Question

What are the consequences of a minimum wage increase? Who benefits? Who gets hurt? Is it possible that this type of legislation hurts the very people it is intended to help? Explain.

atleast 90 words

Answer 1

Answer:-

Consequences of rising minimum wages:-

If there is increase in minimum wages of labour then there is also rise in consumer spending. Low-income worker are likely to spend high percent of their extra income. And this will help in boosting the economic growth.

Who get benefit:-

The minimum wage worker get the benefit as their income are increase which also helps them to handle their cost of living. And improve their standard of living.

Who gets hurt:-

Companies are likely to hurt with rising minimum wages because this increase the operating expense of companies as they have to pay higher income and salaries to their minimum wages worker.

Yes, It is possible that this type of legislation hurt the very people it is intended to help.

Reason:-  Due to increase in operating expenses, the firm likely to increase the price of their goods and services as they seek to earn profit, which effect the poor people, for whom the minimum wages is increase.