After years of no change, a few years ago, we had a three phased increase in minimum wage. Now we are discussing raising it further, to $10.10 an hour Are people that work for minimum wage better off after an increase in minimum wage? Why or why not? Think about this from the perspective of the business. What will a business do if it is faced with an increase in labor cost?
How will this impact people that previously earned $11.00 an hour? Will they get an increase as well?
Before the last increase, the unemployment rate was 4.7%; after the increase, the unemployment rate rose to 10% and although declining now, is still over 6%. Could there be a relationship between the increase in minimum wage and the unemployment rate?