Give a brief summary of each and explain why they are the mostimportant

Benefit 3 A higher minimum wage could reduce government welfarespending. If low-income workers earned more money, their dependenceon, and eligibility for, government benefits would decrease. TheCenter for American Progress reported in 2014 that raising thefederal minimum wage by 6% to $10.10 would reduce spending on theSupplemental Nutrition Assistance Program (SNAP, formerly known asfood stamps) by 6% or $4.6 billion. [9] The Economic PolicyInstitute determined that by increasing the minimum wage to $10.10,more than 1.7 million Americans would no longer be dependent ongovernment assistance programs. They report the increase wouldshave $7.6 billion off annual

Cost 3 Raising the minimum wage would increase the price ofconsumer goods. A 2013 article by the Federal Reserve Bank ofChicago stated that if the minimum wage is increased, fast-foodrestaurants would pass on almost 100% of their increased laborcosts on to consumers and that other firms may do the same. [2] A2015 University study found that raising the wage offast food restaurant employees to $15 or $22 per hour would resultin a price increase of 4.3% and 25% respectively, or a reduction inproduct size between 12% and 70%: "a hamburger would be muchsmaller," the researchers stated. [53] NBC News found that theprice of a cup of coffee went up by 10 to 20% in Oakland,California, after a 36% minimum wage hike in the city to governmentspending on incomesupport programs. $12.25. The report also found a6.7% rise in coffee prices in Chicago after the minimum wage roseto $10. [54] The Alberta Hotel and Lodging Association (Canada)found that a "sudden and significant increase to the minimum wage"would result in "[i]ncreased prices for food & beverage, guestrooms and meeting facilities." [55]

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1 The most important reason why raising the minimum wage could reduce government welfare spe... View the full answer