unlearn KAA NMW Flashcards
Wages will be stuck at the national minus wage causing
demand for labour contract and the supply for labor to extend.
Prevents monospont explonation,
Prevents monospont explonation, higher national minimum wage prevents monopsonies from exploding workers with low wages so incomes for employed workers will increase
More income for workers
More income for workers so workers can spend more on goods and services and improve their standard of living enjoying a more nutrient rich diet or leisure actives reducing poverty
External beenfust to government
External beenfust to government this has external benefits because the government will be able to cite its benefits spending and earn more in income tax revenue from higher paid workers helping reduce its deficit
Increased government spending
Increased government spending the government could then use its extra revue to invest in new education and training programmes helping more workers increase their wages and skills and earning firms higher profits
Boosts prodvitity higher wages
Boosts prodvitity higher wages mean workers will have to be more productive otherwise they risk being replaced by now less expensive cpaiytl this boosts productivity
Lower costs:
Lower costs: higher productivity increases output reduces unit cots for a firm increasing their profits and allowing them to invest in new machinery increasing dynamic efficiency
Incentive to train workers
Incentive to train workers also if firms have to pay workers more they have incentive to invest in their training so this will promote training in new skills increase job prospects for workers in the long run
Consumer multiplier
Consumer multiplier effect with their higher disposable incomes they will increase spending which will in turn increase demand for local firms who will experience higher revenue and supernormal profits, and can use their supernormal profit to invest in human capital improving future wages this will confute via the multiplier effect
