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.
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.
A $15/hour min wage would increase wages for 27M workers & result in 1.3M fewer people living in poverty. Dems campaigned on a promise to lift wages, and I look forward to bringing the #RaisetheWage Act to the Floor next week to honor that promise. https://t.co/xqTpEG5ei2
— Steny Hoyer (@LeaderHoyer) July 8, 2019
Every time a minimum wage increase has been proposed, the extreme right wing and their billionaire campaign contributors claim that jobs will be destroyed.
They have been proven dead wrong. It is time to raise the minimum wage to at least $15 an hour. https://t.co/4d2WSrdX8u
— Bernie Sanders (@SenSanders) July 9, 2019
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.
We just saw a strong June jobs report thanks to the work @realDonaldTrump & Republicans did to cut taxes & eliminate bureaucratic red tape.
→ 224,000 jobs added
→ 3.1% wage growth
Why are Dems so determined to reverse this & hurt workers with their radical minimum wage bill?
— Steve Scalise (@SteveScalise) July 8, 2019
— Rep. Kevin Brady (@RepKevinBrady) July 9, 2019
Bernie Sanders cites a report claiming his minimum wage hike will destroy 1.3 million jobs to argue that his minimum wage hike will not destroy any jobs. Really impressive, @SenSanders https://t.co/Wz392QfSJp pic.twitter.com/h2cLktDkzY
— Harry Khachatrian (@Harry1T6) July 9, 2019
CONFIRMED→ Democrats' minimum wage plan would erase up to 3.7 MILLION American jobs.
My full statement on this breaking report: pic.twitter.com/BfRFimI6u7
— Kevin McCarthy (@GOPLeader) July 8, 2019
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.