What causes minimum wage changes?
The state of the country's economy and the general political climate tends to incite changes in the minimum wage laws for its labor. Most of the developed countries have minimum wage laws that guarantee the lowest paid workers a certain hourly rate. Typical objectives of the minimum wage law are to determine the basic standard of living for the population and to remove poverty. Thus, economic statistics seem to indicate that the standard of living decreases or increases poverty, the adjustment of the minimum wage is considered to be a suitable strategy for the arrest of these negative economic trends. The minimum wage is a standard Hot button. Privaters of Pro-Business claim that the basic wage rate suppresses small businesses and prevents hiring, while the lawyers insist on the right of each worker to obtain a wage. The proposed changes in the minimum wage laws are a political problem that distinguishes access to Ety and workers between different political parties, but rarely make different political attitudesin fact to change laws.
changes in the minimum wage law are rarely happening and are usually considered to be a reaction to inflation and declining standard of living. Inflation is more expensive for people to buy common consumer products. If the country experiences a period of growing inflation, this may cause a change in the minimum wage so that the lowest paid workers can continue to buy the same amount of goods and services, which eventually maintains balance in the overall standard of living.
Governments carefully monitor the lower class as an indicator of the power of the economy. For example, governments determine the boundary of poverty, which indicates how much a family can earn and still classify as living in poverty. If the poverty line Cutoff rises for any reason and places more country population below the line, it indicates a declining standard of living. Changes in minimum wage laws can be considered a potential drug.
On the national and local level ExisThey put the laws on the minimum wage. In the US, for example, the Federal Government sets a national minimum wage, but each state can determine the minimum wage at any point higher than the federal baseline. As a result, they have factors that can cause national changes in the minimum wage laws, differ from local factors. Local changes may be associated with the desire of a certain area to be perceived as pro-business or pro-workman. The political influence of immigrant or minority populations, which have a higher number of workers with low wages or the power of trade unions or other advocates of labor, can also be factors.