Pennsylvania and Congress have not yet, but should, join the trend to higher minimums.
Meanwhile, the worldwide Labor Organization in Myanmar said that the introduction of the new national minimum wage will help raise living standard among low income workers and ensure fair competitions among their employers. It does not apply to businesses with less than 15 workers such as family businesses. But overall the changes that have occurred are some needed push-back against trends that have made it hard for low-income workers to cope.
National unemployment has returned to pre-recession levels and this year, 29 states have enacted minimum-wage increases.
The Birmingham City Council passed an ordinance late last month to establish an hourly minimum wage of $8.50 by July 2016 and $10.10 by July 2017.
Regulatory changes always are controversial but these policies mostly are playing catch-up for low-income workers who clearly need the protection. Future increases would be tied to inflation. The analysis also predicted “a two-thirds chance” that a minimum wage hike to $9 would trigger “a reduction in employment of 200,000 workers”. The minimum wage earners who manage to remain employed become loyal constituents, thinking the Democrats have bestowed some goodness upon them and/or put the screws to the boss.
Ralph R. Reiland is an associate professor of economics and the B. Kenneth Simon professor of free enterprise at Robert Morris University in Pittsburgh.