Connecticut Raises minimum wage to gradual $10.10/ per hour

the democrats are touting it as a victory, republicans everywhere are absolutely heaving. Connecticut became the first state that is going to be adopting president Obamas proposed $10.10 hourly minimum wage. They will not do this all at once however and will do it in steps. however by 2017 the state hopes to have had the minimum wage gradually increased to this point. There are two ways to look at this minimum wage in terms of economic (and ironically political consequences). The first being that according to a democrat, this is good news. they feel the wage increase will not only put more money into an employees pocket but it will also result in employees spending that increased disposable income back into the economy. This will result in economic growth. The model may be a bit more complicated than that but that is essentially what the democrats feel is going to happen. However, the republicans feel that this minimum wage increase is going to not only increase unemployment, it will inevitably result in increases business costs. Businesses that they feel may be affected by this wage are mainly small businesses and the service sector which make up a critical crux of the economy. this will thus result in economic downturn. The fact of the matter is that economic theory is something that I feel has never encountered a situation like this. I feel as if in the short run, we may see some downturn in economic growth as the state gets used to increased costs but in the long run as the amount of money that flows from minimum wage workers into the economy is increased, we may see some economic benefits. At the end of the day, the true consequences of the minimum wage hike can only be seen in the long run and not until the middle of the 2020s will we truly be able to judge whether or not the policy has worked or not.