CBO DESTROYS DEMOCRAT DREAMS OF UTOPIA; ALMOST 4 MILLION JOBS LOST UNDER $15 MINIMUM WAGE
Report estimates elimination of jobs from workforce
Hiking Americans’ minimum wage to $15 per hour would give millions of Americans a raise but would kick a smaller share of people out of work (presumably never to return as their skills are now priced out of the market) according to a new report from the Congressional Budget Office.
EFFECTS OF THE $15 OPTION ON EMPLOYMENT AND INCOME.
According to CBO’s median estimate, under the $15 option, 1.3 million workers who would otherwise be employed would be jobless in an average week in 2025. (That would equal a 0.8 percent reduction in the number of employed workers.) CBO estimates that there is about a two-thirds chance that the change in employment would lie between about zero and a reduction of 3.7 million workers.
In addition, in an average week in 2025, the $15 option would increase the wages of 17 million workers whose wages would otherwise be below $15 per hour, CBO estimates. The wages of many of the 10 million workers whose wages would be slightly above the new federal minimum would also increase.
The $15 option would affect family income in a variety of ways. In CBO’s estimation, it would:
- Boost workers’ earnings through higher wages, though some of those higher earnings would be offset by higher rates of joblessness;
- Reduce business income and raise prices as higher labor costs were absorbed by business owners and then passed on to consumers; and
- Reduce the nation’s output slightly through the reduction in employment and a corresponding decline in the nation’s stock of capital (such as buildings, machines, and technologies).