Do you agree or disagree that the U. S. should raise the minimum wage? How could this affect different levels of the economy?

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Social Studies

Luka Waller

9 September, 02:55

Do you agree or disagree that the U. S. should raise the minimum wage? How could this affect different levels of the economy?

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Santos Gray · Answer 1

After think a lot about this issue, the rise of the minimum wage has a main disadvantage: Any increase in people's consumption capacity results in a higher level of spending and that generates pressure in the supply of products of the economy. If the authorities could not control it, this could be reflected in a higher price level and, depending on the inflation generated, the effect of the increase in salary would be literally liquefied: in an inflationary scenario, which is affected it is the ability of people to buy.