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Are Minimum Wages Fair?

Business

In response to a budget shortfall, the mayor of Scranton, Pennsylvania cut the pay for some 400 city employees to the federal minimum wage, promising to restore their pay once city finances have stabilized. Unions representing police, firemen, garbage collectors — among others — have filed a lawsuit in response.

The situation in Scranton has thrown gas on the slow-burning fire over the minimum wage. What are the effects of minimum wages? Are minimum wages fair?

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