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Obama minimum wage plan renews economic debate

6:07 AM, Feb 14, 2013   |    comments
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WASHINGTON (AP) - President Barack Obama says increasing the minimum wage to $9 an hour and tying future increases to inflation will raise the incomes of millions living in poverty and spur job growth.

Business groups are not so sure. They complain that boosting the federal rate from $7.25 an hour would discourage employers from hiring new workers, hurting the very people Obama aims to help.

In all, 19 states and the District of Columbia have minimum wages set above the federal rate of $7.25. Obama highlighted that disparity in his State of the Union address on Tuesday night.

Ten of those states make annual cost-of-living adjustments, including Washington state, where workers earn at least $9.19 an hour. That's the highest minimum wage in the country.

The Associated Press

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