$ 15 minimum wage cut will be employment, reducing poverty, CBO study opportunities

According to one study, President Biden currently cut employment by 16,000 million by raising the federal minimum wage to $ federal.25 dollars from the level of $ federal.25 dollars per hour and increasing the number of Americans below poverty line Decreased by 1,000,000. The nonpartisan congressional budget office was released on Monday.

Mr. Biden and the Democrats are following legislation to double the current federal minimum wage, saying it would drive many low-wage workers out of poverty, but Republicans and some businesses and economists have warned that Such an increase could increase the cost of jobs in the US. Coronavirus-epidemic recovers from layoffs.

The CBO study said that if Democrats in Congress passed the $ 15 minimum wage bill, 17 million American workers, or about 10% of the labor force, would have increased their wages because they would otherwise have exceeded the federal minimum wage Will earn less. . The study noted that another 10 million employees who earn slightly more than $ 15 per hour could potentially receive a salary increase.

The study assumes a June enacted date for the bill, bringing the federal minimum wage to $ 9.50 per hour. Under the plan, salaries will be increased annually until the salary reaches $ 15 per hour in 2025. Subsequently, the pay scale will be adjusted based on the change in the average salary of all workers.

If the report found that the cumulative federal budget deficit would increase by $ 54 billion from 2021 to 2031, if the $ 15 federal minimum was enacted, because higher prices for goods and services would contribute to increased federal spending. The CBO said government spending on nutritional supplements would decline, but spending on Social Security benefits, unemployment benefits and health care programs would increase.