The minimum wage, or the lowest possible rate at which a worker is paid, is a staple feature of all developed countries. A majority regard this law as an offspring of a higher sense of social duty amongst the big gamers in a nationwide economy. However, even more than simply philosophical suitables, any law or proposition must likewise be subject to examination in as far as its financial or monetary feasibility.
Globalization, the procedure by which the entire world has ended up being interconnected has actually now reached its peak. Western companies, in the face of increased competitors from the outdoors, are now finding methods to boost their global competitiveness by reducing the prime element that determines company viability – operation expenses.
Today, the international sensation of company process outsourcing has actually taken the front seat. Essentially, business agreement labor from outside their companies to do some of their business processes to cut down on capital outlay.
The contracting out phenomenon has caused countless headaches to many developed countries. In the United States for example, hundreds of thousands of customer support tasks were lost with the development of VoIP (Voice over Internet Protocol), a telephone system that makes worldwide calls expense almost the like local calls. These jobs were moved to overseas locations like Panama, India and the Philippines, as a company can simply pay a foreign representative a tenth of what they would in the house.
The situation doesn’t end there. Even writing tasks, bookkeeping, legal, and virtually everything else that does not require on-site service can be outsourced offshore. While this helps other driver, we can not reject the fact that this injures those who get left behind.
With the presence and strict execution of the minimum wage law in many countries, regional companies find it difficult to fix up business needs with government policy. A total repeal of the law will expose the average salaried worker to labor abuses that warranted the law’s existence to start with.
With this paradox, is the Minimum Wage Law in need of radical revisions?
Probably, however it would take one heck of Nobel laureate to discover the ideal answer.
For one, the idea of a minimum wage has become deeply implanted in the consciousness of the ordinary individual. However, this leads numerous multinationals to move tasks overseas searching for more affordable labor. This integral contradiction is something that we need to resolve soon or the entire economy would need to pay the repercussions