Compensation CBO Gives Mixed Verdict on $15 Minimum Wage

A strong endorsement of the $15 minimum wage from the Congressional Budget Office

Raising the federal minimum wage to $15 per hour would come as a boon for millions of workers who would receive pay increases, but not for the millions who would lose their jobs, according to a report released Monday.

The report, coming ahead of an expected House vote on the Raise the Wage Act, found that a $15 minimum wage would also reduce output and business income - a cost that would be passed on to consumers in the form of higher prices - for a cumulative $9 billion hit to median family income.

As Common Dreams reported last week, a far-reaching study by economists at the University of California, Berkeley found that raising the federal minimum wage to $15 an hour by 2024 would result in "substantial declines in household and child poverty" without any negative impact on employment or hours worked, even in low-wage states.

"The report finds that a $15 minimum wage would increase the wages of millions of low wage workers, increase the average incomes of low and lower-middle-income families, reduce poverty, shift money from corporate profits to the wages of low-wage workers, and reduce inequality", she said in a statement. But 1.3 million other workers would become jobless, according to CBO's median estimate.

New York Magazine's Eric Levitz argued Monday that the CBO analysis leaves congressional Democrats with no good reason to stop short of a $15 federal minimum wage. He said the cost of the legislation would hurt the groups that it intends to help by reducing their ability to enter the workforce.

Though the Raise the Wage Act has over 200 Democratic sponsors in the House and is backed by almost 75 percent of Democratic voters, so-called moderates have attempted to derail the bill by pushing for a "regional wage" adjusted to local living costs, arguing that a $15 minimum would lead to job losses in low-wage states. The rising minimum wage will increase pay for those minimum-wage workers who remain employed, as well as for those who would likely see a raise to keep the pay scales in the right order.

"This is about workers, their lives and their families's lives", Advincula told the Washington Free Beacon. They also question whether so many individuals could be out of a job if the minimum wage were boosted to $15. Norcross, a career electrician and former union official, said increasing individual pay hikes is the best way to give "working families a fair shot".

Raising the hourly minimum wage to $15 an hour is a proposal thatnearly all the Democratic presidential candidates have endorsed, arguing it will lift Americans out of poverty. Back then it was hard. "That is unacceptable-one job lost is one too many".

Industry groups said the CBO data reinforced the evidence of the economic harm that would come from mandating the same wage rates in MS as one finds in New York City. Sean Kennedy, executive vice president of public affairs for the National Restaurant Association said the proposed bill would disproportionately hurt women in the workforce. "We need a common-sense approach to the minimum wage that reflects the economic realities of each region, because $15 in NY is not $15 in Alabama".



Latest news

National Football League supplemental draft time, rules and Bengals outlook
It remains to be seen if there's pro bowl level talent that will come out of this year's class, but it's always a possibility. Green Bay already used a first-round pick in April on Maryland safety Darnell Savage, who's poised to start as a rookie.

UK Ambassador to the US Kim Darroch Resigns After Criticizing Trump
President Donald Trump and British Prime Minister Theresa May at the White House in Washington , U.S., January 27, 2017. May as prime minister later this month, may have damaged himself by declining to publicly defend Mr.

Jockey dies after eye pierced by metal straw
She was impaled by the straw, which caused a fatal traumatic brain injury. "I called 999 and requested an ambulance", she added. The type and brand of metal straw that Struthers-Gardner was using was not mentioned in the original report of the accident.

Forbes names Taylor Swift highest-paid celebrity in the world
Ed Sheeran , who is placed fifth in the list , is the highest-ranking Briton with estimated pre-tax earnings of $110m (£88m). Forbes dropped its Celebrity 100 list Wednesday, and Taylor tops the charts with the biggest earnings total of her career.

She Spoiled and Tarred America’s World Cup Win
Three months before the World Cup began, members of the US women's team sued the US Soccer Federation, for gender discrimination. Rapinoe told Anderson Cooper on Tuesday in an interview on CNN that she had accepted invitations from New York Rep.

Other news