INTERGOVERNMENTAL RELATIONS PERSPECTIVE
Chernoh Barrie
Professor Rule
11/30/21
Introduction
Intergovernmental relationships are affected by different aspects. The governments make the policies, and they have to implement them in their countries, but some policies are implemented globally. Such policies strengthen the relationship among the governments, and it has been seen that their main goal is to work for the betterment of people. The discussion is about the minimum wage policy that is implemented in all the countries. The government fixes the minimum wage rate, and no one can hire employees at a rate less than the fixed amount. More than 90% of all countries have some kind of minimum wage policy.
Minimum Wage Policy
The minimum wage policy is the set amount of money or the legally imposed price floor on the hourly wages. The minimum amount below which the owners or employers cannot offer the employees is known as the price floor. According to the rules of 2021, the minimum wage rate is 7.25 USD per hour. The policy has been introduced to ensure that the workers are getting the minimum pay rate. The pay rate for the different regions and governments is different depending on the type of work, but below the minimum wage rate is not allowed in any way (Monteiro, 2019).
Background
The topic’s background originates from the list of 30 sustainable development goals to be achieved by 2030. Goal 8 says that there should be sustained and inclusive workflow and decent employment for all. Goal 10 says that the countries should make efforts to reduce inequality. Both the goals have pointed out that the countries need to reduce poverty and increase employment opportunities. Employment opportunities should also be monitored, and everyone should have the work to do (Bergquist, 2020). The ratio of unemployment needs to be decreased. Both the goals have stressed that the governments should work for the bottom 40 percent population suffering from inequality and lack of employment. It has been seen that the governments will have the good relations of the disparity will be reduced.
Moreover, the governments must increase the employment opportunities if GDP has to be increased. The issues are the increased unemployment and the inequality based on discrimination and so-called standards. So, the governments have fixed the minimum wage rate that is the same for everyone. No worker can accept the work for less than the fixed amount (Kaufman, 2020).
Challenges
There are different challenges in implementing the minimum wage policy. The governments have made the policy, but it has never monitored whether it is implemented in the regions or needs improvement. The discrimination based on racism and gender reveals that the implementation of policy is complicated. The minimum wage policies also interfere with the labor market allocative functions, which would cause an inefficient allocation of workers to jobs. Minimum wage can thus cause inefficient rationing. Another challenge of minimum wage policies is the failure to offer other job benefits, personal growth opportunities and disrupt economic systems (Brummund & Strain, 2020). Policymakers and stakeholders on minimum wage policies also face challenges on the kind of jobs to implement the minimum wages on and the factors to consider when implementing the minimum wage policies. This is because, with minimum wage, more people become unemployed while films become uncompetitive. In the United States, the minimum wage branch gets controlled by Congress. The federal government has set the minimum wage at $7.25 since July of 2009. However many states are now functioning at a higher wage.
Solutions
When setting the minimum wage level, policymakers should consider economic factors. When the minimum wage is very high, it may affect the cost of labor that employers pay, thus triggering price inflation and reducing employment levels. When the wages are again too low, they may cause poverty levels. Therefore, to avoid this, policymakers must consider productivity, high level of employment, investment price, etc. There should also consider the proportion of workers by the introduction of the minimum wage policy.
Conclusion
The minimum wage policy protects workers against unduly low pay and ensures an equitable and just share for all workers. Besides, the policies ensure that all workers are treated equally in different films. The various challenges associated with minimum wage policies can be solved by setting minimum wage considering the economic factor and employment levels. Minimum wage policies should offer more benefits than challenges meaning that the policymakers and stakeholders have much to do before setting the minimum wage policy. The federal government, the primary policymaker in the United States, should consider increasing the current minimum wage policies as the economy continues to change.
References
Bergquist, P., Mildenberger, M., & Stokes, L. C. (2020). Combining climate, economic, and social policy builds public support for climate action in the US. Environmental Research Letters, 15(5), 054019.
Brummund, P., & Strain, M. R. (2020). Does Employment Respond Differently to Minimum Wage Increases in the Presence of Inflation Indexing?. Journal of Human Resources, 55(3), 999-1024.
Kaufman, J. A., Salas-Hernández, L. K., Komro, K. A., & Livingston, M. D. (2020). Effects of increased minimum wages by unemployment rate on suicide in the USA. J Epidemiol Community Health, 74(3), 219-224.
Monteiro, N. B. R., da Silva, E. A., & Neto, J. M. M. (2019). Sustainable development goals in mining. Journal of Cleaner Production, 228, 509-520.
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