Reprinted from Keystone State News
In January, low-wage workers in Pennsylvania will be missing out on pay hikes seen in 23 other states.
Neighboring states such as Ohio are starting the new year with higher minimum wages.
Gillian Kratzer, deputy director of the advocacy group Better Pennsylvania, said House Democrats are concerned about raising the minimum wage, which has been $7.25 since 2009. She argued a better economy requires people to have money to spend.
“When you are living not just at minimum wage but even within some distance above it, you do not have money to spend, you are living paycheck to paycheck,” Kratzer pointed out. “Last year in the Pennsylvania budget, Democrats, along with Gov. Shapiro, pushed very hard to pass a budget that would help people in Pennsylvania.”
Kratzer emphasized it is up to the General Assembly to set the minimum wage. She added the state House passed House Bill 1500, legislation to raise the minimum wage to $15 an hour by 2026. The idea has bipartisan support but the Senate has not yet acted on a similar bill, Senate Bill 1186.
President-elect Donald Trump recently told NBC the current rate of $7.25 is “a very low number” and he would consider raising it. Kratzer stressed increasing the minimum wage in Pennsylvania would also help businesses to thrive.
“One of the things that it does for businesses is it helps decrease turnover,” Kratzer observed. “Turnover is a really big problem, because when you hire a new employee, you have to train that new employee. Decreasing turnover by paying a wage that people can live on means that you’re keeping employees.”
Kratzer added the notion raising the minimum wage will lead to business closures is not supported by evidence.
According to the legislation tracking website Ballotpedia, 23 states are set to increase their minimum wages by an average of 75 cents, with bordering state Ohio seeing a 25-cent increase. New York State will raise its minimum wage by 50 cents to $16.50.
