The Current Situation- National Level

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This map shows each state's minimum wage compared to the Federal minimum wage of $5.85 an hour. As the map shows, most states are above the federal's wage, such as Hawaii and New York, some have the same and only a few have minimum wages below the federal minimum wage, such as Kansas. Like the situation in Hawaii, the minimum wage in all states, whether it is $7.25 or $5.85, cannot support a family of 2 or 3. According to the Economic Policy Institute(EPI), a minimum wage worker working 40 hours a week for every week of the year, would earn $10,712, which would put his/her family nearly 40% underneath the national poverty line, which is $17,170 for a family of three. This is a drastic problem in our nation which needs to be addressed very soon, because thousands of American families are suffering from this problem every day. For a family of two, living off a minimum wage, their salary will still be about $4000 behind the current poverty level, a slight improvement from a family of three, but still a problem that needs addressing(2). The graph above the map shows the current poverty lines for families of two and three, and the minimum wage line.
Before July 24 of this year, the last time the federal minimum wage was raised was in 1997, the longest stretch of not being raised since 1938 when minimum wage was first created. Also, minimum wage at this time has the lowest 'real' value in 50 years. Real value basically is the value of money with inflation factored in. Inflation can decrease the spending power of money or make prices of goods rise. By not continuing to raise the federal minimum wage, the government chooses to leave low-wage workers in the dust, because prices rise and the spending power of their money lowers, yet they are still stuck with the same wage. The government has been trying to help low-wage workers through others ways, not just by raising the minimum wage. They offer an earned income tax credit(EITC) which lets families with two or more children who earn a minimum wage salary a tax credit of $.40 to every dollar, which comes out to about $4000 a year. This definitely helps struggling families, yet in most cases it isn't enough(2).
There are many supporters of raising the national minimum wage to $7.25. EPI's studies show that by raising the national minimum wage from $5.85 to $7.25 an hour many low-wage earning families would live above the poverty line rather than below it. Congress at this time is considering a bill that would raise the national minimum wage to $7.25 an hour, which would raise it gradually until $7.25 sometime in 2009. Opposition against the national raise to minimum wage say that if we were to raise it, many businesses would lose profits because they would have to pay their workers a lot more, and then eventually lay-off some employees, thus raising the unemployment rate. Instead, some economists suggest a tax-incentive to businesses that will pay their employees a higher wage. By offering tax cuts to these businesses, workers are able to receive a higher paycheck and their employers receive tax cuts for paying them more (3).
The current situation of minimum wage in the United States is certainly looking dire. At this time, the federal minimum wage cannot support a family of two or more children, the exception to this are families that live in states that have a high minimum wage, such as Hawaii or Washington. The earned income tax credit(EITC) tried to somewhat solve the increasing difference between the minimum wage yearly salary and the poverty line(about $10,000 to $17,000 yearly)(2). Many economists fully support the raise of the national minimum wage, from $5.85 to $7.25 an hour by 2009, arguing that this would bring the majority of low-wage families out of poverty. Opposers of raising it argue that raising the minimum wage would cause many businesses to struggle and have to lay off employees, something that no one wants to see. The government needs to analyze and figure out the opportunity cost of each option and weigh which one will be the best of America's citizens and economy.

1. http://upload.wikimedia.org/wikipedia/commons/b/b5/State_min_wage2006_copy.jpg
2. http://www.epi.org/content.cfm/webfeatures_snapshots_20070131
3.http://www.epi.org/content.cfm/webfeatures_viewpoints_minwage_tax_incentives_testimony_01102007

** For further information, http://www.epinet.org/content.cfm/issueguides_minwage is a fantastic site with opposing viewpoints on minimum wage. An excellent tool for anyone who wants a better understanding of minimum wage.