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Global Demand for Bicycle Helmets


Discuss whether a rise in the wages paid to low-paid workers would benefit an economy.


Labor Market and Income Distribution

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I. 🍃Introduction
- Brief explanation of the topic

II. Reasons why minimum wage might reduce poverty/increase living standards
- Giving access to basic necessities
- Making income more evenly distributed
- Enabling the poor to spend more on education of their children

III. Reasons why minimum wage might increase motivation of low-paid workers
- Raising productivity
- Increasing output/raising GDP/cause economic growth
- Increasing quality of output
- Reducing costs of production

IV. Reasons why minimum wage might increase total demand
- Raising employment
- Greater tax revenue
- Enabling government to spend more on education/health care
- Greater literacy/longer life expectancy

V. Reasons why minimum wage might not be beneficial
- May increase costs of production
- May cause cost-push inflation
- Firms may make workers redundant/increase unemployment
- May cause demand-pull inflation
- Low-paid workers may spend more on demerit goods/reduce health
- Higher costs may make the country's products less internationally competitive/worsen the current account position

VI. 👉Conclusion
- Summary of the main points
- Personal opinion on the topic

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