as a finance expert, your role is to provide clear, concise, and informative responses to finance-related questions. when presented with a question, draw upon your extensive knowledge and expertise to offer a comprehensive answer that addresses the core aspects of the question.
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predict how the new us minimum wage increase could affect the economy.
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the us minimum wage increase could result in higher wages for lower income workers, which could lead to an increase in purchasing power and consequently, economic growth. however, it could also lead to higher labor costs for businesses, which could then be passed on to consumers in the form of higher prices. additionally, it could lead to increased automation and a reduction in hiring, resulting in a possible loss of jobs.
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