Minimun wage to $7.25 per hour from $5.15 per hour

Legislation to provide the first increase in the federal minimum wage in a decade won final U.S. congressional approval on Thursday, and headed to President George W. Bush to sign into law.

Democrats promised a pay boost for America's lowest-paid workers in capturing control of Congress in last November's elections from Bush's Republicans.

The measure would boost the minimum wage over two years to $7.25 per hour from $5.15 per hour, and provide $4.84 billion in small business tax breaks to help pay for it.

With a deteriorated federal budget will be interesting how Bush and the next government will drive the fiscal policy and how this will impact the economy.