For a while, Democrat leaders have been pushing for a $15/hour minimum wage. They’re pushing it harder now due to the pandemic.
They believe it would greatly help hourly workers, especially during a difficult time. But economists have questioned it from the start.
And now, a new report has issued a serious warning.
The report comes from the Congressional Budget Office (CBO), and it addresses the $15/hour concept — and presents a startling consequence.
President Joe Biden supports the wage increase, but now he might want to think again.
The CBO found that legislation would increase the federal budget deficit by $54 billion between 2021 and 2031.
More importantly, however, the legislation would drive up the prices of goods and services, while also reducing employment by 1.4 million jobs.
In other words, as the minimum wage rises, employment would actually take a dive.
And of course, that defeats the purpose of helping the hourly workers, who would likely face hourly cuts and job losses.
According to the CBO’s report, the minimum wage jump wouldn’t have the intended impact:
In 2021, most workers who would not have a job because of the higher minimum wage would still be looking for work and hence be categorized as unemployed.
For weeks now, Biden and Democrat leaders have pushed to get the $15 minimum wage into the $1.9 trillion relief package.
And in a recent address, Biden said that “nobody working 40 hours a week should be living below the poverty line.”
The problem is clear, however: if the wages increase, some business owners will be forced to cut hours and even entire jobs.
That’s exactly what this report indicates and now, even some Democrats are starting to hesitate.
For example, Sen. Joe Manchin (D-WV) worries that the amped-up minimum wage would put tremendous strain on small businesses.
And those businesses, and many other employers, are already struggling due to the ongoing pandemic.
So should we really pass this $15/hour minimum wage rule…?
- A new report shows a potentially devastating consequence to the $15 minimum wage idea.
- The CBO says this could result in a loss of 1.4 million jobs.
- Some Democrats, like Sen. Joe Manchin, are concerned that a $15/hour wage would hurt small businesses.