S&P Says Measured Increases to the Minimum Wage Would Benefit the Economy

A new study by S&P Global Ratings finds that measured increases to the minimum wage would ultimately benefit the U.S. economy. Satyam Panday, deputy U.S. economist at S&P,  says current economic conditions are favorable for an increases in the federal minimum wage. He notes that there is a link between higher wages and increased productivity. Numerous retailers, including Starbucks  (SBUX) - Get Report , McDonald's  (MCD) - Get Report , Gap  (GPS) - Get Report , Costco  (COST) - Get Report  and Bed Bath and Beyond  (BBY) - Get Report , have announced wage increases in recent years. Panday says while higher wages have had some impact on the bottom line for companies, it hasn't been enough to prompt ratings changes. TheStreet's Rhonda Schaffler has details from Wall Street.