Effective July 24, the national minimum wage will raise 70 cents to $7.25 an hour (up from $6.55).
This is the third and final increase in the federal minimum wage in two years, mandated by Congress in 2007. Currently, 31 states have a minimum wage set below the new rate, and many are curious how this increase will affect the economic crisis. Studies show that increases in minimum wage can be associated with a slight drop in new employment, and employers are also facing a potential health care mandates.
In turn, the argument is made that more money in the hands of low-skilled or young workers means that it will most certainly be spent and not saved.
Source:
The Wall Street Journal: Winners And Losers Of The Minimum Wage Hike
