Ringing in the new year with a pay raise

For millions of workers around the country, the new year will mean a bigger paycheck. More than 20 states and the District of Columbia are raising their minimum wages in 2015.

In Florida, the increase is modest at just 12 cents an hour. In South Dakota, workers will earn an additional $1.25 per hour. What will that mean for the economy?

“I really don’t think it’s going to make a difference,” says Kedra Jackson, who works part-time at a McDonald’s in Baltimore, where minimum-wage workers will see a 75 cent raise. “A lot of employers are going to cut hours.”

But economists like Elise Gould say far more workers will benefit than lose out. “Families at the bottom really need to spend their money,” she says. “When they spend their money, it increases demand for goods and services, and that really stimulates the economy.”