Debate On Minimum Wage Law

293 Words2 Pages
Good morning adjudicators, opponents and my fellow schoolmates, [rebuttal] Minimum Wage Law will definitely brings economic benefits to Hong Kong. 1. Stimulate Consumption, employment First, setting up Minimum Wage Law can stimulate consumption of Hong Kong citizens. One of the key drawbacks of the conventional approach is that it views the wage almost purely as a cost. It is true that wages are a cost, but they also are an income. Minimum Wage Law can increase wages that rise aggregate income. If income rises, spending will increase, demand on products will increase. Higher production will require more labour, and thus employment can also rise. In UK after minimum wage was set up, the unemployment rate even keep on falling from 6.2%in 1998 to 5% in 2001. Prove that minimum wage will not cause unemployment Increase productivity Secondly, Higher capacity utilization can translate into higher productivity. According to Frederick Herzberg's two-factor theory, moderate wages can be served as motivating factors which can reduce workers' discontent,increase morale and participation rate. Hence, overall productivity will increase, higher output will bring advantage to the Hong Kong economy. Lower Govt spending Thirdly, Minimum wage law can lower Govt expenditure on various subsidy schemes and anti- poverty programs. More wages enable citizens to earn enough for their living. The money resources can then reallocate onto some infrastructures and investments which will benefit Hong Kong economy in a long term manner. What the Hong Kong Government always mentions is sustainable development. With the Minimum Wage Law, we will have a higher money circulation which will make our economy stronger, more business opportunities and strengthen the society as a whole. Therefore, today's motion '' Minimum Wage Law do more harms than

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