The federal minimum wage increases from $6.55 to $7.25 an hour today. Wisconsin is among 23 states that also are increasing the minimum wage for employers subject to state wage and hour laws.
In Wisconsin, the rate increases from $6.50 to $7.25 an hour today for adult, non-agricultural workers, and from $5.90 to $7.25 for minor, non-agricultural workers. The state's last minimum wage increase was three years ago.
Particularly during a difficult recession, a minimum wage increase can be tough for businesses large and small to manage. Some will be forced to cut hours and positions to keep from increasing the payroll.
But the statistical link between minimum wage increases and overall job losses simply doesn't exist. In fact, most data suggests that minimum wage raises actually create job growth. In Wisconsin, according to the Center on Wisconsin Strategy, there was a job growth of 1.1 percent after the minimum wage was increased in 2005. The number of jobs in eating and drinking establishments actually increased by 3.1 percent.
The reason? There are more people with more disposable income because of the higher minimum wage. Traditionally, the business created by people spending more outweighs the cost of higher wages.
Whether that holds true during these hard economic times remains to be seen, of course. Today's economic model is anything but traditional.
But part of the road to a national economic recovery must include putting more money into the hands of consumers - money earned through work, rather than government assistance. A wage increase to $7.25 an hour may not seem like much to many of us, but to those impacted it will mean an awful lot.
In Wisconsin, the rate increases from $6.50 to $7.25 an hour today for adult, non-agricultural workers, and from $5.90 to $7.25 for minor, non-agricultural workers. The state's last minimum wage increase was three years ago.
Particularly during a difficult recession, a minimum wage increase can be tough for businesses large and small to manage. Some will be forced to cut hours and positions to keep from increasing the payroll.
But the statistical link between minimum wage increases and overall job losses simply doesn't exist. In fact, most data suggests that minimum wage raises actually create job growth. In Wisconsin, according to the Center on Wisconsin Strategy, there was a job growth of 1.1 percent after the minimum wage was increased in 2005. The number of jobs in eating and drinking establishments actually increased by 3.1 percent.
The reason? There are more people with more disposable income because of the higher minimum wage. Traditionally, the business created by people spending more outweighs the cost of higher wages.
Whether that holds true during these hard economic times remains to be seen, of course. Today's economic model is anything but traditional.
But part of the road to a national economic recovery must include putting more money into the hands of consumers - money earned through work, rather than government assistance. A wage increase to $7.25 an hour may not seem like much to many of us, but to those impacted it will mean an awful lot.
