Contrary to popular belief, raising the minimum wage actually hurts low income workers and benefits large scale corporations. By moving the wage from $5.15 to $7.25, the 40 percent raise will impact every product in America. No one wants to pay 40 percent more for a hamburger so how will companies cover the extra cost of wages? Simple. They cut back on workers benefits, including health insurance and overtime. Companies will introduce more automation.

Of course, large companies like Wal-Mart favor raising minimum wage. They know their small competitors will have greater difficulty paying the higher wages. Wal-Mart can cover the cost by introducing self-check out counters. If you like going in to a Blockbuster Store, do it soon, as they will likely vanish if minimum wage is raised. Netflix will take over. Amazon.com, Buy.com, and eBay will see a boost in business as local businesses can no longer afford extra staff. I am just waiting to see the concession stands in movie theaters replaced with vending machines and microwaves.

Companies have interesting ways of avoiding the higher costs. They will hire part-time workers over full-time workers to avoid the costs of employee benefits. They will hire temporary workers over permanent workers to avoid paying overtime.

The real thrust is unseen. American labor is already too expensive which is why so many jobs are being outsourced and so many illegal immigrants are entering the country. Hike up the minimum wage and these problems will become worst.

Raising the minimum wage only increases inflation, not wealth. We will end up paying more and receiving less. This hurts low income workers more than the middle class or corporate America.

It's looking like President Bush, with some backing from Congressional Republicans, is ok with raising the minimum wage as long as it is coupled with "coupled with tax and regulatory relief for small businesses." Which is a total joke. T…