Marketing Analysis Of Minimum Wage Public Policy (Essay Sample)

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Public Policy Analysis: Minimum Wage
In the United States of America, the minimum wage is a controversial issue. The public policy requires all employees to follow federal minimum wage (Brown 2101). Additionally, some states and cities have imposed a higher minimum wage in their jurisdiction. Advocates of this policy argue it’s important to provide a fair hourly wage to workers; opponents, on the other hand, highlight several problems with minimum wage system (Brown 2110). These problems include unemployment; economists argue that the minimum wage will result in a wage floor that will price cheap labor out of the market and this will reduce the number of low-wage jobs (Brown 2111).
The minimum wage policy was introduced in 1934 in New Deal, and this policy affects low-wage workers, whereby it will allow them to earn “living wages” that will enable them to realize basic economic security for themselves and their families (Brown 2120). Additionally, they will be able to promote the country’s equity by redistributing income away from the alleged excessive corporate profits towards labor (Brown 2139). Moreover, this policy affects employers as they will have to raise the wage of their employees. This could force small businesses out the market and this may eventually lead to increased rates of unemployment across the country (Brown 2163).
It is evident that this policy aims to reduce poverty levels in the USA. But implementation of this policy will result in positive and negative impacts on ...