Effective yesterday, PA's minimum wage rose .90 cents to $7.15. The safety-net has now become a hammock.
I haven't had a minimum wage-type job in a long time, but I imagine that this is much more than just a safety-net type figure. What an artificial price increase does is eliminate the incentive to create new jobs in this area of the market and perhaps necessitate the elimination of jobs that are on the margin of profitability for employers.
The biggest expenses pinching people at the lower end of the pay scale are health care and school taxes. Two areas where government interference and lack of competition have artificially inflated costs above what the market would dictate.
Monday, July 2, 2007
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