From Forbes:
While economists and policy makers on the left and the right continue to disagree about the impact of a higher minimum wage on jobs and the economy, eight states will be putting into effect minimum wage hikes as of January 1, boosting the incomes of some 1.4 million low-wage workers in Arizona, Colorado, Florida, Montana, Ohio, Oregon, Vermont and Washington.... On the left, supporters of a higher minimum wage believe that more money in workers' pockets means more consumer spending and a boost in demand. On the right, critics point to studies showing that a hike in minimum wage can hurt GDP growth and reduce job opportunities for the least skilled workers. There is plenty of data supporting both positions, which makes it tough to judge which side has the upper hand.... Meantime, a comprehensive two-decade literature review by a University of California at Irvine economist and a member of the Federal Reserve Board, published in 2007, showed that a hike in minimum wage hurt the job chances of low-wage workers.

For the full story, please visit http://www.forbes.com/sites/susanadams/2011/12/22/minimum-wage-is-about-....

 

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