Congressional Budget Office Says $15 Minimum Wage Would Cost 1.4 Million Jobs

According to a report by the Congressional Budget Office (CBO), a $15 minimum wage would cost the United States 1.4 million jobs while only pulling 900,000 people out of poverty.

The report also noted that the increased wage would increase the federal deficit by $54 billion between 2021-2023 and would increase the prices of goods and services.

“In 2025, when the minimum wage reached $15 per hour, employment would be reduced by 1.4 million workers [or 0.9 percent of all jobs], according to CBO’s average estimate. 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,” read the report.

CBO just released its new $15 min wage analysis—adds $58B to the deficit, kills 1.4M jobs. Have to look at how they reach these numbers, but it's a bad blow for the Raise the Wage Act. Progressive economists likely screaming into their laptops right now.https://t.co/x5X5GUzIay

— Jordan Weissmann 🗽 (@JHWeissmann) February 8, 2021

“Young, less educated people would account for a disproportionate share of those reductions in employment,” included the report.

There are still Democrats such as Ilhan Omar who support the measure and twisted the CBO report into her own narrative, tweeting “Raising the minimum wage to $15 would lift 900,000 out of poverty. It’s time!”

Raising the minimum wage to $15 would lift 900,000 out of poverty.

It’s time!

— Ilhan Omar (@IlhanMN) February 8, 2021

Democrats such as Sen. Joe Manchin have expressed unwillingness to support a $15 minimum wage, possibly throwing the whole COVID relief bill into jeopardy.

---

Follow the Patriots Gazette on Social Media:

---