CBO Estimate: $15 Minimum Wage Hike Will Cost 1.4 Million Jobs for Poor People
It's hard to think of a worse time for a minimum wage increase than during lockdowns and Black Lives Matter race riots that decimated small businesses.
But the Democrats are determined to never let a crisis go to waste and intend to ram through a $15 minimum wage increase that the Congressional Budget Office estimates will cost 1.4 million jobs.
The news is actually worse than that because the jobs lost will largely be those at the bottom of the ladder and for young workers.
If there's any policy that could make urban violence and blight worse, the minimum wage hike would be it.
Employment would be reduced by 1.4 million workers, or 0.9 percent, according to CBO’s average estimate...
But here's the kicker
e. In 2021, most workers who would not have a job because of the higher minimum wage would still be looking for work and hence be categorized as unemployed; by 2025, however, half of the 1.4 million people who would be jobless because of the bill would have dropped out of the labor force, CBO estimates. Young, less educated people would account for a disproportionate share of those reductions in employment.
That means we're looking at long term pain for the people the Democrats claim to be trying to help.