What would be the impact of raising the federal minimum wage on a firm?© BrainMass Inc. brainmass.com March 4, 2021, 11:36 pm ad1c9bdddf
What would be the impact of raising the federal minimum wage on a firm?
Raising the federal minimum wage has both positive and negative impact to firms and the economy as a whole. On one hand, raising the minimum wage could be a positive impact to the economy because the purchasing power of individuals is likely to increase. As the purchasing power increases, firms would have to up their productivity so as to meet the rising demand. On the other hand, some people think that raising the minimum wage would cause unemployment in the economy because firms may not afford to pay their employees ...
This solution highlights some of the impacts of raising the federal minimum wage on a firm.