New Jersey Hits Record $15 Minimum Wage Amid Inflation Fears
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In January, New Jersey's minimum wage will hit a record high of $15.13/hour after years of increases. Supporters say it's needed in the expensive state, but some warn it could raise prices.
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Some economists argue raising minimum wage leads to inflation through a wage-price spiral, where wages and prices outpace each other.
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The pandemic, supply chain issues, and shifting consumer spending have been primary drivers of price increases, not just wages.
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The Fed's interest rate hikes to curb inflation have led to higher unemployment, slowing the economy.
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Research shows minimum wage hikes have a small impact on prices - a 10% increase leads to 0.5% higher restaurant prices.