Understanding Minimum Income Support through Minimum Wage


Recently, one of the most important forms of social assistance is the minimum income support (MIS). MIS as a part of citizenship income is a regular cash transfer program. One of the corner critiques made against MIS is whether or not it is a program that promotes employment, and this criticism is closely connected to the “amount” of MIS provided. If the amount provided is close to workers in any job, then a loss of interest in working may be observed in both those of benefiting from MIS and in workers. One of the criteria helping to determine the amount of MIS to be provided is minimum wage (MW). The amount of MIS provided is usually one-third of MW; an amount that should provide a decent standard of living to the recipients of MIS. One of the ways to realize this is by raising raising MW. However, any attempt to raise MW will be faced with a “cost” barrier. Nevertheless, there are two “intellectual grounds” for overcoming the cost barrier: (1) the principle of the “social (welfare) state” and (2) the “social responsibility” applications of business. Respecting these two intellectual grounds, this article argues that MIS can satisfy a decent standard of living by rising MW. In order to fulfill the requirements of a true social (welfare) state, cost accounting should be replaced with accounting for a reasonable standard of live. Moreover, social responsibility for the business is to take risk expenditures (costs) that increase the amount of MW to a decent level rather than simply spending for the society in a general sense and for the needy in specific.


minimum income support minimum wage ethics social assistance citizenship income