Topic > Argumentative Essay on Minimum Wage - 1423

However, if wages rise soon, everything else will go into clothing, food, gas, rent, etc., making it difficult for some to adjust. According to Sherk, “In equilibrium the average fast-food restaurant would need to increase prices by 38%.” This would serve to offset the salaries paid to workers. David Cooper states in his article that “It would provide a modest stimulus to the entire economy, as rising wages would lead to an increase in consumer spending, which would contribute to GDP (gross domestic product) growth and a modest increase in employment". But why should people spend more if prices rise at the same time as minimum wages? On the contrary, it would be smart for people to want to save more