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What are the positive and negative effects of increasing the minimum wage?
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Positive Effects: Increasing the minimum wage would help workers increase their earning potential by providing them with more money to cover their basic needs. It could also lead to a decrease in income inequality, as workers would receive a more equitable share of the wealth generated by businesses. This could also have a ripple effect and stimulate the local economy, as workers would be able to contribute more to the GDP.Negative Effects: Increasing the minimum wage could cause businesses to raise their prices to offset the additional costs. This could lead to an increase in inflation and reduced purchasing power. In addition, employers could shift to increasing automation as a way to cope with the new wage requirements, resulting in a loss of jobs for low-wage workers. These workers could then find themselves in a worse position than before, due to higher prices and fewer job opportunities.