$9 MINIMUM WAGE: The pros and cons - KMSP-TV

$9 MINIMUM WAGE: The pros and cons

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Ever since the State of the Union, one of the biggest talkers, if not the biggest, has been the proposal by President Obama to raise the minimum wage from $7.25 to $9.00.

The proposal would see the federal floor on hourly wages reach $9 in stages by the end of 2015.

Tying the minimum wage to inflation would allow it to rise along with the cost of living. If enacted, the measure would boost the wages of about 15 million low-income workers, the White House estimated.

The $9 minimum wage would be the highest in more than three decades, accounting for inflation, but still lower than the peaks reached in the 1960s and 1970s.

"Let's declare that in the wealthiest nation on earth, no one who works full time should have to live in poverty," President Obama said in the State of the Union address.

This topic is something economists have gone back-and-forth on for years.

A number of studies have found a link between a higher minimum wage and higher unemployment, but other studies show hiking the minimum wage by a buck or two doesn't appear to worsen unemployment in any noticeable way.

Conservatives have often argued that higher minimum wages burden job creators, especially during times when the economy is weak.

But, many on the left say this puts more money in consumers' pockets, which means they buy more and contribute more to our overall economy, instead of a company pocketing more money.

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