Thursday, July 31, 2008

Arguments against a Minimum Wage Policy

The following arguments have been advanced against a "minimum wage policy" in Singapore:

1. Our business will be uncompetitive and will move to other countries
2. This policy is difficult to enforce, specially for small businesses
3. Our locals will be costly and lose jobs to foreign workers in Singapore
4. This policy is against free market principles.
5. The low wage workers are entitled to Workfare supplements
6. It will increase unemployment

Do you agree with these arguments? Are there reasons to support a minimum wage policy?

6 comments:

siewkhim said...

Dear Kin Lian,

It is not a matter of whether we agree with these arguements. If those powerful people who earned by the millions insist that the way to go, our disagreement have no place in their agenda.

So it is not about truth and doing the right thing. But it is about who is POWERFUL and who call the shots. Let's be realistic.

Larry Haverkamp said...

While it is true that a higher minimum wage will reduce employment, the question is, "How much?"

Studies in the US show it is not much.

Also, to keep Singapore competitive, some groups could be exempted, like foreign workers.

This is done in other countries.

In the US, farm workers are exempt from minimum wage laws.

In a way, it would be desirable to include all workers -- (but it may be a necessary compromise to exclude certain groups).

Sincerely,

Larry Haverkamp

David said...

We have no minimum wage all this while yet there is peace (no protest, no strikes, no riots,etc) so it means things are OK or even "Golden Period" according to our LKY. What's more, the electorate supported with 66% mandate and 50% walkovers (due to no enough credible opposition)at every election. Next election will most probably be the same based on the trend and happenings. So PAP can continue to do what they think is "best" - no minimum wage, more foreign talent etc.

sarpork said...

Elites pay rise by millions will reduce corruption,
Peasants pay rise few hundred cause inflation

- Lordzephyr9 (Hardwarezone)

C H Yak said...

I disagree. Even China practises Minimum Wage Policy.

I think it encourages employment because at the lower end of the spectrum, workers are encouraged to work for a fairly determined minimum wage which is decent for our standard of living.

At the higher end of the spectrum, we can also attract good Ministers.

So, why not?

Tan Kin Lian said...

Even America, which strongly believes in the free market, has a minimum wage policy.

They have recently increased their minimum wage to the equivalent of SGD 9 per hour. It will be increased to SGD 10 per hour in the final phase of the adjustment.

If Singapore introduces a similar minimum wage, a worker can earn SGD 1,600 a month.

The csot of living in Singapore is as high as America.

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