Report: $15 Minimum Wage Would Kill Up to 3.7 Million Jobs | NTK Network Report: $15 Minimum Wage Would Kill Up to 3.7 Million Jobs

Report: $15 Minimum Wage Would Kill Up to 3.7 Million Jobs

The Congressional Budget Office issued a report Monday that could be bad news for Democrats who support the mandated wage increase.

By NTK Staff | 07.08.2019 @4:17pm
Report: $15 Minimum Wage Would Kill Up to 3.7 Million Jobs

The Congressional Budget Office (CBO) conducted a study that determined that a federally mandated $15 minimum wage could eliminate as many as 3.7 million jobs across the country.

While some states and municipalities have instituted a higher minimum wage, the national minimum wage is presently $7.25 per hour for most workers. The CBO study analyzed what bumping up that minimum wage to $10, $12, and $15 would do to the job market and economy.

According to the study, a $15 minimum wage would result in about 1.3 million people becoming jobless with the potential for that number rising to at least 3.7 million.

Instead of giving families that depend on minimum wage jobs a boost, the CBO study found that the net effect of a $15 minimum wage hike would be a $9 billion reduction in real family income by 2025, per Michael Saltsman, a senior vice president at Berman and Company.

Saltsman goes on to note that while a $15 minimum wage would potentially lift 1.3 million people above the poverty line, it would also reduce the number of jobs by 1.3 million. “In the worst-case scenario of 3.7 million jobs lost, you’re looking at roughly three lost jobs for each person out of poverty,” he tweeted. “Some trade-off!”

The House is expected to vote on the Raise the Wage Act later this month, according to CNBC. While Republicans are expected to oppose it, and the Senate is unlikely to take it up, Democrats could find themselves in a vulnerable position if they vote for this legislation.

The bill, which is sponsored by Rep. Bobby Scott (D-VA), could be particularly troubling for Democrats representing districts won by President Trump. Come Election Day 2020, these Democrats might find themselves defending a vote that could potentially eliminate 3.7 million jobs.

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