The federal minimum wage will rise from $5.15 to $5.85 on July 24. The first increase in 10 years, it marks the end of the longest period without a raise since the minimum wage was enacted in 1938.
The minimum wage will again increase to $6.55 in 2008 and to $7.25 in 2009.
However, when adjusted for inflation, those minimum wage workers will have less buying power than minimum wage workers had half a century ago, says Business for Shared Prosperity, a nationwide network of employers and investors.
Even after rising to $7.25 in 2009, the minimum wage will still be lower than it was in 1956, when it was $7.65 in today's dollars. It will be lower than it was in 1968, when the minimum wage peaked in value at $9.56 in today's dollars.
In states with minimum wages higher than the federal minimum, the number of small businesses and the number of small business employees grew more than other states.
