Stimulus in federal wage hike

Bemidji Pioneer (MN), Jul 24 2009
An economic stimulus of a different sort takes effect today, as the federal minimum wage rises from $6.55 an hour to $7.25 an hour. The move will create an extra $5.5 billion in consumer spending over the next year, Obama administration officials say.

Congress for decades has argued over the merits of raising the minimum wage, proponents calling the move necessary to more closer reach a living wage, and opponents saying the hike will cause the loss of jobs especially in small businesses unable to afford the higher wages.

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