Raising the minimum wage is not an effective way to eliminate poverty because increases in the minimum wage:
A) do not increase incomes.
B) create incentives for workers to exit the labor force.
C) create higher unemployment.
D) tend to simply increase birth rates among low-income households.

Question

Quizplus · Accepted Answer

While raising the minimum wage may provide a short-term boost to low-wage workers, it can lead to higher unemployment as employers may be forced to reduce their workforce or cut hours to offset the increased labor cost. This can also lead to inflation and higher prices for consumers. Additionally, raising the minimum wage may not necessarily address the root causes of poverty, such as lack of access to education and affordable healthcare.

Raising the Minimum Wage Is Not an Effective Way to Eliminate