Both minimum wages and unions' ability to get higher wages for their members increase the rate of unemployment.

Question

Quizplus · Accepted Answer

While it's a common argument that minimum wages and unions can increase unemployment by raising the cost of labor, the actual impact on unemployment rates is complex and varies depending on the economic context, the level of the minimum wage, and the strength of the unions. In some cases, higher wages can lead to increased consumer spending, which can stimulate job growth.

Both Minimum Wages and Unions' Ability to Get Higher Wages