THW ban the minimum wage

Problem: Most of the countries have a minimum wage of some sort. Yet the statistics are vague because the conditions of receiving it vary a lot in different countries. There are also developed countries, such as Germany, Qatar, Italy and Singapore that do not have any minimum wage set by the law.

There are two main issues having a minimum wage set by law creates:
1) As a result of the recession, the average unemployment rate remains high throughout the whole world. E.g. in the EU the average unemployment rate currently is around 9.6% The minimum wage prevents companies from recruiting more employees (under 1. argument) than they would without it. Therefore the quantity of workers becomes less relevant and less people can enter the job market.

2) Minimum wages create polarisation. It favours big companies, raises prices, lets only the most qualified workers enter the job market. Therefore, only a small amount of people take advantage of the welfare. E.g. the poorest 40 percent of the world’s population accounts for 5 percent of global income. More than 80 percent of the world’s population lives in countries where income differentials are widening. The richest 20 percent accounts for three-quarters of world income. (Source: http://www.globalissues.org/article/26/poverty-facts-and-stats )

Having minimum wage has failed it’s purpose of tackling these issues efficiently, since it only improves the conditions of people who have a regular job / income. Those who remain unemployed harm the societies by committing crimes, not contributing tax money etc (2. argument).

Proposition Team-line: Minimum wage may benefit only some of the poor households whereas at the same time it makes it harder for unemployed people to enter the market.

Plan: the states should abolish all laws that set a minimum wage. As a result, companies and workers would establish the minimum cost of labour force themselves, without state’s intervention.

Outline: There are 3 reasons why do it. The first speaker could bring the 2 first ones to the table, the second speaker could extend the case with the third argument.

Opposition Team-line: It is the obligation of every effective state to ensure workers would not sell their labour too cheap. This is in the best interest of the worker and the employer as well.

Outline: the first speaker would bring in both arguments and the second speaker can extend them.