Final answer:
The answer to the question about minimum wage increases is true. States and cities across the U.S. have implemented or started phasing in increased minimum wage rates, some targeting $15 per hour, which has sparked debates over the economic impact this may have.
Step-by-step explanation:
The statement that minimum wages have increased in many states over the past few years is true. Several states such as New Jersey, Illinois, Maryland, Massachusetts, and New York have begun the process of phasing in $15 minimum wages. Additionally, cities like Minneapolis, Minnesota, and Seattle, Washington have also adopted this higher wage standard. While minimum wage laws have historically had a minor impact on employment due to being set close to the equilibrium wage for low-skill labor, a significant increase could lead to larger economic effects, including changes in the demand for labor.
Arguments for and against raising the minimum wage revolve around the potential impact on employment, the buying power of workers, and the possible resulting increase in the prices of goods and services. Supporters argue that higher wages increase worker purchasing power, which can stimulate the economy. Critics, however, fear increasing the minimum wage may lead to higher unemployment rates and price inflation. As policies continue to change, the effects of higher minimum wages will become clearer over time.