Posted on Apr 11, 2021
$15 Minimum Wage Would Reduce Poverty But Cost Jobs, CBO Says
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Raising the federal minimum wage to $15 an hour by 2025 would increase wages for at least 17 million people, but also put 1.4 million Americans out of work, according to a study by the Congressional Budget Office released on Monday.
A phase-in of a $15 minimum wage would also lift some 900,000 out of poverty, according to the nonpartisan CBO. This higher federal minimum could raise wages for an additional 10 million workers who would otherwise make sightly above that wage rate, the study found.
Potential job losses were estimated to affect 0.9 percent of workers, the CBO wrote, adding: "Young, less educated people would account for a disproportionate share of those reductions in employment."
President Biden has advocated for a gradual increase of the federal minimum over several years. The threshold has been stuck at $7.25 an hour since 2009. Dozens of states and cities have surpassed that level; several are already on track to $15 an hour.
Democrats in Congress have vowed to push ahead on raising the federal minimum, although the efforts to include the $15 minimum plan in coronavirus relief legislation have stalled.
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Senate Says No To $15 Minimum Wage For Now, But Democrats Vow To Push On
ECONOMY
Senate Says No To $15 Minimum Wage For Now, But Democrats Vow To Push On
Last week, the Senate approved by voice vote a measure prohibiting an increase of the federal minimum wage during the global pandemic. Biden had included a plan to phase in the $15 wage in his COVID aid proposal, but later said he didn't expect it to survive Senate budget negotiations.
The CBO's report on Monday echoed a similar one in 2019, when the agency assessed the impact of a similar bill to raise the federal minimum to $15 by 2025. At the time, the Raise the Wage Act passed in the Democrat-controlled U.S. House of Representatives but failed to gain traction in the Republican-controlled Senate.
A phase-in of a $15 minimum wage would also lift some 900,000 out of poverty, according to the nonpartisan CBO. This higher federal minimum could raise wages for an additional 10 million workers who would otherwise make sightly above that wage rate, the study found.
Potential job losses were estimated to affect 0.9 percent of workers, the CBO wrote, adding: "Young, less educated people would account for a disproportionate share of those reductions in employment."
President Biden has advocated for a gradual increase of the federal minimum over several years. The threshold has been stuck at $7.25 an hour since 2009. Dozens of states and cities have surpassed that level; several are already on track to $15 an hour.
Democrats in Congress have vowed to push ahead on raising the federal minimum, although the efforts to include the $15 minimum plan in coronavirus relief legislation have stalled.
Article continues after sponsor message
Senate Says No To $15 Minimum Wage For Now, But Democrats Vow To Push On
ECONOMY
Senate Says No To $15 Minimum Wage For Now, But Democrats Vow To Push On
Last week, the Senate approved by voice vote a measure prohibiting an increase of the federal minimum wage during the global pandemic. Biden had included a plan to phase in the $15 wage in his COVID aid proposal, but later said he didn't expect it to survive Senate budget negotiations.
The CBO's report on Monday echoed a similar one in 2019, when the agency assessed the impact of a similar bill to raise the federal minimum to $15 by 2025. At the time, the Raise the Wage Act passed in the Democrat-controlled U.S. House of Representatives but failed to gain traction in the Republican-controlled Senate.
$15 Minimum Wage Would Reduce Poverty But Cost Jobs, CBO Says
Posted from npr.org
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Posted 3 y ago
Responses: 2
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Not all area's of the U.S. need a $15 dollar minimum wage, plus studies from the University of Washington on the effects of the $15 min/wage in Seattle show that most make less money now as they had their hours cut and thousands lost their jobs.
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How?? Having that much money will burn a hole in many a pocket and that would spur the economy.
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SFC (Join to see)
Did you read the article? Can you understand the implication of what it says? The nonpartisan CBO explains that this minimum wage indicates “Potential job losses were estimated to affect 0.9 percent of workers, the CBO wrote, adding: "Young, less educated people would account for a disproportionate share of those reductions in employment." THAT IS A STAGGERING STATEMENT. Why would anyone want to pit people against one another like this? The only reason is playing identify politics. Keep people angry at one another so they don’t recognize the socialist/Marxist policies the Democrats are installing in our society. If you are happy with that, OK.
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