The Minimum Wage Debate
States looking to improve their economic outlook might want to start by shelling out a few more bucks.
According to a report by the Department of Labor the 13 states that raised minimum wage added jobs at a faster pace than those who kept the purse strings tight. According to the report the number of jobs grew an average of 85% in the past six months. The average for the other 37 states was 61%.
As of 2009 the federal government has mandated a national minimum wage of at least $7.25 per hour. Then at this year's State of the Union address President Obama called on congress to raise that number to just over $10. Shortly after that he signed an executive order making sure people working on federal service contracts were paid that rate.
Economists say this report adds fuel to the argument that raising the country's minimum wage will improve the overall job market. And next year 16 more states will test this theory by raising their own minimum wage.