AdvertisementA higher minimum wage almost always causes a price hike in the long run. In other words, the increase in the minimum wage causes prices to tick in the long run, only for the left to then promise an even higher minimum wage, which feeds into the problem even more. The self-reinforcing cycle, also referred by economists as the “minimum wage trap,” does not improve affordability. AdvertisementLastly, the increased unemployment due to the higher minimum wages would expand poverty while contributing to rising income and wealth inequality. Until that happens, minimum wage increases will continue to hide their true cost: higher prices, inflation, poverty, unemployment, and inequality.