Minimum Wage and Wage Policy: Article Summary
The concept of minimum wage has been a crucial part of the payment framework used in the business setting. However, previously designed to address the issue of poverty and prevent the cases of employers refusing to meet staff members’ basic needs, the notion of minimum wage may have lost its significance in the modern economic setting. In his article “From a narrowly defined minimum wage to broader wage policy,” Levin-Waldman (2011) claims that the current marginalization of minimum wage is unjustified since the notion in question can be utilized to improve the socioeconomic situation within the community and promote the principles of democracy.
The concept of minimum wage has been entrenched in the field of economy up until recently, with multiple sources supporting its application from a range of perspectives. Levin-Waldman (2011) chooses to discuss the issue of income inequality in relation to minimum wage first, pointing out that the application of minimum wage policies is likely to minimize the specified injustice. Reflecting on the nature of the observed problem, Levin-Waldman (2011) specifies that structural alterations within the economic framework, both on local and global levels, must have been the driving force behind the rapid growth of inequality within a range of communities. In turn, the use of minimum wage as a standard for providing employee benefits has created an opportunity for preventing organizations from exacerbating inequality rates (Levin-Waldman, 2011). Therefore, minimum wage should be seen as a means of leveraging the current inequality issues and improving the well-being of those suffering from poverty.
Additionally, from the political standpoint, minimum wage could be seen as the reflection on the ideological insecurities of the participants of the dialogue. Therefore, removing the notion of minimum wage from the sociopolitical context may imply further political division within the community, causing its members to experience infringement upon their rights, particularly, the right to work and receive appropriate payment for it.
Overall, Levin-Waldman (2011) concludes that there is a notable distinction in how the concept of minimum wage is viewed in the political and economic contexts. Emphasizing the discrepancies between the two perspectives, Levin-Waldman (2011) simultaneously specifies that both perspectives support the necessity of minimum wage as a criterion for measuring the extent of social well-being. Namely, Levin-Waldman (2011) specifies that, while the current approach toward evaluating the significance of minimum wage questions its economic feasibility, it largely ignores the political importance of the phenomenon of minimum wage. Therefore, the concept of minimum wage should remain a part of the current economic and sociopolitical landscape.
By pointing to the inconsistency in the perception of the minimum wage as a restrictive and broadly negative phenomenon, Levin-Waldman (2011) proves the absolute necessity of minimum wage as a criterion to be utilized actively in the financial relationships between employees and employers, particularly, in the realm of global trade. The article offers extensive evidence to support the necessity to keep minimum wage as an economic concept in the range of notions currently used to define key aspects of trade-related issues. Thus, the needs of marginalized groups can be protected from dishonest employers who seek to profit off of people from disadvantaged backgrounds. Moreover., with the use of minimum wage as an economic notion, the problem of income inequality can be managed to an extent, which means that minimum wage is an indispensable economic concept.
Reference
Levin-Waldman, O. M. (2011). From a narrowly defined minimum wage to broader wage policy. Review of Social Economy, 69(1), 77-96.