Raise the minimum wage to $15 an hour and families will have less

Raise the minimum wage to $15 an hour and families will have less money.

The "Raise the Wage Act" proposed by House Democrats will be up for a vote on Thursday and certain Blue Dog Democrats have expressed concern that raising the federal minimum wage from $7.25 to $15 an hour by 2026 could negatively impact their constituents. The Congressional Budget Office’s (“CBO”) report on the effects of such an increase clearly demonstrates that their concerns are justified.

CBO’s median estimate is that a federal minimum wage of $15 would result in 1.3 million fewer workers being employed. But, CBO also found that it would raise wages for 17 million workers who would otherwise make less than $15 per hour and “potentially” 10 million workers with wages slightly above the new federal minimum. That sounds like a pretty trade off. Unfortunately, it’s not.

Notwithstanding these wage increases, CBO found that a $15 federal minimum wage would reduce family incomes $8.7 billion by 2025. This reduction would result from higher rates of joblessness, price increases for consumers, and reduced economic output (growth) all offsetting wage gains. While individuals below the poverty line would see their family incomes increase by $7.7 billion, families above the poverty line would see a decline of about $16.3 billion, or $8.7 billion more than the benefit for lower income families.

In other words, you raise the minimum wage to $15 an hour and American families have less money, brilliant. Even for progressives, a loss of $8.7 billion on a $16.3 billion investment should be viewed as a terrible result – you would think.

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Comment by luis✩USA on July 26, 2019 at 9:26am

"There is nothing that will push corporate America into even more A.I. (Artificial Intelligence) faster than having to pay higher wages to unskilled/non-skilled workers."

It's more than that, Pat. A federal minimum wage is only a spring board; or a starting point for union goons. Don't forget, unions TAKE a % of members' wages as dues. 

I'm sure you've noticed that there aren't any $1 Whoppers or 3pc KFC meals for $2.99 either. Forget about "Happy" Meals.  My point is that costs soar whenever overhead (i.e. wages) soars.

But, wait! There's more. There's also healthcare and other benefits as well. Before you know it, the cost of living has climbed so much that those "$15/hr" federal minimum wages are no longer enough...

Thus, more robotics will be brought to substitute cashiers and even flip burgers. So much for learning a work ethic.

Comment by Patricia Gillenwater on July 21, 2019 at 1:13pm

Jerome good point. I believe robotics will supplant many workers across many types of sectors just a matter of time.

Comment by Jerome on July 21, 2019 at 5:28am

There is nothing that will push corporate America into even more A.I. (Artificial Intelligence) faster than having to pay higher wages to unskilled/non-skilled workers.  Wages and salaries account for the biggest profit imbalance in any industry.  Remaining in a lucrative and a profitable business requires a decent profit margin.  Paying mandated minimum wages as starting salaries is cuts into profits, when profits get cut, two things can an will eventually occur.  Number one, implementation of robotics.  Number two, cutting overhead.  Wages and salaries for employees comes under the heading of overhead.  I don't have to explain where this trend will lead.  If A.I. isn't something that can be used in a certain business, that business will be shutting the doors.     

Comment by Patricia Gillenwater on July 20, 2019 at 4:51pm

Suzie your last comment has a lot of wings of truth.

As soon as a  COLA arrives there are always those be it business' local gov't or state gov't positioned to get their piece of it and who does it hurt always those of less means the others its just pocket change.

Present day $15 hour seems small but it is not for those who earn that wage for they may not earn it for long and while earning as you said they will keep not what they earned, taxes and more for goods and services. 

Nothing is free -- 

Comment by Suzie Nielsen on July 20, 2019 at 8:20am

Michael, Pat and Jerome,

Folks seem to forget how that minimum wage affects every single item we purchase- I call it a sneaky way to raise taxes, if an item costs more- you pay more tax. They forget that every worker down the line that is involved in either making the goods, packaging the goods or delivery of goods to stores, and each employee- in the end, will pay more! So there goes his increase! and yes, we will see more and more small businesses go out and then guess who will make the goods- that's socialism!

Comment by Patricia Gillenwater on July 19, 2019 at 9:52pm

Jerome you said " Places like Mickey D's, the Burger King, and Hardy's will be out of business in a year." Very well may be. LOL is this the little twit socialist way of getting rid of farting cows.

We do not eat out often. More likely that when we purchase foods for a treat from fast food places Chris does the takeout thing.

No matter the central gov't setting a $15/hour min wage does not mean states min wage is effected only workers working for the feds.

Of course progressive strongholds have managed to implement the $15 wage and the result has been lost jobs and higher eating out cost. Heck some restaurants have moved out of their reach f imposing the $15 wage.

Employers have also had to cut down on employee health benefits.  

Comment by Michael Trivisani on July 19, 2019 at 4:08pm

Here comes the $25 Big Mac.  $30 with cheese.  I got a question... If a person after working say 5 years for a company just getting to $15 an hour (maybe), would that person expect to be raised to $25 an hour?  What I am saying...the min wage to $15 an hour doesn't just mean people making $15 an hour, after putting in the time, is going to smile at the new people on their first day making the same money.  The min. wage adjustment is not only going to adjustment the min. wage.  The min. wage is going to be way more than a 'min.' problem.

Comment by Jerome on July 19, 2019 at 12:46pm

This stupidity is why I went to McDonald's last week with my wife and our 2 meals totaled over $14.00, she had a single disgusting looking and tasting filet of fish, and I had a double cheeseburger and fries and a diet soft drink.  Places like Mickey D's, the Burger King, and Hardy's will be out of business in a year.  I guess according to Liberal moronic Democrats flipping burgers is the new career goal for dumbed down snowflakes Millennial's.  McDonald's again for us?  Not on your life!!!  

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