Monday, March 24, 2014

Report: Raising minimum wage in Pa. would kill 28,000 to 119,000 jobs

Democrats are behind efforts to raise the minimum wage, which like every other program Democrats back would end up hurting the economy.

From NFIB:
A handful of bills have been introduced in the Pennsylvania legislature to raise the state’s current $7.25 minimum wage. Advocates claim that will help to bring people out of poverty.  But a reliable economic model used in an NFIB study released today finds that minimum wage increases in Pennsylvania will actually hurt those they are intended to help by eliminating entry level jobs in the Commonwealth.
The National Federation of Independent Business Research Foundation report projects the effect that three Pennsylvania minimum wage bills will have on jobs and economic activity in our state. The findings forecast the loss of as many as 28,000 to 119,000 jobs over a ten year period when the wage is increased to $8.75 or $9.00, as those increases are tied to cost-of-living adjustments. The report uses a widely accepted regional economic model that is also used by the federal government, local governments and universities created by REMI, Inc. (see  Earlier this year a Congressional Budget Office report on raising the national minimum wage to $10.10 projected 500,000 job losses in the U.S.
“The NFIB study shows that more than half of the jobs would disappear from the small-business sector in Pennsylvania,” said Kevin Shivers executive state director of NFIB Pa., “While minimum wage hikes are intended to help those below the poverty level, they will do just the opposite.
NFIB Research Foundation Report on the effect of raising the minimum wage in Pennsylvania

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