Reaction Mixed to Gov. Wolf's Minimum Wage Proposal

In the face of protestations that raising the state minimum wage in Pennsylvania would have negative effects on employment and the economy, Democratic Gov. Tom Wolf claims that exactly the opposite is true.

“When one million Pennsylvanians finally get a wage increase as a result of this proposal, it will help families, and again, it's going to help our customers and all of our business, because they're going to have more money to spend in the businesses that are out there,” Wolf said. “It's good for the economy. It's good for all of us.”

The governor’s remarks came at a news conference in Harrisburg at which he unveiled his proposal to increase the state’s minimum wage to $12 an hour from the current $7.25 an hour.

His plan further calls for 50-cent hikes every year until it hits $15 an hour in 2025, and then there would be a perpetual series of increases tied to the cost of living.

Wolf portrayed his proposal as a fiscally responsible plan that would allow workers who currently rely on public benefits to come off those programs.

“If people earn a fair wage … they're going to need less public assistance, less taxpayer assistance,” he said. “That's going to save taxpayers just in the first six months $36 million, and in the next two years, $119 million.”

As is common when such proposals arise, Wolf’s plan elicited both praise and condemnation.

Gordon Denlinger, state director of the National Federation of Independent Business in Pennsylvania, said that the governor was misunderstanding the impact that raising the minimum wage would have.

“Many small businesses like restaurants or small shops simply cannot afford to hire inexperienced or unskilled workers at a rate of $15 per hour,” Denlinger said in a statement. “The business owner may not be able to raise prices because customers won’t pay a higher price. The employer is forced to reduce hours or eliminate jobs.”

Denlinger cited a study that showed that in the aftermath of Seattle’s minimum wage increase, many jobs at the low end of the pay scale simply disappeared, making it harder than ever for unskilled workers to find employment.

“That’s not good for employers or employees, and it’s not good for Pennsylvania’s economy,” Denlinger said. “It actually hurts those it may be intended to help.”

The Pennsylvania State Education Association, on the other hand, supported Wolf’s plan. The association’s president noted in a statement that many PSEA members such as aides and custodians would stand to see substantial pay increases if it becomes law.

“The governor’s minimum wage plan will lift wages for the professionals who work with our students to improve their reading skills, cook and serve their lunches, greet them when they arrive at school each morning, and maintain safe, healthy, and clean buildings,” he said.

During the governor’s news conference, state Sen. Christine Tartaglione (D-Philadelphia) argued that with all the states surrounding Pennsylvania already having higher minimum wages, the fact that Pennsylvania isn’t currently outpacing its neighbors economically is evidence that a wage hike won’t hurt the economy.

“I don't know, Governor Wolf, I ask you: Since our neighbors are raising the minimum wage, do you see people flocking to Pennsylvania in search of jobs?” she asked. “I know I haven't.”