Side effects of minimum wage increases

[Cyberman]

09/01/1997 --> $5.15
07/24/2007 --> $5.85
07/24/2008 --> $6.55
07/24/2009 --> $7.25

What are the possible side-effects of raising the minimum wage?

Do business hire more people or simply expect more production from fewer people?

Does inflation kick in after a raise in the min wage?

Do low-skilled employees get caught in expense control lay-offs?

These are just a starting point.

[lensmanicu]

That is a complex issue. On one hand you have a Government trying to help a hurting people. On the other hand you have bussiness trying to maintain a certain profit margine so they can grow there company and hire more employees. So in an huurting economy where jobs is the primary focus maybe a freeze in min wage would be in order coupled wwiwth an extension of the Bush tax cuts.