The Impact Of National Minimum Wage On South Africa s...

The impact national minimum wage would have on South Africa’s income inequality should it be implemented. South Africa is still considered one of the countries which still consist of high income inequality. Economists argue that inequality is the most unavoidable part of the economic development and that it continues to increase in developing countries due to economic growth (Keeton, 2014). Inequality is a problem in countries such as South Africa, because it shifts the attention from bigger and difficult economic questions to it being seen as the source of poverty and the lack of jobs rather than bad policies and political failure. The national minimum wage is defined as the minimum pay per hour of labour which almost each and every worker is entitled to despite how small the employer may be. It helps create a basic floor, below which no-one may fall, despite the region or sector that one is in. South Africa is looking to introduce the abovementioned minimum wage in order to help reduce the level of inequality in the country. President Jacob Zuma has stated that the possibility of this minimum wage being one of the most important mechanisms in reducing the income inequality will be investigated. The investigation is said to focus on different possible models, such as one that includes the different pay structures for various sectors, looking at the nature of the work done (Southafrica.info, 2014). Economists argue that although the national minimum wage is seen as a wayShow MoreRelatedEssay on African Americans in the Great Depression1210 Words   |  5 Pagesworst financial crisis to ever hit America. Unemployment rates of over 25%. A 50% decrease in national income. Billions of dollars lost in a single day. (Trotter, pg.8) The Depression affected everyone in America. Young and old, rich and poor, black and white, none were spared. 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