Pennsylvania Minimum Wage to Increase on July 1st

With the federal government having just passed a minimum wage bill that will increase the standard minimum wage from $5.15 per hour to $7.25 per hour over the next 2 years, Pennsylvania will reach a new level of $7.15 per hour beginning July 1st this year. This will raise the annual income of a minimum wage earner working 40 hours per week to $14,872, still below the federal poverty level for a family of four, but much better than the $10,712 under the old rate. For informational purposes we have attached the standard collateral from the state government. Click here to see the full document from the PA Dept of Labor and Industry (you must have Adobe Reader to view).

Critics of the increase say it will cost jobs, maybe thousands of jobs. In our opinion, if Pennsylvania's minimum was substantially higher than all other states, especially those near by, this may have been the case as incentive to move a business to a cheaper venue would build. With most states around us and a majority of states around the country also raising theirs we do not see many jobs being lost. This will add inflationary pressure from businesses heavily dependent on minimum wage positions like some restaurants and retail. The benefit in Pennsylvania alone will be tremendous. With 440,000 workers estimated by the state to be at minimum wage, this increase from $5.15 per hour will put over one billion dollars of extra revenue annually into the hands of people who need it most and will raise their standard of living. As economists know, money makes money. This added revenue injected into the state economy will help increase demand for more consumer goods and housing. History shows that responsibly raising minimum
wages has only helped economies over all.