Congressional Budget Office Study Shows $15 Minimum Wage Would Kill Millions of Jobs — Dems Still Back It

Yuri Gripas/File Photo/Reuters

A new study from the nonpartisan Congressional Budget Office (CBO) found that a nationwide shift to a $15 minimum wage could kill millions of jobs in the first year alone.

According to the CBO, the $15 minimum wage could cost Americans anywhere from 1.3 to 3.7 million jobs within the first year of implementation.

The current federal minimum wage is $7.75 per hour, but there has been a major push from some Democrats to nearly double the minimum wage to $15. Conservatives have argued that nearly doubling the wage expenses for a business would have to result in either staff reductions or higher prices to make up the difference.

Beyond the job losses, the CBO found that most families would barely feel the boost from their wage nearly doubling. The report showed that most families would experience a less-than-one-percent boost in their average annual real family income.

Congressional Budget Office/Screen Shot

The CBO also studied the impact of increasing the minimum wage to just $12 or $10 and found that, either way, some jobs would be terminated and the change real family income would be negligent.

This is not the first study that has found an increase in the minimum wage to be damaging to American workers. When Seattle bumped their minimum wage to $15, the average worker lost hours and ended up making $125 less per month than they had before.

Still, several 2020 Democrats, including Sens. Bernie Sanders and Elizabeth Warren, have vowed to raise the minimum wage if they take over the Oval Office. The support wasn’t limited to just those running for president. Even House Majority Leader Steny Hoyer (D-Md.) claimed the study showed good results, rather than millions of lost jobs.

Several conservatives took to Twitter to condemn those pushing for a higher minimum wage and to mock those who refuse to see the negative impacts of the proposal.

Clearly, Democrats and Republicans are seeing two different stories play out following the CBO’s report which likely means the consensus needed to make changes to the federal minimum wage won’t be met anytime soon.

What do you think?

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Otis
Member

People have a choice when it comes to their jobs whether the naysayers believe it or not. My friend Scott was a hell-raiser from kindergarten on. Once he reached real ‘crime -worthy’ age he sure participated. Scott dropped out of high school and sold dope for a while when not fencing swag.. Scott impregnated his girlfriend in their trailer one night. He kept up his shennanigans even then. The night he got busted, his wife was giving birth to their child. Scott actually got a job at an auto parts place while going to Junior College. Scott is now CEO… Read more »

Screwtape
Member

More wonderful news! Restaurants Unlimited which operates 35 restaurants on the Left Coast has filed for bankruptcy. Per the Chief Restructuring Officer: “Over the past three years, the company’s profitability has been significantly impacted by progressive wage laws along the Pacific coast that have increased the minimum wage,” and “”As a large employer in the Seattle metro market, for instance, the company was one of the first in the market to be FORCED to institute wage hikes.” (CAPS mine) This means 1,885 part-time jobs, 168 full-time, and 50 salaried positions are gone. Of course the Dims don’t care about results… Read more »

Screwtape
Member

Remember that the Dims continue to push Socialism (though even Bernie won’t call it that), not because it’s failed but because it’s never been “done right”. “Done right” is another fallacy of the Party of Science™. It’s like saying, “If I keep smashing my thumb with this hammer I’ll find a right way for it not to hurt.” Here the living example of Seattle is not enough to convince them. “Income inequality” is just another way for them to justify telling you what you can do with your money. As always, it’s not THEIR money they want controlled.

General Confusion
Member

Two things…

The minimum wage can’t be doubled overnight. Seattle proved that raising the minimum wage by more than $2/year would lead to more job losses. It has to be spread out over a few years. As far as I know, that is baked into the policy plans of those who will enact the change. The minimum wage can and must be raised.

If you can’t afford to pay your employees a proper living wage, you don’t deserve to be in business.

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