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This is what happens after increasing minimum wage- Raising the minimum wage always means higher labor costs. Higher labor costs always mean higher product prices.

This is what happens after increasing minimum wage-

  • Raising the minimum wage always means higher labor costs.
  • Higher labor costs always mean higher product prices.
  • Higher product prices always mean lower product sales.
  • Lower sales always mean fewer employees.
  • Therefore, a higher minimum wage always reduces employment.

Why is above mentioned logic incorrect?

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