Raising the National Minimum Wage Is Futile

Raising the National Minimum Wage Is Futile The government often tries to "end poverty" by mandating an increase in the minimum wage, which employers must pay to their workers. This measure has been tried many times before and always fails for two clear reasons:

1. Increasing the cost of employment means less employment. Employers hire people when they judge the benefits of hiring  them to be greater than the risk When the government mandates higher wages thus adding more risk to hiring, employers become more Reluctant

Mandating higher wages makes it harder for employers to take the risk of hiring new workers, especially if they are young and inexperienced. So young, poor, unskilled and inexperienced people find it harder to get jobs.

2. The increased cost of employment leads to higher prices. When the cost of labor goes up, employers pass on this cost to customers through higher prices. This means everything gets more expensive, and the benefit of a higher hourly wage gets eaten up by these rising prices. So, the value of money goes down,as inflation reduces its power to buy things. Increasing people's hourly wages doesn't really help the poor.

A Better Way The real way to end poverty is by training Equip people with better knowledge and skills which they can bring to the market place for higher wages!

Instead of telling employers to pay more per hour, the government should provide more training programs that teach people useful work skills. Skills they can use to earn higher wages in the market.

Politicians love quick fixes They like to announce a new quick fix policy to eliminate poverty. If increasing the minimum wage really worked, then it would’ve worked already! Since the idea has been tried many, many times. It never works for the reasons already listed

The politicians keep doing it because they think It makes them look good.

Training and development Training and development is the right way forward. If the government truly wants to help people out of poverty, they should pour money into training poor people : help people to start their own business

Sole traders Small businesses have always been a good way out of poverty. Almost anyone can start their own business if they know how.

Start a small business and soon you might hire family members, friends, and others in the community. This is how we rise from rags to riches.

We get rid of poverty by creating more wealth. And the way to do that is to start many small businesses that can grow over time.

This is a better way forward.

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Chris, Farmer.

Reform Uk. Gloucester #ReformUK #gloucester