Commentary: Biden’s $15 Minimum Wage Would Increase Child Care Costs by Average of 21 Percent
Increasing the federal minimum wage to $15 may be sold as a way to lift Americans out of poverty, but really it’s just another attempt to break the economy and spread the misery — just like every other Democratic plan…

Increasing the federal minimum wage to $15 may be sold as a way to lift Americans out of poverty, but really it’s just another attempt to break the economy and spread the misery — just like every other Democratic plan.
Democrats are pushing for the increase as part of President Joe Biden’s proposed $1.9 trillion coronavirus relief package, ostensibly to help struggling families.
But according to Rachel Greszler, a research fellow in economics at the Heritage Foundation, a minimum wage hike would force families already struggling to pay more for daycare.
“Childcare costs would increase by an average of 21 percent — an extra $3,728 per year for two children — and up to 43 percent, or more than $6,000, in some states,” Grezler warned in a report published by the foundation on Feb. 11.
The minimum wage increase is especially burdensome because the child care industry is highly regulated and not easily automated, leaving few options for reducing overhead expenses.
The higher cost would be passed down to parents and ratchet up the share of income paid for daycare, which for some families would top out at 40 percent of their overall budget, according to Grezler.
The research fellow asserted that many in two-parent households would opt to have one parent stay home instead, exacerbating another problem Democrats supposedly care about.


