minimum wage

is a thing instituted with the macroeconomic objective that it could be used to affect the entire wage distribution, which may lead to economic growth, inflation control, or political gains, to name a few.

Macroeconomic objectives. The minimum wage can also be used to affect the entire wage distribution, which may lead to economic growth, inflation control, or political gains, to name a few. (Starr 1993) [in Minimum Wages and Social Policy: Lessons from Developing Countries By Wendy V. Cunningham p.9

 was originally deemed necessary because it had been shown that low wages impose substantial negative externalities on society, and that government has a responsibility to correct the market and serve as a collective bargaining proxy for poor workers without representation to ensure them a standard of living acceptable to society.

The original proponents of the minimum wage argued that low wages impose substantial negative externalities on society, and that government has a responsibility to correct the market and serve as a collective bargaining proxy for poor workers without representation to ensure them a standard of living acceptable to society.

 was originally instituted as protection of the most vulnerable with the least bargaining power and the most inhumane living standards.

Protection of the most vulnerable. This was the early objective of the minimum wage, where those with the least bargaining power and the most inhumane living standards were the target of the policy.

Wendy Cunningham

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