70 Cent Raise Helps Workers, But May Hurt Businesses

by Jen Nedeau · 2009-07-29 06:00:00 UTC
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Despite the economic crisis, the Federal Minimum Wage increased from $6.55 an hour to $7.25 an hour this past Friday. The raise, which will result in a $2000 annual pay increase, will affect about 10 million workers, or nearly 11 percent of the U.S. workforce according to Work Place Fairness. This hourly wage results in a yearly income of $15, 080 - a five thousand dollar difference from the U.S. poverty line of $10,830.

It is reported by NPR's David Greene that two-thirds of minimum wage workers are women. This wage increase will push single mothers just over the poverty line - assuming they don't have a child working with them - as a two-person household making less than $14,570 is considered to be in poverty. If they have more than one child, however, this new wage will not be sufficient.

However, the wage increase could also backfire on those who see it as a key to help struggling Americans. Since the wage increase was part of legislation passed by Congress in 2007 - before the crash of the U.S. economy - it is now being debated about whether it will kill jobs or boost consumer spending.

What do you think?

Jen Nedeau Jen Nedeau is a media relations professional and a writer based in New York City.
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