Effects of a minimum-wage hike

A scholarly study cited by EPI restates the well-known fact that minimum-wage increase stimulates the economy, while also increasing the social welfare of lowest-tier workers. EPI summarizes:

Based on the economic multiplier effect that results from putting additional income in the hands of lower-income workers, raising the minimum wage will likely have a modest but positive impact on job creation, leading to an additional 85,000 net new jobs when fully phased in. Lower-income earners spend their income more immediately, more completely, and more locally, than do higher income earners, and therefore generate more economic activity.

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