CBO Estimates Biden's Move to $15 Min. Wage Could Cost 3.7 Million American Jobs

Nick Kangadis | January 20, 2021


A 2019 report by the Congressional Budget Office (CBO) that examined how employment would be affected by a minimum wage increase to $15 is receiving renewed interest amidst the "transition of power" from President Donald Trump's administration to President-elect Joe Biden's administration.

The CBO report states the following:

According to CBO’s median estimate, under the $15 option, 1.3 million workers who would otherwise be employed would be jobless in an average week in 2025. (That would equal a 0.8 percent reduction in the number of employed workers.) CBO 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.

That means that the "1.3 million workers who would otherwise be employed" will eventually be jobless with a move to a $15 minimum wage. Sure, there would be plenty of people that would welcome the increase in pay, but a good portion won't even have a job to welcome such an increase.

The low end being zero should scare people, because that means that the increase in minimum wage wouldn't create many jobs, if any.

You need to pay attention to what reports aren't saying along with what's being reported.

For his part, Biden has reportedly included a minimum wage increase to $15 in his Chinese coronavirus relief package. Biden has previously voiced his agreement with a move to raise the federal minimum wage to $15/hr.

"No one working 40 hours a week should live below the poverty line,” Biden said last Thursday. “That’s what it means, if you work for less than $15 an hour and work 40 hours a week, you’re living in poverty."