How much will prices go up with the rise in Minimum wage?

Answer 1

Not much

Answer 2

No much. Very few people actually make the minimum wage and most make well over even the new higher minimum wage. So the real question is why raise it at all if its not really going to help anyone. My guess is so politicians can pretend they are actually giving someone a raise that wouldn't have gotten it otherwise.

While at the same time, who will know the people that won't get jobs because of the minimum wage. Because any moron can figure out that the real minimum wage is zero. That's what you make if your unemployed.

Answer 3

In tandem with the rise in minimum wage. There is a delay but eventually the market will re adjust so that wages are at the market equilibrium. And if raising prices does that, then that's what happens.

Answer 4

This is a very difficult question to answer.

I think about this a lot (professionally acutally) and my guess is that prices will go up in hotels, resteraunts and resorts. These establishments depend on minumum wage workers and cannot easily provide the same level of service with less staff.

Either prices will go up or service quality will go down.

The rest of the economy will "likely" see little price impact. The primary negative impact is that companies will be more reluctant to hire young or inexperienced workers. This will make it harder to break into the labor market.

See Western Europe for an example of how rough this phenomenon can become.

Answer 5

Enough to offset any actual wage increase. Minimum wage is actuallly a minimum wage.