The minimum wage debate is in full swing, following President Barack Obama's mention of a plan to increase base pay for the nation's low earners at the State of the Union Address. The proposal called for a staggered series of increases that would raise acceptable hourly pay from $7.25 per hour to $9 per hour to accommodate for inflation, which would mean business owners have to fork over more for employees' time and attendance.

A recently released study by a Texas A&M assistant professor of economics, Jonathan Meer, suggests that there might be consequences for the increase. In the "Effects of the Minimum wage on Employment Dynamics," Meer writes that effect of the wage increase will not impact the positions people already hold. If they are currently employed, workers will benefit from the pay hike. However, it might dampen hiring because business owners may be less likely to create additional positions.

On the other hand, the losses may not be as bad as employers anticipate, according to The Post Bulletin. For one, it's likely they will be able to pass these extra costs on to customers because increases will affect competitors as well. The source also suggests that low-wage workers are also in the habit of spending pay increases, so these funds will be pumped back into the economy and have wide-reaching benefits.

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