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In the United States, the federal minimum wage sparks debate. Critics claim that the minimum wage creates unemployment through an unnatural price floor. Supporters say that a minimum wage is needed to help low-wage workers. Document B. "In the House debate last week, opponent s again claimed that the small business community is vehemently opposed to an increase. They think small businesses will suffer or collapse even with our modest increase. That's preposterous. A recent Gallup poll found that 86% of small business owners don't think that the minimum wage affects their business-at all. In fact, small businesses have historically prospered after past increases. More than half the states have already acted to increase minimum wages above the federal level today, and these states are generating more small businesses than states with a minimum wage of $5.15 an hour." According to Document B, how does raising the minimum wage affect small businesses? A. It forces small businesses to lay off workers. B. Small businesses prospered after previous minimum wage increases. C. Small businesses strongly oppose an increase. D. Without a minimum wage increase, small businesses will collapse.
Solution
VerifiedAccording to Document B, raising the minimum wage affect small businesses:
- Small businesses prospered after previous minimum wage increases.
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