Current Events > CBO Report: $15 min wage would reduce jobs by 1.4M, poverty by 900K

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Increasing the federal minimum wage to $15 an hour by 2025, from the current $7.25 an hour level, as President Biden has called for, would cut employment by 1.4 million and reduce the number of Americans below the poverty line by 900,000, according to a study released by the nonpartisan Congressional Budget Office on Monday.

The cumulative federal budget deficit from 2021 to 2031 would increase by $54 billion if a $15 federal minimum was enacted because higher prices for goods and services would contribute to an increase in federal spending, the report found. Government spending on nutrition supplements would fall, but that would be offset by increased spending on Social Security benefits, unemployment benefits and health-care programs, the CBO said.

The report found enrollment in Medicaid, health care for low-income Americans, would fall because many workers would earn more, but program costs would increase to higher prices for medical services. Economic output would be reduced slightly, primary because of decreased employment, CBO said.

Article: https://www.wsj.com/articles/15-minimum-wage-would-cost-1-4-million-workers-jobs-lift-900-000-from-poverty-cbo-study-finds-11612800875

CBO report: https://www.cbo.gov/publication/56975

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It would reduce executive bonuses in unprofitable companies by 63%, which we absolutely cannot allow to happen.

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Republicans: No.

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Naysaspace posted...

It would reduce executive bonuses in unprofitable companies by 63%, which we absolutely cannot allow to happen.

make better post please

Increasing the federal minimum wage to $15 an hour by 2025, from the current $7.25 an hour level, as President Biden has called for, would cut employment by 1.4 million and reduce the number of Americans below the poverty line by 900,000, according to a study released by the nonpartisan Congressional Budget Office on Monday.

If I'm reading that right, they're basically saying 1.4 million people would lose their jobs, but 900,000 would be elevated out of the poverty line due to the increased income?

So minimum wage needs to stay at $8 an hour until the end of time or else.
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SK8T3R215 posted...

but program costs would increase to higher prices for medical services.

Wut?

CBO remained consistent and unbiased during the Trump admin, so I kinda believe them. Also makes sense that a lot of SMALL STORES who operate with very little profit margins wouldnt be able to afford 15 and end up downscaling or firing. So its got to be very carefully implemented. Like if the store doesnt make more than 250k in annual revenue it should be allowed to pay slightly less, especially in rural areas. Dont crucify me, just throwing random ideas.

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Esrac posted...

Increasing the federal minimum wage to $15 an hour by 2025, from the current $7.25 an hour level, as President Biden has called for, would cut employment by 1.4 million and reduce the number of Americans below the poverty line by 900,000, according to a study released by the nonpartisan Congressional Budget Office on Monday.

If I'm reading that right, they're basically saying 1.4 million people would lose their jobs, but 900,000 would be elevated out of the poverty line due to the increased income?

Yes.

ButteryMales posted...

Wut?

Fewer people will be enrolled in Medicaid programs due to higher income, but overall Medicare program costs will still increase due to higher costs for those enrolled and not decrease due to fewer enrollments.

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SK8T3R215 posted...

Fewer people will be enrolled in Medicaid programs due to higher income, but overall Medicare program costs will still increase due to higher costs for those enrolled and not decrease due to fewer enrollments.

That still doesn't make any sense. The government doesn't pay the arbitrary prices the doctors make up.

ButteryMales posted...

That still doesn't make any sense. The government doesn't pay the arbitrary prices the doctors make up.

In 2025 the reduced enrollment wouldn't lead to lower overall costs because medical prices will increase by more than the fewer enrollments will save.

I don't see what is very confusing about this.

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Beveren_Rabbit posted...

So minimum wage needs to stay at $8 an hour until the end of time or else.

Well, its more like we need to acknowledge that the extra income for some people wouldn't be without some unpleasant consequences for other people.

Esrac posted...

Well, its more like we need to acknowledge that the extra income for some people wouldn't be without some unpleasant consequences for other people.

that's not a reason to keep wages low. it just means the government has to do more for the people. enough of the corporate billion dollar bail outs. start investing in the American people. "if we make less people poor some people won't have a job!"...No, you refuse to do anything to help those people or create new jobs.

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This is why you need some kind of GMI or Basic Income. Requiring a job when your stated goal is to fight poverty clearly doesn't work since more people will be out of jobs than out of poverty.

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SK8T3R215 posted...

In 2025 the reduced enrollment wouldn't lead to lower overall costs because medical prices will increase by more than the fewer enrollments will save.

I don't see what is very confusing about this.

There's no reasoning behind this blanket statement.

ButteryMales posted...

There's no reasoning behind this blanket statement.

Why don't you just read their report if this is so confusing to you?

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It honestly needs to be lowered to weed out more folks

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I've been saying this for weeks. If you force employers to pay large numbers for wages, they arent going to pay everyone the wages, they'll just start firing people until it evens out.
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BigTee66 posted...

It honestly needs to be lowered to weed out more folks

from what? life?

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shockthemonkey posted...

The fuck does that even mean?

Homie is calling for the genocide of poor people.

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