Sample Solution

Minimum wage is a contentious matter which has been debated in society for years. On the one hand proponents argue that it is necessary to ensure workers receive fair compensation for their labor and to help reduce poverty among lower-income households. On the other hand opponents are concerned about potential side effects such as job losses due to decreased profit margins or reductions in hours worked (Hatton & Thomas 2020).

Proponents would argue that increasing the minimum wage can have a positive effect on reducing poverty by providing more disposable income to those at the bottom of the economic ladder, allowing them to purchase goods and services which otherwise may not be available due to financial constraints (Dube et al 2019). Additionally this would result in increased consumer spending since these individuals tend to spend a greater percentage of their earnings versus higher earners who save more than they spend. This could help stimulate local economies while also creating additional jobs as businesses expand operations in order meet increased demand.

Opponents however, may counter that raising minimum wages will result in negative impacts such as job losses due reduced profit margins; especially within industries employing large numbers of low-wage workers whose salaries account for significant portions of overall expenses. They also fear this could lead towards employers substituting humans with automated systems thus exacerbating current employment trends already seen due technological advancements (Hatton & Thomas 2020).

In conclusion ,although an increase in minimum wage may seem like an attractive solution it must be weighed carefully against its potential short and long term consequences including possible effects on unemployment and inflationary pressures. As such, governments should consider all aspects before making any decisions regarding mandatory pay increases including consulting with both business owners and employees who will likely bear brunt of these changes (Dube et al 2019) .