By now, the news has sunk in that the Democrats have taken over Congress, and everyone’s talking about what will happen next in Iraq.  But what, if anything, does it mean for your earning potential?

In USA Today, Sue Kirchhoff and Kathy Chu speculate about how our world might change in light of the recent political developments.

Minimum Wage: Raising the federal minimum wage is expected to be a top priority. According to USA Today, Democratic California Rep. Nancy Pelosi, who's in line to become Speaker of the House, said last Wednesday that the Democratic majority will open the 110th Congress by proposing boosting the federal minimum wage from $5.15 an hour to $7.25. The minimum wage was last raised in 1997.  It's uncertain whether the Democrats would propose an immediate increase or phase it in.  This is good news for people who get paid by the hour, but the increase could mean that some companies have to make workforce cuts.

Retirement: Says USA Today: A proposal to encourage employers to give retiring workers the option of converting their nest eggs into a stream of income could gain momentum under a Democrat-controlled House. The move comes as more employers cut traditional pensions, which offer a flow of income to retirees, and shift to 401(k) plans.  Lawmakers in both parties have backed the idea of offering workers lifetime income — similar to a traditional pension plan — when they retire, to reduce the risk they'll run out of money. One way to do so is through an annuity, an insurance product that turns a lump sum, such as a retirement-plan balance, into a monthly check for life.  Another Democratic priority — for the government to match the first $1,000 workers save in a retirement plan — faces an uphill fight because of the likely cost.  But wouldn’t that be nice for those of us socking it away as fast as possible in order to survive the likely demise of Social Security?

Education Costs: The Democrats, writes USA Today, favor a tuition tax break allowing married couples with joint income of up to $130,000, or single taxpayers with income of up to $65,000, to claim a $4,000 deduction for college tuition and related expenses.  This would come at a great time for those who have been prevented from getting advanced degrees because of astronomical tuition that’s not subsidized by an employer. 

What are your thoughts on the outcome, and the material effects, of the election?