How Does Minimum Wage Affect Inflation

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Minimum wage increases will affect inflation. If minimum wage increases to $15.00 business owners will need to find a way to cover higher employments costs. The money has to come somewhere. The most likely way for these business to stay afloat with the wage increase is going to be increasing their prices for goods and services. Employers forced to pay employees a higher wage will result in higher prices for consumers. Another way to cut costs for business owners will be layoffs. Employers may be forced to cut part time employees and rely on a smaller staff to keep payroll costs low. Studies suggest there would be over one million job losses if minimum wage was increased to $9.50. If the wage was increased to $15.00 the amount of job losses

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