What is the right approach to this question? Tom Harkin introduced a bill to raise the federal minimum wage to $9.88 per hr (roughly the buying power of the minimum wage in 1968).
Harkin estimates that his minimum wage increase would mean about $25 billion more for GDP, 100,000 more jobs and 28 million Americans would get a raise.
To those that say raising the minimum wage would actually increase unemployment, Harkin says there's simply no proof of that. He says they've found that when minimum wages were increased, employment actually went up.
Then from the opposing side:
Bill Dunkelberg, chief economist for the National Federation of Independent Businesses, a group that lobbies against increasing the minimum wage, says that every dollar an employee gets comes out of somebody's pocket. He says it's not logical that raising the minimum wage will add more spending money to the economy.
Who has the better argument?