Minimum Wage Increase Goes Into Effect

ATLANTA (AP) - The federal minimum wage goes up 70 cents today,
from $6.55 to $7.25 an hour.
Backers of the increase say it's long overdue for millions of
the nation's working poor.
But some economists say the increase could prolong the
recession, by forcing small businesses to lay off the same workers
that the pay hike was meant to help.
Minimum wage advocates counter the wage bump will keep more
working poor afloat, and say more increases are needed to help
stimulate consumer spending and strengthen businesses in the long
run.
Atlanta resident Marilynn Winn, who earns $6.75 an hour driving
cars between auto auctions, worries the pay boost could lead her
boss to make job cuts, especially aimed at older workers like
herself.
Still, she said she'd be grateful for the raise if she gets to
keep her job.

News 5's Chad Petri is investigating how the hike will impact local businesses. He'll have the story tonight on news 5 at 6:00.

(Copyright 2009 by The Associated Press. All Rights Reserved.)