Minimum Wage Hike- Helpful or Harmful?

On July 24th, the federal minimum wage is scheduled to go from$6.55 to $7.25 per hour.  This is an 11 percent raise and while it will benefit those that are making less than that now, it could hurt some businesses, especially in an already difficult economy. Small businesses, mom-and-pop type shops, will probably be the hardest hit. With already low margins, they could be forced to reduce workforce in order to keep afloat.

I’m not en expert economist, but this type of increase doesn’t seem like the best idea in an economy like we’re currently in. Granted, it will mean more money in people’s paychecks,  but what if businesses close because they can’t afford to pay the higher rates? Also, since the minimum wage is higher, other wages will have to go up as well in order to stay competetive for better workers.  This will be good for some, but bad for others. Overall I think it will turn out to do more harm than good, but I guess only time will tell.  What are your thoughts?