Oh, there's more than that to it...

Unions, as you say, are filled usually with skilled workers who make more than minimum wage. But skilled workers are generally understood to be able to do the work of several unskilled workers. So there's a cost-benefit analysis that goes on for companies deciding whether they should go with a handful of skilled workers or a larger number of unskilled workers. When the cost of the unskilled goes up, it makes the skilled workers look like a better deal.

My concern is that the Fed already has a lot of inflationary concerns to deal with right now, and congress clearly doesn't give a ****. If Bernanke decides that the increase is going to lead to inflationary issues, he will have to raise interest rates to compensate, which at this point will plunge the economy into a full on recession. That's why the Fed has held still for the last several meetings. They don't want to lower rates because they're still concerned about and watching inflation, but they know if they raise rates even a little bit right now, it'll deal a disastrous blow to an already cooling market.

And on an unrelated side note... Disneyland's wages get even closer to minimum wage....

I'm sure it will take time to make a dent in that problem....

Raising the wage around here is good, but, I can understand the problems you all are associating with it.

Still it isn't enough to make it. Most people I know at work have 2 or 3 jobs.

What is the answer? I hope this is a step towards it?

And so I didn't say it was an absolute. Some won't have a problem with it and in most states the impact is much less than a 36% increase. It is worth noting that, at least in California this minimum wage increase won't be an increase and in most other states the major class of employees in a restaurant are partially exempt from minimum wage laws.

Some will have problems, many won't, and most will find a way to get on.

I don't mean to say that the hike will have a dramatic negative impact just that it would be better for pretty much everybody involved if minimum wage increases were rationalized.

As opposite anecdotal evidence back when my mom owned her last tailoring shop she had one employee making minimum wage (mostly working the counter and cleaning up). This was not a booming business and on most days she cleared less than $100 (and in certain seasons much less). A $17/day raise for that employee doesn't seem a big deal but it would have been a huge one. I don't know how she would have responded but it would have been a problem.

Better that she know for a year ahead of time that the minimum wage would go up approximately 2% a year than 36% every moon's age when congress decided to get around to it.

Next year it's supposed to go up to $8 per hour.
So far between 1997 and 2007 minimum wage has gone up $2.
I'm undecided about it at the moment.