Report: A $15 Minimum Wage Would Be an Economic Disaster




 

Rachel Greszler

Security,

It sounds good--in theory.

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.

Read the full article.

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