climb along with the wage paid. Many enterprises have to boost the price of their products to earn more money paying for clients’ salary. Resultantly, employees with more available finance might not cover their lives at present.
In conclusion, while bringing advantages of fostering the living standard and value for workers, raising the minimum of financial income in conductive to the detrimental effects on economics and recruitment.