Analysis of an Article in a Microeconomics Viewpoint Essay

Analysis of an Article in a Microeconomics Viewpoint - Essay Example In the end of business organizations however, the increase will mean additional costs by business organizations. If this happens, this will be detrimental to the company and they will tend to compensate by cutting number of workers in order to maintain their original costs. Another issue is the economic viewpoint which is used in legislation. In the real world situation, changes in the economic policies should always be approved by government officials. As politicians have different viewpoints, it is often hard to pass bills and laws which will bring about drastic changes. The issue on minimum wage is always debated in all economies globally and not just in the United States. As the writer puts in the article, there are two sides of the coin which should be taken into consideration before the minimum wage could be raised. Through our class discussions, I have learned that minimum wage should be a matter of supply and demand. It is the least acceptable payment that an employee can accept while it is the highest which can be charged for a firm. For an employee, minimum wage should be able to cover up for the estimated productivity of the worker as well as the opportunity cost of his time. On the other hand, a company should make sure that the employee's output is worth his hourly payment.