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Providers of products and services will raise prices to offset their increased labor cost. Price increases will vary based on their salary pay outs as a percentage of their total overhead. In any event, the increase will be passed on to consumers in areas where they are already burdened with higher taxes, fees and healthcare premiums. On the other hand, wage increases will contribute to an increase in consumer spending, which normally helps economies, however, any increase will be offset by decreases in spending by consumers burdened with higher living costs.
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