In the world of the market economy, there exist strategies that maintain competitive standards for growth. Firstly, the availability of many firms thriving to meet the market’s standard and goals. With such aim in the industry, the firms create a competitive environment. Secondly, the firms should be able to enter and exit the market quickly to give chance to the upcoming high standards firms. The third condition states that individual firms should produce comparable products for sale, using the same technology and input (Conditions for Perfect Competition, 2018). Competition forces each firm to maintain a similar market price for its products, ensuring no firm charges more or less without considering loss. Lastly, all the consumers and firms in the market should have knowledge about product quality, prices, and production techniques. Such knowledge is used comparably between products sales of different companies (Conditions for Perfect Competition, 2018), to determine why the same product moves at a higher rate in one firm but lower in another.
In accordance to the debate, the team against the motion has a better argument compared to the team for the motion. Jaren Banty and Caren Conblue recognize that abolishing the minimum wage will create a gap in the employment market, slowing down the economic growth. The team also note that many unskilled workers depend on the low salaries for survival and abolishing it will increase the poverty level of the country. The team for the motion; James Dona and Russel Roberts, argue, low wages allows employment of unskilled workers and also slows the job growth rate. In their argument, the team for the motion considers a society that lacks low income opportunities, to increase the rate of high wages and improve the economy.
The team against the motion argues that, it is wrong to retrieve the available opportunities to those that depend on them. Preferably, it is fair to raise the low wages above the federal standards to support those who survive on a low income. In my considerations, the team against the motion won the debate. This is because they consider the abolishment of low wage to be morally wrong, for it will deny the poor an opportunity to thrive.
Works Cited
Conditions for Perfect Competition. Cliffsnotes.Com, 2018, Retrieved from:
https://www.cliffsnotes.com/study-guides/economics/perfect-competition/conditions-for-perfect-competition.