Pittsburgh City Councilman Dan Gilman introduced a resolution on July 6 that endorses a Pennsylvania House bill that would, in 2018, increase the commonwealth’s government-dictated minimum wage to $12 an hour from the current $7.25.
That same legislation, sponsored by Rep. Patty Kim, D-Dauphin County, would require a state minimum of $15 an hour in 2024.
Gilman says his rational is two-fold – people can’t afford to live on the current wage floor and that neighboring states have a higher minimum and, thus, are more competitive.
But Gilman, Kim & Co. might want to review the experience of Missouri. Effective Aug. 28, the Show-Me State will roll back its minimum wage, from $10 hourly to $7.70.
Citing economic research that shows wages set by government fiat and not by skill set and/or productivity have injurious unintended economic consequences, Gov. Eric Greitens says Missouri’s higher minimum wage would “kill jobs” and “despite what you hear from liberals, will take money out of people’s pockets.”
Is this really what Gilman and Kim support?
Much media attention has been given to dueling studies on the effect of higher government-mandated minimum wages in Seattle.
One study found, as one might expect, that the higher wage floor has led to fewer hours worked and tamped down job creation. But another, supposedly rushed into public view when one Seattle official didn’t like what the first, government-commissioned, study found, attempted to sully the methodology of that study and gave high praise to the wages by diktat concept.
But, again, here’s one fundamental economic truth about wages and employment when government, not the market, sets wage rates – the higher the cost of labor, the less you get of it.
WalletHub ranks Pennsylvania as one of the worst states in the nation to start a business.
The personal finance website ranks the commonwealth 45th.
Among the raps – a high cost to do business and general business environment.
Think Pennsylvania’s onerous corporate tax.
Here’s a novel idea: Instead of constantly attempting to figure out ways to turn taxpayers into venture capitalists with gobs upon gobs of corporate wealthfare, how about lowering the regulatory and tax burden on all businesses and restore – GASP! – a truly competitive marketplace?
The Washington Examiner reports that 21 “mostly sanctuary cities,” Pittsburgh among them, are pledging to make 1 million immigrants naturalized U.S. citizens this year.
“The Naturalize NOW! campaign, which includes liberal and progressive groups and elected officials, heralded the mayors of the cities in joining the national effort,” the newspaper reports.
The goal of the effort, of course, appears to be political. But, in Pittsburgh’s case, a better goal would be to get the city’s failing public schools in some semblance of working order, fixing still woefully underfunded municipal pensions and, oh yeah, making sure its antiquated water system doesn’t collapse, among other things.
Colin McNickle is a senior fellow and media specialist at the Allegheny Institute for Public Policy (cmcnickl@alleghenyinstitute.org).
