After years of no change, a few years ago, we had a three phased increase in minimum wage. Now we are discussing raising it further, to $10.10 an hour. Are people that work for minimum wage better off after an increase in minimum wage? Why or why not? Think about this from the perspective of the business. What will a business do if it is faced with an increase in labor cost?

How will this impact people that previously earned $11.00 an hour? Will they get an increase as well?

Before the last increase, the unemployment rate was 4.7%; after the increase, the unemployment rate rose to 10% and although declining now, is still over 6%. Could there be a relationship between the increase in minimum wage and the unemployment rate?