Higher minimum wage would benefit the economy

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It is generally accepted among economists that minimum wage warps the equilibrium point between the supply and demand of labor by instituting a price floor and increases unemployment for unskilled laborers (while increasing the wage for the individuals who continue to work).

However, I have noticed that politicians continue to advocate an increase in the minimum wage. Politics and political manoeuvring aside, is there an economic reason as to why a higher minimum wage would benefit the economy?

Reference no: EM13838612

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