Governor Josh Shapiro of Pennsylvania is moving quickly to double the state’s minimum wage, proposing an increase from $7.25 to $15 per hour – a rise of roughly 107%. In a recent post on X, Shapiro linked the wage hike to a broader agenda that includes codifying abortion rights, expanding mass‑transit funding, and building more housing, describing these steps as “commonsense” actions that Pennsylvanians want.
Economic concerns raised by experts
Economist Tom Savidge of the American Institute for Economic Research warned that such a steep increase could strain small businesses. Savidge told Fox News Digital that a one‑size‑fits‑all wage mandate ignores regional cost differences and may force owners to raise prices, cut hours, or reduce hiring, especially for inexperienced workers.
He added that larger corporations are better positioned to absorb higher labor costs, potentially giving them a competitive edge over Main Street firms that have fewer options for cost‑saving measures.
Seattle’s experience offers a cautionary example
Seattle, which currently has a $21.30 minimum wage slated to rise to $22.14 in January, has seen mixed outcomes. A 2022 study in the American Economic Journal found that higher wages boosted pay for longer‑tenured workers but reduced hours for less‑experienced employees. Conversely, a 2017 University of California, Berkeley study reported no statistically significant drop in restaurant employment after the city’s earlier wage hikes.
Local business owners in Seattle have reported rising labor costs as a factor in recent restaurant closures, alongside higher food prices and weaker customer demand. A survey by The Intentionalist found that 67% of 136 small businesses in Seattle and surrounding communities felt greater financial strain than during the pandemic.
Illinois joins the push for higher wages
Illinois Governor J.B. Pritzker, who signed legislation in 2019 to raise his state’s minimum wage to $15 an hour, is now urging Congress to raise the federal floor. Pritzker framed the move as an effort to address “higher wages, lower costs, rooting out corruption,” emphasizing that Illinois families cannot wait for relief.
Policy researcher Adam Gorcyca of the Illinois Policy Institute cautioned that higher labor costs could lead employers to cut hours, limit hiring, or raise prices, potentially hurting entry‑level and younger workers. He also noted that Illinois has been one of the slower states to recover from the pandemic, suggesting that wage hikes have not yet translated into stronger labor‑market outcomes.
Democratic leaders see wage policy as a cornerstone of their agenda
Following the Democrats’ midterm victories that gave them control of both chambers of the Pennsylvania legislature, Shapiro said raising the minimum wage is a top priority. He argued that half a million Pennsylvania workers still earn less than $15 an hour, making it impossible to live on a full‑time wage in 2026.
While the proposals have drawn criticism from small‑business advocates and some economists, the administration’s response highlights a belief that higher wages are essential for a livable standard of living and that the benefits to workers outweigh the potential costs to employers.
Original reporting: Fox News (HLL/CB) — read the source article.
