2014-02-18

Minimum Wage Hike Will Cost Jobs

From Reuters:


"Raising the U.S. federal minimum wage to $10.10, as President Barack Obama and Democrats in Congress are proposing, could result in about 500,000 jobs being lost by late 2016, the Congressional Budget Office (CBO) estimated on Tuesday.

The non-partisan CBO also said that increasing the hourly wage could reduce U.S. budget deficits by a small amount for several years, but then increase them slightly in later years.
The current minimum wage is $7.25 an hour."

"Altogether, 16.5 million workers would see their earnings rise with a $10.10 wage, while 7.6 million would benefit with a $9 wage, according to the CBO report."

Obama keeps costing jobs according to the CBO, eh? First, Obamacare is expected to impact jobs and hours negatively and now this.

Hey. Bush left such a mess Obama's best efforts can't fix them!

***

I wish we'd have reports like the CBO here in Canada keeping an eye on government finance. Quebec and Ontario each raised their minimum wages ($10.35 and $11 respectively) but I haven't see any report discussing the potential impact on the economy.

Personally, I don't accept these decisions as an article of faith that it will improve our lot.

 

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