Minimum wage hike would kill a half-million jobs: CBO

Raising the minimum wage to $10.10 an hour will cost the U.S. economy a half-million jobs by 2016 but will substantially boost wages for most low-income workers, according to a Congressional Budget Office report released Tuesday that adds a significant hurdle to Democrats’ push for an increase.

Stung by the findings, the White House, which is still facing a sluggish job picture five years after the recession, scrambled for a response. It praised the nonpartisan agency’s finding that low-wage workers’ income would rise but said the CBO job numbers “do not reflect the overall consensus view of economists.”

Republicans predicted that the CBO report will bolster opposition on Capitol Hill, where the issue is likely to come up for votes in the next few weeks.

“Raising the minimum wage would slash jobs and harm an already fragile workforce,” said Sen. John Cornyn, Texas Republican. “Whether it’s Obamacare, a minimum wage hike, or a trillion-dollar stimulus bill charged to the nation’s credit card, the bottom line is the president’s big-government experiment kills jobs.”

The report marks the second time this month that the CBO has caused headaches for President Obama’s domestic agenda. A previous report found that by 2017, Obamacare would create economic incentives that would cause 2 million people to drop out of the labor force.

5 Comments - what are your thoughts?

  • Jon Frierson says:

    The CBO report actually says that the increase in the minimum wage could cost 500,000 jobs, not that it will.

  • I Seigel says:

    I wish Republicans would PLEASE make up their minds. This time, it’s flip-flopping on the Congressional Budget Office. Before, when the CBO analyzed the Republican plan for tax cuts and found that they would INCREASE the deficit, Republicans wanted the CBO shut. When the CBO analyzed Obamacare and stated that it would bring many BENEFITS to the economy, the Republicans cried that the CBO was a puppet of the administration. Now, when the CBO says that some jobs will be lost BUT THAT THE OVERALL EFFECT ON LOW WAGE JOBS AND POVERTY WILL BE POSITIVE AND AT NO COST TO TAXPAYERS (yes, that IS what the CBO said!!), the Republicans are quoting the CBO like gospel.

    PLEASE make up your minds!! Are you now FOR the CBO after you were against it?

    1. carolesandlerkahn says:

      I don’t think the minimum wage should increase at all. It will only serve to encourage those involved to STAY and NOT ADVANCE themselves to a better standard of living. Also, it will put small business owners out of business…What a dumb-ass idea! As the number of businesses are forced to close, OBAMA’s destruction of AMERICA will continue, which is EXACTLY
      his agenda.

  • Brer_Rabbit says:

    Wages for unskilled workers needs to increase, but I would rather see these wages increase as a product of supply and demand. However, this cannot happen as long as millions of legal and illegal immigrants are able to flood the unskilled labor market. The Chamber of Commerce and other short sighted groups oppose not only the minimum wage increase, but also any tightening of the labor market by supporting a continuing flood of foreign labor.

  • frankenbiker says:

    Those holding minimum wage jobs, are usually the dishwashers, fast food workers, gas station attendants etc. These are not meant to be careers, they’re stepping stones to a better job. I don’t mind the minimum wage being raised so much as I mind it being raised to $10.10 a hour. That big a jump is not called for. This is just a political move to get the fast food unions off the backs of this regime. Is it justified giving that much an hour to a kid washing dishes for a summer job? Many small businesses won’t be able to keep that kind of payroll, and they’ll either end up going under, or firing personnel.

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