What are the effects of raising the minimum wage?

What are the effects of raising the minimum wage?

Raising the minimum wage can lead to increased earnings for low-income workers, but it may also result in higher prices and potential job losses.

How does it affect small businesses?

Small businesses may struggle with higher labor costs, which could lead to reduced hiring or even layoffs in some cases.

Are there any positive effects on the economy?

Yes, increased wages can boost consumer spending, which may stimulate economic growth and create more jobs.

What do studies say about the long-term impact?

Studies show mixed results; some indicate positive long-term effects on employment and productivity, while others highlight potential downsides.

Can you provide examples of cities that raised the minimum wage?

Sure! Cities like Seattle and San Francisco have implemented minimum wage increases, and studies have shown varying impacts on their economies.