Minimum Wage Rises to $7.25

Some say hike will hurt small business; others hold it'll boost economy
By Matt Cantor,  Newser User
Posted Jul 24, 2009 11:45 AM CDT
The minimum wage rises 70 cents today.   (Shutterstock)

(Newser) – The minimum wage today jumps 70 cents to $7.25 an hour, a move that rekindles a debate as old as the wage itself, notes the Atlanta Journal-Constitution. Some worry that the increase puts an unfair burden on small businesses, especially with times so tight; others say low-wage earners will quickly put the extra cash back into circulation.

Employers are “very worried about added costs and minimum wage is another layer," said one advocate for small businesses. "I don’t think you could pick a worse time to do this.” But another analyst argues that “to get out of this recession, we need more money to circulate.” The wage hike affects the 30 states whose minimum wage was either below the federal standard or didn't exist in the first place. About 4.5 million workers will see a raise.