Minimum-wage increase, economics homework help
Please respond to the answer by giving some feedback and analysis in 1.5 to 2 paragraphs.
Go to the internet and find a news article that discusses the effects of a minimum-wage increase on the U.S. economy, summarize key points.
According to CBS News, in April 2016, two states, California and New York, approved to have their minimum wage increase to $15/hr by 2022. Small business owners believe this increase will have negative effects on the economy. They believe it will lead to layoffs, price hikes, and some business will have to close permanently. However, a 1995 study conducted by two economists showed that when New Jersey and Pennsylvania increased the minimum wage from $4.25 to $5.05 there was no indication that the rise reduced employment. Additionally, when the minimum wage is increased even though fewer workers are hired, fewer leave the job, reducing the need to recruit and train workers.
Gibson, K. (2016). Will Raising the Minimum Wage to $15 an hour Kill Jobs? CBS NEWS: MARKETWATCH. (April 1, 2016). Retrieved from: http://www.cbsnews.com/news/will-raising-minimum-wage-to-15-an-hour-kill-jobs/
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