Increasing minimum wage equals higher incomes for min. wage workers. This is a good thing right?
Well, what if that increase means that businesses will make less profits while making the same amount of product? Businesses will not allow their profits to go down, so they will increase the cost of their products. This means that your dollar will no longer buy the same amount of product. This is called inflation. So, about 2-3 years after the minimum wage increase is passed - your increase in pay will buy the same amount of product that it bought before the increase, and the dollar will be worth even less than it is now.
2006-07-31
17:26:49
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25 answers
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asked by
Christopher B
6
in
Politics