The new minimum wage: Will it just increase layoffs?

Big financial events bring economists and analysts out of the wood work, anxious to give their opinions and get their names in the media. The increase in the minimum wage, which is effective today, is a prime example. The federal minimum wage will go from $6.55 to $7.25. That is an 11 percent hike, which is a pretty healthy bump.

Some states already have minimum wages above $6.55, so workers in those state will get a smaller benefit. The national increase is a big enough jump that some small businesses may not be able to handle the increased expenses. And some large businesses with a lot of low-end workers could use the increase as an excuse to cut more workers.