No good deed goes unpunished.
Democrats, many of whom are in the back pocket of unions like the SEIU, are soon likely to pass the ‘Raise the Wage Act,’ which would raise the federal minimum wage to $15 per hour by 2025.
However, while this will unlikely change Democrats’ minds, a new estimate by the Congressional Budget Office predicts that, while the increase to $15 will boost the wages for 17 million, 1.3 million people—or nearly eight percent of those impacted by the increase—would lose their jobs, reported CNBC.
Hiking the U.S. minimum wage to $15 per hour would give millions of Americans a raise but put a smaller share of people out of work, according to projections released Monday.
Raising the pay floor to $15 per hour by 2025 would boost wages for 17 million workers, the nonpartisan Congressional Budget Office estimated. At the same time, 1.3 million people would lose jobs, according to the CBO projections.
However, that is not where it ends.
The CBO also “estimates that there is about a two-thirds chance that the change in employment would lie between about zero and a reduction of 3.7 million workers,” according to the CBO release.
While many recognize the so-called “positive” effects of raising the minimum wage, even with eight percent of those expected to lose their jobs, many are not calculating the effects of wage compression/expansion on those companies already paying $15 or more.
However, even if the House of Representatives passes the minimum wage increase, it is unlikely to become law anytime soon.
Indeed, even CNBC recognizes the issue is a mostly-political one at this point:
Though the bill may not become law, Democrats view it as a way to portray themselves as better for the working class than Republicans as the 2020 elections approach. Every major Democratic candidate for president has endorsed a $15 per hour minimum wage. More than 200 House Democrats — including many who will face competitive reelection bids next year — have backed the bill. [Emphasis added.]