The implementation of the economic policy proposed by Democratic presidential candidate Joe Biden would mean the disappearance of up to 2 million jobs, a study reveals.
In particular, the impact of Joe Biden’s promise to double the value of the hour worked from $7.50 to $15 would make millions of jobs disappear, if he wins the presidency, a study by the free market Employment Policy Institute (EPI) reported, according to The Washington Free Beacon on Oct. 19.
“It’s time we raised the federal minimum wage to $15 nationwide,” the Democratic Party website states.
To carry out its analysis, EPI applied a methodology based on updated assumptions that consider economic changes since 2019, including the disaster of the CCP (Chinese Communist Party) Virus closures.
The method was developed by the Congressional Budget Office.
Worse, the sectors most affected by job losses would be the most vulnerable and those who are downgraded or offered to inexperienced people.
“Fifty-nine percent of minimum wage jobs are held by women and are expected to be affected by these wage increases, meaning that 1.2 million jobs held by women will be lost by 2027 because of this policy, representing 61 percent of total losses,” the EPI report states.
The economic sectors most affected would be the arts, entertainment, recreation, housing, and food services.
“Texas is projected to be the most affected state, with more than 370,000 jobs lost by 2027, followed by Pennsylvania, Florida, North Carolina, Ohio, and Georgia. Most of the jobs lost will be those held by women,” according to The Washington Free Beacon.
In fact, the House passed the Wage Increase Act in 2019, which enacted a schedule of annual minimum wage increases to reach a federal minimum wage of $15 by 2027.
Although the U.S. economy has recovered quickly and shows evidence of strength, it must be remembered that the level of unemployment reached 14.7 percent, which in August had decreased to 8.4 percent.
“Increasing labor costs through a $15 federal minimum wage would only bring companies and the people they employ closer to the point of no return,” warned EPI Managing Director Michael Saltsman, referring to Biden’s policy.
Biden also said he is willing to sacrifice hundreds of thousands of oil and gas worker jobs to combat controversial climate change.
Biden made his statement on Dec. 19 during the Democratic leadership debate, after one of the moderators told him that for decades, however, the United States had enjoyed “periods of explosive economic growth” due in part to increases in oil and natural gas production.
“Would you be willing to sacrifice some of that growth, even knowing that it could displace thousands, perhaps hundreds of thousands of workers,” the moderator asked Biden.
“The answer is yes,” Biden said, adding that it is an “opportunity for those workers to make the transition to well-paying jobs” without giving specific details of the jobs that would be available to the multitude of displaced Americans.