To offset higher labor costs, businesses might increase the prices of their goods and services. This could lead to inflationary pressures, affecting not only the cost of living but potentially negating the benefits of wage increases for workers.

  • Voting position claim
  • Claim

Name

To offset higher labor costs, businesses might increase the prices of their goods and services. This could lead to inflationary pressures, affecting not only the cost of living but potentially negating the benefits of wage increases for workers.

Types

Voting position claim
Claim

Opposed voting positions

We should consider raising the minimum wage
Raise the minimum wage to $17
Raise the minimum wage to $15

Opposing arguments

Empirical evidence, including a study from the University of Washington, suggests that increases in the minimum wage do not significantly affect the prices of food and consumer goods, contradicting claims that costs would skyrocket

Quotes that support the claim

"Neoclassical economic theory predicts that higher minimum wages will lead to lower employment. This may happen for two reasons: firstly, because minimum wages may force enterprises to raise the prices of their goods and services, and consumers or international buyers who face higher prices may therefore cut back on their demand (the so-called 'scale effect')."

Voting issues

Minimum Wage