Today the minimum wage increases by 70 cents, from $6.55 per hour to $7.25 per hour — the final of three increases to take effect under legislation enacted by the Democratic Congress in 2007. The wage increase will help an estimated 4.5 million workers in 31 states provide for their families. The Economic Policy Institute estimates that this increased purchasing power will boost consumer spending by more than $5.5 billion over the next year and result in $120 in extra monthly income for the average worker.
More on those who will benefit:
Three-quarters of those who will benefit from this wage increase are 20 years old or older.
More than half are families with yearly incomes of less than $35,000.
Over sixty percent are women, and over 400,000 of them are single parents with kids under 18.
Over two million children will benefit from this boost in their parents' wages.
Millions of hardworking Americans will be getting a raise. As the final step of the minimum wage increase goes into effect, studies have shown we are also stimulating the economy by giving hardworking Americans the income they need to buy groceries, fill up their gas tanks, and get their children ready to head back-to school.
When Democrats assumed control of Congress, increasing the minimum wage was one of our first orders of business and it has meant real progress for American families struggling to make ends meet–a $4,000 annual raise now that it's fully phased in. We are continuing that work as we reform health care to make it affordable, reliable and accessible for all Americans.