Raising Minimum Wage: Increase in Prices, Decrease in Jobs?

For some of America's lowest-paid workers, the new year means a pay raise. Some states set their own minimum wages, above the current federal rate of $7.25 an hour, and that rekindles an old debate over whether minimum wages make sense — especially at a time of high unemployment.

Like several other states, Washington state's minimum wage is indexed to the cost of living. This year, the formula has raised the statewide minimum from $8.67 to $9.04 an hour, making it the nation's highest statewide rate.