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As far as minimum wage goes, aren't some small businesses exempt from having to pay minimum wage, depending on how much they make or size or something? One of my summer jobs back in high school was at the hometown grocery store (employed 5 people) and they didn't pay me federal minimum wage.
And as far as cost of items goes, I'm no expert, but my guess would be that some of the reason that items might be going up in the stores could be in part, due to gas prices. A majority of your goods arrive via semi, and diesel has gone up in price over the past couple of years which has causes shipping prices to go up. Maybe I'm completely off target, but I'm going to bet that the cost for that is getting passed on to the consumer.
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