Obama, business groups differ on minimum wage plan

WASHINGTON (AP) – President Barack Obama says raising the minimum wage to $9 an hour and tying future increases to inflation will boost the incomes of millions living in poverty and spur job growth by pouring more money into the economy. But business groups are not so sure.

They complain that increasing the federal rate from $7.25 an hour would discourage employers from hiring new workers, hurting the very people Obama aims to help.

Obama pointed out in his State of the Union address Tuesday that 19 states and the District of Columbia already have minimum wages set above the federal rate of $7...