Why is Washington State, with 9.3% unemployment going to raise the minimum wage? Because it's the law (and a stupid law at that).
Way back in the booming '90s there was a ballot initiative to tie the state's minimum wage to inflation in Seattle. As if inflation in Seattle is representative of inflation in Republic. Unfortunately, this quickly resulted in Washington State having the country's highest minimum wage. And now it is set to increase to $9.04 in 2012.
There's an immutable law in economics that if raise the price of something people will demand less of it. Raising the minimum wage increase the price of labor. So businesses will now demand less labor. Even business that don't pay the minimum wage will have to raise wages in order to attract good workers. And poor, unemployed, and inexperienced workers will be priced out of the market. As Thomas Sowell said, the true minimum wage is zero, because that's what you'll be earning if you aren't worth to an employer what the mandated minimum wage is.
Washington State's minimum wage is just the worst example. Any mandated minimum wage is going to increase unemployment and hurt business, especially the unskilled or entry-level employee and small businesses. It's bad policy and most importantly, bad economics. And it hurts people. That should be enough to abolish it. Unfortunately, the Washington State Democrats, who pretty much run the state, are beholden to the labor unions who like the minimum wage because it decreases competition for their over-paid jobs. So don't hold your breath.



