The Biden administration's proposal to increase the minimum wage to $15 would contribute to a net loss of 1.4 million workers by 2025, according to a new report Monday from the Congressional Budget Office.
The finding will present major problems for Democrats, who have promised liberals an increase in the wage floor and are seeking to advance it as part of pandemic recovery legislation.
The proposed change would affect roughly 17 million workers in the average week of 2025 who earn the minimum wage, in addition to another 10 million workers who already earn near $15 an hour.
"Higher wages would increase the cost to employers of producing goods and services," the report reads. "Employers would pass some of those increased costs on to consumers in the form of higher prices, and those higher prices, in turn, would lead consumers to purchase fewer goods and services. Employers would consequently produce fewer goods and services, and as a result, they would tend to reduce their employment of workers at all wage levels."
Democratic $15 minimum wage proposal would reduce employment by 1.4M: CBO
- by: Tyler Van Dyke
- 2021-02-08
- Source:
Washington Examiner
- 02/08/2021
