There has been much discussion about raising the minimum wage, with proponents claiming it will improve the lives of the working poor and reduce “inequality” and opponents claiming it will reduce employment, making the poor worse off.
Classical economic theory claims that raising the minimum wage (or instituting it where there is none) will lower employment.
Closer examination suggests that a higher minimum wage will lead to increased inflation, some job losses, increased economic growth and reduced inequality. Continue reading “Can Raising the Minimum Wage Boost the Economy?”