What are the impacts of raising the minimum wage?

What are the impacts of raising the minimum wage?

Raising the minimum wage can lead to increased income for 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, higher wages can boost consumer spending, which may stimulate economic growth and increase demand for goods and services.

What about the impact on poverty levels?

Raising the minimum wage can help lift some workers out of poverty, but its overall effect on poverty levels can vary based on other economic factors.

Can you provide examples from different countries?

Sure! Countries like Australia and Germany have seen mixed results from minimum wage increases, with some positive impacts on living standards.