Minimum wage policies are one of the most debated topics in economics. While increasing the minimum wage can help low-income workers afford basic necessities, it may also create challenges for businesses and lead to unintended consequences such as higher prices, job losses, or reduced hiring opportunities. This project challenges students to analyze who benefits and who suffers when governments raise the minimum wage by examining economic trade-offs and real-world examples.

Students will research the effects of minimum wage policies on different stakeholders, including workers, businesses, consumers, and the broader economy. They should explore arguments in favor of raising the minimum wage, such as reducing income inequality and increasing consumer spending, as well as arguments against it, such as potential job losses, higher business costs, and automation replacing low-wage workers.

A key part of this analysis will involve looking at real-world examples, such as U.S. cities and states that have recently raised their minimum wage or international comparisons in countries where minimum wage policies have significantly impacted employment and business operations. Students should investigate whether increasing the minimum wage leads to job growth or job losses and whether businesses pass higher labor costs onto consumers through price increases.

The final short report will summarize the economic trade-offs of minimum wage policies, providing evidence-based arguments on both sides. Students will also discuss alternative solutions for helping low-wage workers without potentially harming businesses, such as tax credits, skill training programs, or wage subsidies. The goal of this project is to help students understand how government intervention in labor markets affects different economic players and whether the benefits of raising wages outweigh the costs.