The federal minimum wage is rising to $5.85 this week, up from $5.15. The change is part of a plan to give minimum-wage workers an additional 70 cent boost each summer until 2009, when the minimum wage will be $7.50, or about $15,000 a year before taxes and without taking time off.
The poverty level in the us is around $10,210 a year.
The effect that a minimum wage increase will have on the economy is hotly debated. Some say it will cost jobs and raise prices, others say that it won’t. We’ll find out.