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If the government raises the minimum wage to $20 an hour, how will is affect employers,...

If the government raises the minimum wage to $20 an hour, how will is affect employers, employees, consumer and the overall economy? In answering this question please Google and view the Youtube Video with the caption, Labor Markets & Minimum Wage: Crash Course for insights.

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Employers will loose so they will reduce employment to keep profits intact. Consumers will loose because they have to pay higher prices for goods produced by labour. But since they are laborers also net affect will depend on whether price rise is greater or less than wages. If prices rise more they will loose definitely. As far as economy is concerned it reduce employment and output. Employers may substitute labour with capital. In this case output will not fall but unemployment will rise. Thus there are many negative effects.

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