The money to pay for an increased minimum wage can only come from four places:

  1. other minimum wage workers, in the form of layoffs and reduced hours;
  2. higher wage workers, in the form of static or reduced compensation;
  3. investors, in the form of lower profits; or
  4. customers, in the form of higher prices.

Most often it comes from other minimum wage workers.

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Digging Deeper

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