It's time to increase the minimum wage

It's time to increase the minimum wage 

Can you imagine having your buying power cut in half? 

Across America, this has gradually happened to people working at minimum wage jobs, even as more adults, many with families, fill these positions. 

In 1963, an hour of work at the minimum wage allowed an employee to buy 7.6 loaves of bread. Today, a person earning the minimum wage can buy less than half that amount of bread.

That fact illustrates how far the working poor have fallen behind -- even as the many others have benefited from record highs in the stock market – and underscores the need for lawmakers to take action to increase the minimum wage. 

Legislation I have co-sponsored, H.B. 1896, would increase Pennsylvania's current minimum wage from $7.25 per hour to $9 per hour and then to $10.10 per hour a year later.

This legislation would help raise families out of poverty and boost our economy.

Increasing the minimum wage to $10.10 per hour would increase the annual earnings of a full-time worker by more than $5,900 to $21,008. For a single mother with two children who works 40 hours per week, this would get her family above the poverty line, which is $19,530 for a household of three. 

It also would reduce the family's reliance on government services. One only needs to look at fast-food restaurants, which often pay minimum wage, to see that this is true. About 40 percent of fast food-workers receive about $3.8 billion in government aid.  

By raising the minimum wage, I also believe we can help our economy. Most workers making minimum wage need their paychecks just to make ends meet. They don’t save their money because they can’t. Their paychecks go immediately back into the economy.

Raising the minimum wage may also benefit businesses by reducing staff turnover and increasing productivity. Costco, which has a starting wage of $11.50 per hour, has found this to be true. 

"An important reason for the success of Costco’s business model is the attraction and retention of great employees," Costco CEO Craig Jelinek said in an interview. "Instead of minimizing wages, we know it’s a lot more profitable in the long term to minimize employee turnover and maximize employee productivity, commitment and loyalty." 

Adam Ravenstahl represents the 20th Legislative District in the Pennsylvania House of Representatives.