Just in time for next week’s likely House vote on a federal $15 minimum wage, the nonpartisan Congressional Budget Office has come out with a caustic report on the consequences of the policy.
The report confirms what even liberal economists caution: A $15 minimum wage would “risk undesirable and unintended consequences” and lead to a survival-of-the-fittest labor market, where only the highest-skilled workers come out on top.
Democrats are under the illusion that the government can force employers to artificially increase wages with no adverse consequences for American workers. But that’s like saying the government could double families’ mortgage and rent payments without any consequence.
Here are six ways this new report exposes the minimum wage proposal as bad policy.
1. It would be a job-killer.
The Congressional Budget Office report estimated that a $15 minimum wage would lead to 1.3 million lost jobs by the year 2025, with job losses rising over time due to compounding negative impacts.
The exact number of job losses are highly uncertain, but the report says losses would most likely range between zero and 3.7 million, with a not-insignificant chance that losses could exceed 3.7 million.
A 2011 Heritage Foundation estimate was even bleaker. It estimated a $15 minimum wage would lead to 7 million lost jobs.
Some groups have tried to minimize this part of the picture, focusing instead on the 17 million workers who currently earn below $15 that would receive an income boost. But this simply means that for every 13 workers who would get a wage boost, one worker would lose their job entirely.
Considering that a lost job can mean a family loses its home, not to mention a host of other long-term consequences, that doesn’t seem like a trade-off worth making.
2. It would create a survival-of-the-fittest labor market.
The report makes clear that a $15 minimum wage would disproportionately harm workers with the least education and experience and those with disabilities because these workers would be the first to be let go—or to never be hired in the first place.
Read the full story from The Daily Signal
Want more BFT? Leave us a voicemail on our page or follow us on Twitter @BFT_Podcast and Facebook @BluntForceTruthPodcast. We want to hear from you! There’s no better place to get the #BluntForceTruth.