Five Myths About Raising the Minimum Wage Debunked

Experts say higher wages won't hurt small businesses or lead to job losses

Apr. 10, 2026 at 6:44pm

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A geometric abstract illustration using bold primary-colored shapes and clean lines to represent economic data and trends related to minimum wage policy.A conceptual illustration capturing the economic impacts of raising the minimum wage, beyond just a few extra dollars for workers.Harrisburg Today

A new report from the Pennsylvania Budget and Policy Center debunks common misconceptions about raising the minimum wage, including that it's only for young workers, will hurt small businesses, and lead to job losses. The analysis shows a higher minimum wage can actually benefit workers, businesses, and the economy.

Why it matters

Raising the minimum wage is a key policy debate in Pennsylvania and across the country, with many legislators still hesitant to increase wages. This report aims to counter common arguments against a higher minimum wage by providing data-driven analysis on the real-world impacts.

The details

The report addresses five common myths about raising the minimum wage: 1) That the minimum wage was never meant to be a living wage, 2) That it will increase prices across the board, 3) That it will hurt workers making above the new minimum, 4) That it will destroy small businesses, and 5) That it will lead to job losses. The analysis shows these claims are false, and that a higher minimum wage can actually benefit workers, businesses, and the economy by increasing incomes, productivity, and consumer spending.

  • The minimum wage in Pennsylvania has remained stagnant for over a decade.
  • The report was originally published in October 2019 by the PA Capital-Star.

The players

Marc Stier

The director of the Pennsylvania Budget and Policy Center, a progressive think-tank in Harrisburg.

Pennsylvania Budget and Policy Center

A progressive think-tank based in Harrisburg that conducted the analysis on minimum wage myths.

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What they’re saying

“Raising the minimum wage isn't just about a few more dollars a month in the pockets of working people. It's not a hand-out to low-wage workers.”

— Marc Stier, Director, Pennsylvania Budget and Policy Center

“If we want them to live decent lives, we have to raise the minimum wage back to about half of a typical worker's wage—around $12 today and close to $15 by 2025.”

— Marc Stier, Director, Pennsylvania Budget and Policy Center

What’s next

The Pennsylvania legislature is expected to continue debating a minimum wage increase in the coming year, with this report likely to be cited by advocates for raising the wage.

The takeaway

This analysis shows that raising the minimum wage is an important tool to boost incomes, support small businesses, and strengthen the economy - countering common myths used to oppose minimum wage hikes.