The non-partisan Congressional Budget Office released their report on the effects of the Democrats’ plan to raise the national minimum wage to $15 per hour, and it’s not very promising. While 1.3 million Americans would rise above the poverty line, another 1.3 million Americans would lose their jobs.
It’s a trade-off that conservatives as well as at least 1.3 million Americans and their families, cannot allow the Democrats to make.
The report shows 17 million Americans will get raises as a result of the plan. But killing the jobs of 1.3 million Americans plus the detrimental effects on tens of thousands of businesses who cannot afford the mandated pay hike should make the proposal, which Democrats will likely vote on this month, one that every American should oppose. Job-killing policies are rarely popular unless the information surrounding them is clouded, which is exactly what Democrats are trying to do.
Former Obama officials have come out in opposition of the estimates, according to CNBC:
It would result in 1.3 million more jobless Americans, according to the CBO. Both Scott and Heidi Shierholz — chief economist at the Labor Department during part of the Obama administration — argued the CBO’s methods in assessing job losses were flawed. Shierholz said she believes the CBO “substantially overstates the costs” of hiking the minimum wage.
The result of raising the minimum wage would actually be a net loss in wages, according to the CBO, with “real family income” falling by 0.1%, adjusted for inflation.
The CBO has had a poor track record in recent years with many estimates, famously underestimating the detrimental effects of Obamacare and underestimating the positive effects of the recent tax cuts, but jobs and wages estimates are much easier to calculate. There is plenty of historical and trending data available to back up their claims, giving the report higher credibility than previous estimates.
As Democrats try to paint themselves as the workers’ party, they hope voters will ignore the fact that their plans will destroy the lives of millions of hard-working Americans. When Democrats try to help, it’s a best practice to forcefully decline.
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