A new report by the Congressional Budget Office predicts that 1.4 million jobs would be lost as a result of Biden administration’s proposal to enact a $15 per hour minimum wage.
According to the non-partisan report, a $15 minimum wage would create higher prices for goods and services and, “stemming from the higher wages of workers paid at or near the minimum wage, such as those providing long-term health care — would contribute to increases in federal spending.
The cumulative budget deficit would increase between 2021-2031 by an estimated $54 billion.
Nonetheless, the CBO also estimates that a higher minimum wage would result in lower poverty levels. The federal minimum wage of $7.25 has not changed since 2009 and remains at historic lows when adjusted for inflation.
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