Higher minimum wages would obviously be good for individual low-wage workers, but what about the broader economy?

A:

A higher minimum wage can actually be good for individual businesses and the broader economy. Higher wages reduce turnover which increases productivity – both of which can reduce costs and increase profits for businesses. At the same time, higher wages help boost the purchasing power of low-wage workers, who are much more likely to spend all of their money locally than wealthy people. This is why many economists and groups like the International Monetary Fund (IMF) have concluded that increased minimum wages are actually more likely to boost economic growth than reduce it.