On Friday, Pennsylvaniaâ€™s minimum wage will increase ten cents, to $7.25 an hour. During already troubling economic times, the increase in minimum wage will hurt business, and will not help the minimum wage earners either. Reluctant to absorb further decline in profit, businesses will pass the new cost on to consumers, or even lay off workers.
Some argue that the increase in minimum wage will stimulate the economy by putting more in the pockets in workers, allowing them to spend more on food, clothing and entertainment. This argument over-looks the fact that there is evidence showing fewer minimum wage earners, mostly young adults or teens, will be hired. Furthermore, workers may find their hours cut, in order for the company to reduce costs.
Continuing to increase the minimum wage is just perpetuating a cycle of cost increases and job loss.