What are your thoughts about the minimum wage? Is it a job killer or a way of ensuring companies pay their workers fair wages and what do you think about its effects on employment?
I think it depends from the economic and social phase and from overall development in which one country is. In the developed country there is not reasons that can impede the statement of minimum wage. In the poor countries is almost impossible. This because the basic need of everyone are to many and higher compared to the possibilities of payments that can be given by the employers. So the minimum wage which represent the vital minimum might be higher than the highest wage in the country. This make the placement of minimum wage objectively impossible.
Depends too from the economic policies which one country want to follow. There are country which are fanatics of freedom in economy and don't want such rules which limit this freedom.
But depends even from specific factors which can determine if this thing is possible or not. Independently from the phase of development one country is.
About this I can give the example of my country. And we are not to poor. Our GDP per capita is 4,619.2 us dollar. And our incomes level are classified as "upper middle income" according to World Bank. These are data that testify that our life must not be a poor life. There are to many requests from to many institutions and organisations in the country to place the minimum wage. Yet is not made. Because the most of economic revenue come from one specific entrepreneurship called "fason" which work with raw materials that come from out of our country (they give more than 30% of exports compared with the total of exports of my country and have a strong power in economic policies here). In my country is made only the processing work. It is a simple work which don't give to much added value. In this way the revenue created is low. Then after this work the finished product is sold in the country of origin of raw materials or when the foreign owners want. All the prices of all the phases of the work made are stated by the owners of raw materials. When is the time of giving the revenues, being justified from the low revenue assured by the work of our employees they don't give to much. So our owners of manufactory have nothing to do. Their cannot go over a certain level of wage. In this way the wages are defined and no one can "play" with those. There are thousand and thousand people employed in this field of economy here (and are to much more others that wait to be hired). Their wage is under the minimum wage. If our country applies the minimum wage all those employers remain without work. The conclusion can be understand by everyone itself.
