The Congressional Budget Office (CBO) estimated that about 1.4 million jobs could be gone if President Joe Biden were to impose a minimum wage of $15 per hour in the country.
“[T]hose higher prices, in turn, would lead consumers to purchase fewer goods and services. Employers would consequently produce fewer goods and services, and as a result, they would tend to reduce their employment of workers at all wage levels,” CBO calculated on its website on Feb. 8.
The CBO also said “Nominal gross domestic product (GDP) would be unchanged. As a result, total income is roughly unchanged,” but the federal deficit would soar by $54 billion, nearly double the current level.
Adding $16 billion to the deficit by 2031
Further, when including increases in net outlays for interest on the federal debt, “Those interest costs would add $16 billion to the deficit from 2021 to 2031.”
With all these CBO projections, it is not clear how nearly 1 million people could be lifted out of poverty, as is also forecast.
Plan generates criticism of Biden and Democrats
The law was projected to be enacted by the end of March and the increases would be gradual, reaching $15 in June 2025. This is one of the initiatives of Biden and the Democrats that generates a lot of criticism.
This Biden plan was included in his massive $1.9 trillion bailout package, which Democrats are trying to push through Congress without Republican support, through “budget reconciliation,” reported the New York Post.
At the same time, Republicans succeeded in pushing through a ban on a federal minimum wage increase during the CCP pandemic, in support of employers and in consideration of the burden they would have to shoulder.
After Biden’s executive orders against oil and gas energy development ruined tens of thousands of jobs, and his pro-controversial climate change bias led to a projected loss of nearly 1 million jobs, the U.S. job outlook is darkening.
Sen. Joni Ernst (R-Iowa) said the $15 minimum wage would be “devastating” to already struggling small businesses.
Sean Hannity said the impact of raising the hourly rate to $15 could be even more impactful, as he states in one of his tweets. “REPORT: Joe Biden’s Proposal to Raise National Minimum Wage to $15 Could ‘Kill 3.7 Million Jobs,'” tweeted Hannity.
REPORT: Joe Biden’s Proposal to Raise National Minimum Wage to $15 Could ‘Kill 3.7 Million Jobs’ https://t.co/ke4sfIEc8t
— Sean Hannity (@seanhannity) January 20, 2021